Displaying items by tag: Türkiye

Türkiye: Cement producer Karcimsa Cement said that it will invest US$30m in a 1Mt/yr clinker and granulated slag grinding facility in Kayseri.

The plant will produce ‘green’ cement with low carbon emissions, according to chair of Karcimsa, Soner Ozbey.

Back in March 2024, Türkiye imposed restrictions on cement to expand the use of low-carbon cement in public procurement contracts from 2025.

"The clinker/cement ratio in the cement to be used in public investments will be a maximum of 0.80 as of 2025 and this ratio will decrease to 0.75 by 2030," Karcimsa said.

The company will reportedly procure slag from Kardemir to be used in production.

Karcimsa is a joint venture between Turkish steel firm Kardemir and concrete producer Beycim Beton Sanayi.

US President Donald Trump threatened tariffs on imports from Canada, China, Mexico and the European Union this week. Tariffs to Canada and Mexico were announced on 1 February 2025 and then paused for a month to allow for negotiations. Ones to China have been implemented. Tariffs to the European Union have been proposed but nothing has happened yet. What does this mean for the cement sector?

Graph 1: Imports of cement and clinker to the US. Source: USGS. Estimated data for 2024.

The data suggests that whacking 25% tariffs on cement imports from Canada and Mexico would have an impact. The US imported 26.5Mt of cement and clinker in 2023. Based on United States Geological Survey (USGS) data from January to October 2024, imports in 2024 have fallen by 8% year-on-year but they still represent a large chunk of consumption. Türkiye has been the biggest source of imports over the last five years but Canada has been the second biggest supplier. Together with Mexico, it provided over a quarter of imports in 2023. A similar share is expected in 2024. Greece, a country in the EU, has also been present in the top five importing countries to the US during this time.

The Portland Cement Association (PCA) reinforced this view. In a carefully worded statement it took pains to point out alignment with the intentions behind the tariffs, such as appreciating that the administration was open to negotiation and appeared to be flexible. However, it warned that the moves could adversely affect energy and national security, delay infrastructure projects and raise costs. It pointed out the import share from Canada and Mexico, adding that this represented nearly 7% of the US’ cement consumption. It noted which states were the main entry points for cement imports from the two countries. Finally, it highlighted the high level of consumption (36%) that imports from Canada might account for in northern states such as New York, Washington and so on. Meanwhile, Mexico’s National Chamber of Cement (CANACEM) warned that the proposed actions might trigger a ‘competitiveness crisis’ in the US.

Holcim’s CEO, by contrast, nonchalantly told Reuters that he didn’t expect any impact by tariffs on his business. Miljan Gutovic described the group’s US operations as a local business with production happening in the country and equipment and spare parts all being sourced locally. This optimistic view is likely to be influenced by the company’s impending spin-off of its US business. The listing in the US remains scheduled for the first half of 2025 with no complications expected from tariffs.

Clearly, implementing tariffs on imports of cement and clinker from Canada and Mexico could cause a shortage in the US in the short term. This, in turn, could lead to higher prices for consumers in the US. This potential effect would be pronounced in border regions that are reliant on imports. It is worth noting that a number of production lines in both Mexico and Canada have previously been mobilised to meet the export market to the US. These lines would likely be mothballed if tariffs were to be implemented, unless they could find other markets. In the medium term though, as the World Cement Association (WCA) pointed out this week, the world produces too much cement. So it looks likely that the US cement market would adjust to a new equilibrium. Taxing imports from the EU would have a similar effect. Although it seems like it would be less pronounced for the US cement market unless it was in conjunction with tariffs to Canada and Mexico. It would certainly be bad news for cement producers in Greece.

Cement producers in the US look set to benefit from tariffs as demand for their products and prices could increase. There is a risk that too sudden a change to the import market could cause adverse market effects through shortages. Many of these companies are multinational groups with headquarters in foreign countries. However, the strength of the US market compared to elsewhere has prompted some of these businesses to become more ‘American’ through listing in the US or focusing merger and acquisition activity in North America.

At this point we’re stuck in a half-way house place where import tariffs have been threatened and negotiations are pending. The relatively muted stock market reaction to the tariffs and Trump’s swiftness in enacting pauses suggest that it is brinkmanship by the US administration. If this situation continues for any length of time then it will likely have an effect all of its own. In which case don’t expect any export-focused investment by cement companies in Canada and Mexico any time soon.

Indonesia: A government scheme to build three millions houses per year is expected to boost demand for cement. Special envoy for climate change and energy, Hashim Djojohadikusumo, said that the country had secured financing from Qatar to construct four to six million housing units, according to Antara. An agreement has been secured with the UAE to build one million houses. Hashim also mentioned that countries including China, Türkiye, India and Singapore had expressed interest in investing. The government’s housing budget plan for 2025 is currently valued at around US$310m.

Türkiye: Two members of the cement sector have reportedly died in a fire at the Bolu Kartalkaya Ski Center. Aysemin Elif Dogan, Mehmet Cem Dogan and their daughter perished in the incident, according to posts by their employers on LinkedIn. 76 people have so far reported to have been killed.

Aysemin Elif Dogan was the R&D and Quality Director for Baştaş Çimento, a subsidiary of France-based Vicat.

Mehmet Cem Dogan had been the plant manager of OYAK Çimento’s Bolu plant in Caydurt since 2023. Prior to this he was the manager of a plant in Ankara. Dogan previously worked for Vicat’s subsidiary Baştaş Çimento and Cimpor in process engineering and production management roles.

Türkiye: According to the Turkish Ministry of Trade, Türkiye's global cement exports declined by 6.2% in 2024 to US$4.3bn, with exports in December 2024 amounting to US$341m, a 3% year-on-year decrease. Cement exports over the 12-month period from December 2023 to December 2024 also stood at US$4.3bn.

Cement exports from Türkiye to Kyrgyzstan also dropped in 2024, by 86% year-on-year, amounting to US$3.9m. However, December 2024 exports to Kyrgyzstan rose 7.2% year-on-year to US$751,065.

Türkiye: thyssenkrupp Polysius has appointed Ugur Kacar as Head of Middle East and Turkey / Services. He has also been selected as the general manager and a board member for the local subsidiary thyssenkrupp Polysius Türkiye.

Kacar has worked for thyssenkrupp and its subsidiary thyssenkrupp Polysius since 2018. He started as Account Manager – Cement in Türkiye before becoming the Head of Sales - Middle East and Turkey for thyssenkrupp in 2021. Prior to this he held maintenance and project management positions with Çimsa, Limak Cement and Çimko Çimento. He holds an undergraduate degree in mechanical engineering from Cukurova University in Adana and a master of business administration (MBA) qualification.

Türkiye: Sinoma Overseas has dispatched its 300t/hr ball mill and roller press system for Kipas Cement's grinding project. The Kipas team conducted a factory inspection at Sinoma’s ball mill manufacturing workshop prior to shipment.

Türkiye: Traçim Çimento has appointed Oguz Aydinc as Plant Director.

Aydinc started his career in the 1990s and spent 18 years working for Nuh Cimento, mostly in production roles. He then became a factory manager for Traçim Çimento in 2014. He has since worked for Traçim Çimento and Dinçer Çimento in managerial roles as well as for other companies. He recently held the position of Business Development Manager for Liomsi & AMC. Aydinc holds a bachelor’s degree in chemical engineering from the Middle East Technical University.

Türkiye: Türkiye's global cement exports contracted by 6.4% from January to November 2024, totalling US$4bn, according to the Trade Ministry. However, November 2024 saw a modest increase of 0.3% in cement exports, amounting to US$346m. From November 2023 to November 2024, the total value of cement product exports reached US$4.3bn.

Türkiye's cement exports to Iran decreased by 42% year-on-year, totalling nearly US$11.7m during the same 11-month period. Despite this decline, exports in November 2024 rose slightly by 1.5% year-on-year, reaching over US$1.6m.

Türkiye: Oyak Cement will invest US$4.59m to increase fuel supply capacity at its Adana plant. The producer will add 180,000t/yr of processing capacity to the existing 36,000t/yr refuse-derived fuel (RDF) production capacity, raising the total to 216,000t/yr. It will also establish a biomass facility with a capacity of 180,000t/yr. The RDF will be prepared at a disposal fuel facility for use in the cement plant.