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News Ukraine

Displaying items by tag: Ukraine

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The end of cement production in Poland and the EU?

28 May 2025

The Polish Cement Association (SPC) has taken a swing at mounting cement imports from outside of the European Union (EU) in recent weeks. Its ‘apocalyptic’ message was underlined by the name of a seminar it participated in at the European Parliament: “Is the end of cement production in the EU approaching?” The SPC’s primary target appeared to be imports from Ukraine. It said that, “...cement imports from Ukraine - only to Poland - have increased by almost 3000% over five years (2019 - 2024). (In 2024) it amounted to more than 650,000t, and forecasts for 2025 already indicate more than 1Mt.” However, it detailed other issues affecting the sector including high energy prices, the EU Emissions Trading Scheme (ETS) and decarbonisation costs such as carbon capture.

The SPC is clearly keen to find cross-country support in the EU. In its accompanying statement it said "The uncontrolled increase in imports - from Ukraine to Poland or Romania, and from Türkiye and Africa to Italy or Spain - is already directly threatening cement producers, and will only continue to rise until the full implementation of the CBAM. It shows that imports from outside the EU are not just a problem for Poland.” Representatives from the cement associations in the later countries - CIROM, AITEC and Oficemen - all added comments to the SPC statement.

The SPC has called for a customs quota on cement imports from Ukraine to Poland to be introduced. It also asked for the European Commission to extend the EU ETS indirect cost compensation scheme to include the cement sector in order to further hedge against rising energy bills. It argues that this measure is essential to keep the cement industry competitive both now and in the future. Future electricity consumption is expected to double as cement plants start to install carbon capture technology.

Graph 1: Domestic cement sales and imports in Poland, 2019 - 2024. Source: SPC, Eurostat.  

Graph 1: Domestic cement sales and imports in Poland, 2019 - 2024. Source: SPC, Eurostat. Note: 2024 sales estimated.

Data from the SPC suggests that domestic cement sales in Poland peaked at 19.4Mt in 2022. They fell by 12% year-on-year to 16.6Mt in 2023 and then appear to have grown to 17.1Mt in 2024 based on estimated data. It is hard to replicate the SPC’s methodology for determining cement imports into Poland based on Eurostat data. However, data in its Economic Impact Report published at the end of 2024 suggests that imports from Ukraine grew from 79,000t in 2019 to 332,000t in 2023. Any significant rise in imports of cement in 2024, as the local industry recovered from the decline in 2023, seems likely to have caused concern.

Polish concern at growing imports from Ukraine started to be expressed in the press from early 2024 onwards when the 2023 data became apparent. Germany had been the biggest source of imports from the mid-2010s. Yet Germany and Ukraine both supplied about 30% of total imports each in 2023. For example, SPC head Zbigniew Pilch noted in April 2024 that imports from Ukraine were growing steadily each month and represented nearly half of total imports in January 2024. He described these volumes as “deeply concerning.” The Association of Cement Producers in Ukraine (Ukrcement) later attempted to soothe Polish concerns in late 2024 looking at longer import trends and bringing up the challenges facing Ukraine-based producers operating in a warzone.

Concerns about imports from Ukraine in eastern countries in the EU go back decades but have been clouded by the war with Russia. This is now reasserting itself as import levels grow, the cost of decarbonising heavy industry becomes more urgent and the CBAM comes into force. That said , cement plants in Ukraine look unlikely to cope with the CBAM that well due to their relatively high emissions intensity. Yet, other exporting countries outside the EU with lower cement sector emissions intensities may simply displace their competitors. Hence, the SPC’s call for a quota. The kinds of arguments that the SPC is making about carbon leakage are likely to grow fiercer across the EU as the definitive stage of the CBAM, due to start in 2026, draws nearer. Will the current situation lead to ‘the end of cement production in the EU?’ Time will tell…

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Ukraine extends anti-dumping duties on cement from Russia, Belarus and Moldova until 2030

27 May 2025

Ukraine: The Interdepartmental Commission on International Trade has extended anti-dumping duties on cement from Russia, Belarus and Moldova until 2030, according to Ukrainian News. The duties stand at 115% for Russian cement, 94% for Moldovan cement and 57% for Belarusian cement, following a review of measures first imposed in 2019.

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Polish cement producers call for limits on Ukrainian imports

22 May 2025

Poland: Cement producers are calling on the European Commission to introduce quotas on imports from Ukraine, to limit their volumes to 0.36Mt/yr. This figure is almost half of the 2024 figure. Poland imported 0.1Mt of cement from Ukraine in 2022, but more than 0.65Mt in 2024. Forecasts for 2025 exceed 1.0Mt, a 10-fold increase in just three years. Ukraine exported 1.7Mt of cement to EU countries in 2024.

The Polish Association of Cement Producers (ACP) believes that the increase in imports is already harming local cement plants, which it says are forced to compete with Ukrainian suppliers on unequal terms. Wlodzimierz Choluy, a member of the ACP's board of directors, emphasised that the effects of imports were becoming particularly noticeable in the border regions of Podkarpacie and Lublin voivodeships.

Polish manufacturers complain that Ukraine is not covered by the EU Emissions Trading Scheme (EU ETS), meaning that Polish-made cement is at a cost disadvantage. This is known as ‘carbon leakage.’

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Court invalidates competition clearance for CRH Ukraine’s acquisition of Dyckerhoff Cement Ukraine

11 April 2025

Ukraine: A court has reportedly invalidated the Antimonopoly Committee of Ukraine (AMCU)’s competition clearance for CRH Ukraine's acquisition of Buzzi subsidiary Dyckerhoff Cement Ukraine, completed in October 2024. Interfax-Ukraine News has reported that the court found that the clearance, granted in September 2024, was based on insufficient ‘clarification and evidence’ of details on the Ukrainian ready-to-use mortar mixes market situation.

The court allegedly also ruled that the Netherlands-based subsidiary of Ireland-based CRH had yet to meet certain commitments upon which the AMCU’s approval was conditional. Following the acquisition of Dyckerhoff Cement Ukraine, it was required to appoint executive, directorial or supervisory personnel to the company who did not already hold positions in CRH Ukraine-controlled entities. CRH clarified that it in fact appointed Mariusz Tomasz Bogacz on 11 October 2024, after his powers as a member of the supervisory board of Podilsky Cement had already been terminated, on 8 October 2024.

Building materials and property development company Kovalska Group mounted the successful legal challenge. The Kyiv Post newspaper has reported that the Kyiv-based company controls over 50% of the concrete market in Kyiv Oblast.

Dyckerhoff Cement Ukraine’s assets comprise two integrated cement plants, cement terminals and ready-mix concrete plants in Kyiv, Odessa and Mykolaiv. They entered Italy-based Buzzi’s control following the group’s progressive acquisition of Germany-based Dyckerhoff in 2001 – 2013. CRH and the European Bank for Reconstruction and Development signed a mandate letter for the launch of a joint acquisition of the business in December 2023. The value of the deal was reportedly €100m.

The latest decision is currently under appeal by CRH.


This story was modified on 22 April 2025 to correct the inaccurate claim that the latest court ruling 'blocked' or ‘overturned' the completed acquisition and to add CRH's clarification regarding the effective appointment of Mariusz Tomasz Bogacz.

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Ukrainian producers prepare to scale cement output for reconstruction

07 April 2025

Ukraine: Ukrainian cement and concrete producers are ready to expand capacity to meet reconstruction demand, according to a survey by Consumer and Business Research Ukraine (CBR), despite reduced funding and limited state budget. Cement production dropped to 5.4Mt in 2022 from 11Mt in 2021 but stabilised at 7.4Mt in 2023 and 7.97Mt in 2024. CBR estimates that 8Mt/yr is feasible during wartime, rising to 12Mt/yr in the third or fourth year of reconstruction.

The Ukrainian Cement Association (UkrCement) head Pavlo Kachur said “Reconstruction will begin with demining, reinforcing the front lines and restoring energy infrastructure. Large-scale construction will likely not begin until the third or fourth year.”

At present, plant capacity utilisation varies across regions. Plants in western Ukraine are operating at higher capacity, while those in the south and east remain underutilised. In 2022, plants operated at a loss but retained staff. In 2023, volumes were sufficient to break even. Two-thirds of surveyed consumers increased production in 2023, though 2024 expectations were cautious.

Kachur said “Time will be needed for training, planning and securing financing—and cement producers will use that time to fill the market, primarily by investing in modernisation and capacity expansion. For example, two major projects to build new kilns are already ready in Kryvy Rih and Ivano-Frankivsk.”

The study notes that building brand new plants is unlikely, but modernising existing kilns can be accomplished within a year. It expects at least two plants to launch new kilns, increasing capacity by 2Mt/yr. For example, Kryvyi Rih Cement has obtained a permit to develop the Maryanske limestone deposit (60km from the plant) and plans to build a clinker kiln at the site.

CBR researcher Tetiana Sytnyk said “Cement companies are ready to make rapid investments in modernisation and to launch additional kilns once recovery begins. They’re waiting for clear signals to proceed – such as the allocation of reconstruction funds or a surge in demand to at least 9.5Mt/yr.”

Ukraine exported 1.7Mt of cement in 2024, up from 56,000t in 2021, with Kachur adding that exports have ‘saved’ the local industry during the war. Developed countries will be capable of meeting Ukraine’s reconstruction needs, though this could hurt local producers. Kachur added “During the recovery phase, Ukraine’s market must be as localised as possible with domestic products. Only countries that supported us during the war should have access.”

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Polish cement industry forecasts rise in production

24 January 2025

Poland: The Polish cement industry predicts a 5% increase in production in 2025, to nearly 18Mt, driven by anticipated economic growth and potential EU fund unblocking under a national recovery plan.

Poland's statistics office reported cement production of 16.5Mt at the end of November 2024, a 5.6% year-on-year increase. The main factor impacting Poland's cement production volume was a weak construction industry and a significant increase in imports from Ukraine. According to a report by EY Poland, cement imports from Ukraine increased from just 300t in 2015 to almost 0.33Mt in 2023. Ukraine's share of cement imports to Poland in 2023 reached 29%, almost equalling the volume of supplies from Germany.

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Ukrcement tries to allay Polish import concerns

13 December 2024

Poland: Ukrainian cement exports to Poland account for less than 4% of Poland's production, indicating no need for a trade war, according to the Association of Cement Producers in Ukraine (Ukrcement). The association was responding to concerns raised by the Polish Cement Producers Association, which stated that imports of Ukrainian cement into Poland could triple from 0.5Mt in 2024 to 1.5Mt in 2025.

Ukrcement stated that the export of Ukrainian cement to Poland had historically been minimal, accounting for only 0.2-0.3% of Poland's total cement production in 2021, amounting to 53,400t. "Before the full-scale invasion, the export of cement from Ukraine to Poland was symbolic in nature, dictated by the logistics of consumer choice in the border areas of Ukraine-Poland," the association said.

However, since the start of the full-scale war, exports to Poland have significantly increased, partly due to a significant reduction in domestic cement consumption in Ukraine, from 10.5Mt in 2021 to 6.1Mt in 2023.

"If we compare the export of cement from Ukraine to Poland during the war with the total production volumes in Poland, we get a figure that does not exceed 4%. Is this indicator such a decisive factor for cement producers in Poland?" Ukrcement asked.

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Polish cement producers threatened by rising Ukrainian imports

10 December 2024

Poland: Imports of Ukrainian cement to Poland are expected to rise from over 500,000t in 2024 to 1.5Mt in 2025, according to Ukraine Business News. Before the war, Ukraine consumed 12Mt/yr of cement, now reduced to 4Mt/yr, with the surplus exported mainly to Poland. Ivano-Frankivskcement, Ukraine’s largest producer, is currently expanding its capacity to 4Mt/yr, which could threaten the Polish cement industry.

The Polish Cement Producers Association said “The uncontrolled cement flow from Ukraine is unfair competition, since its producers do not bear the EU’s climate policy costs. Therefore, we cannot compete with Ukrainian imports.” It demands limiting duty-free imports to the average level of the past three years during the 2025 EU-Ukraine trade agreement review.

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Polish cement industry faces challenges due to increase in Ukrainian imports

24 September 2024

Poland: The Polish cement industry is under threat from increasing Ukrainian cement imports, which have risen by 106% year-on-year in the first half of 2024, according to Warsaw Business Journal. These imports, making up 91% of all cement imports into Poland, could exceed 500,000t by the end of 2024. Despite a projected 3.6% rise in domestic production to 17.2Mt, the competition from lower-cost Ukrainian cement, not subject to EU climate regulations, threatens Poland's economy and job market.

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CRH Ukraine majority stake in Dyckerhoff Cement Ukraine approved

09 September 2024

Ukraine: The Antimonopoly Committee of Ukraine (AMCU) has approved CRH Ukraine's acquisition of over 50% of the voting shares in Dyckerhoff Cement Ukraine. This move is part of a broader agreement that includes anti-competitive measures to be implemented within 24 months post-transaction. CRH Ukraine will acquire a 99.9775% stake in Dyckerhoff, with expectations for the European Bank for Reconstruction and Development to potentially join as an investor following a mandate signed in December 2023. 

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