Global Cement Newsletter

Issue: GCW698 / 26 February 2025

Headlines


The European Union (EU) is set to launch its Green Deal Industrial Plan, today, on 26 February 2025. It is the latest plan to help industry in the region reach net zero whilst remaining competitive. Key parts of the scheme that have been seen by the media include support for industries facing high energy prices, tax breaks for decarbonisation projects, simplifying the cross border adjustment mechanism (CBAM), linking funding for industrial CO2 cutting more directly to revenue gathered from the emissions trading scheme (ETS) and revamping procurement rules.

Cembureau, the European cement association, presented its comments on the impending announcement earlier this week. On CBAM it said that more work was required on exports, “such as export adjustment or continued free allowances for exported goods through the application of the destination principle which merits more in-depth analysis and discussion as to its WTO compatibility.” On financing it called for 75% of ETS taxation on the cement sector to be funnelled straight back again in the form of a cement decarbonisation fund. On infrastructure it called for competitive access to low-carbon energy sources such as thermal biowaste and electricity. It also lobbied for the rapid-development of CO2 pipelines and storage sites. Finally, on lead markets it asked that concrete carbonation and CO2 use in construction materials be recognised as a carbon sink and that carbon capture and utilisation using CO2 from industrial sectors be acknowledged through a review of the CO2 accounting rules in the ETS.

Lobbyists from the other side of the argument, also ahead of the official unveiling of the Green Deal Industrial Plan, took a dim view of the ETS. A report published by Carbon Market Watch and WWF called for greater scrutiny to be placed on the scheme. Its argument is that the “current architecture of the EU ETS continues to reward heavy polluters by granting them free allowances instead of incentivising emissions reductions.” Holcim, Heidelberg Materials and Cemex were each singled out as having received more free allowances under the ETS than the actual emissions they were responsible for in 2023. The report also reflected the growing environmental backlash against carbon capture and utilisation and/or storage (CCUS). In its view the money from the ETS going into the Innovation Fund should be directed at schemes that directly reduce emissions, not at CCUS projects, although it did concede that the cement and lime industries were some of the few sectors that should be allowed funding towards CCUS. This may be a point for the cement sector to watch for in the future if there ends up being a wider backlash against CCUS in general.

The Carbon Market Watch-WWF case is that the cement sector (and others) have received far too many free allowances in the ETS for far too long. The authors admit that the allowances are set to fall fast, to 2034, as the CBAM comes in but they don’t think that anywhere near enough has been done. This has not been helped over the years by news stories occasionally emerging of idled cement plants appearing to make money from emissions allowances. These occurrences date back to the drop in production following the financial crash in 2008 but there have been more recent examples.

Graph 1: Allowances and emissions from clinker production from the emissions trading scheme in the European Union, 2017 - 2023. Source: EU Transaction Log (EUTL).

Graph 1: Allowances for and emissions from clinker production from the emissions trading scheme in the European Union, 2017 - 2023. Source: EU Transaction Log (EUTL).

As Graph 1 above shows the environmentalists may be overstating their point on the ETS given that emissions were higher than the free allocation in 2018, 2019, 2021 and 2022. Roughly speaking, both the allowances and emissions by the cement sector from clinker production have been dropping since 2017 and further back to the mid-2000s. The system is intended to squeeze emissions but it doesn't take into account short-term variations in market conditions. Cembureau data shows that production rose in 2021. Sure enough, emissions jumped above the allocation. Although the cement production data is yet to be released for 2023, it is looking fairly likely that it will have decreased. Hence, emissions have fallen below the allocation level.

Few are likely to be happy with the EU’s Green Deal Industrial Plan. For producers, it is unlikely to add sufficient support against the additional ‘green’ cost burden. For environmentalists, it doesn't go far enough. The usual equilibrium for EU sustainability legislation is aiming at the target of net-zero without killing industry. The current US administration has further tipped this balancing act with its threats to fight against CBAM and the like with trade tariffs. Tom Lord, Redshaw Advisors described the EU ETS as a political construct at the Global FutureCem Conference that took place in February 2025 in Istanbul. This also applies to the EU’s green legislation (like any laws). Subsequently, certainty is a word that crops up frequently in discussions about EU green policies. Can EU industry be certain that these political constraints remain should circumstances change? With the ETS allowances dropping, CBAM coming and industry facing higher energy prices than its competitors, we’re about to find out how committed the EU is on net-zero and who the winners and losers will be.


China: China Tianrui Group Cement has appointed Li Liufa as its chair. He succeeds Li Xuanyu in the role, who has resigned due to “other work commitments.”

Li Liufa is the founder of Tianrui Group. He has been a non-executive director of China Tianrui Group Cement since 2011 and became a member of its nomination committee in 2018. He is responsible for our group’s overall strategic planning and the management of its business. Li was the head of Shanshui Cement from 2015 to 2018. He has also held representative positions for Henan province to the National People’s Congress on a number of occasions between 2003 to 2018. Li holds an executive master of business administration from Peking University. Li Liufa is the father of Li Xuanyu.


Thailand: The ASEAN Federation of Cement Manufacturers (AFCM) has elected Chana Poomee as its president for a two year term from 2025 to 2027. He succeeds Yeoh Soo Keng in the role. Poomee has been the chair of the Thai Cement Manufacturers Association (TCMA) since 2022 and was re-elected in 2024 until 2026. He is also the chief sustainability officer of Siam Cement Group (SCG).


US: Heidelberg Materials North America has begun test well drilling at its Mitchell cement plant in Indiana as part of the CarbonSAFE carbon capture and storage (CCS) project led by the Illinois State Geological Survey (ISGS).

The drilling started on 22 January 2025 to assess the geology beneath the plant, which is located in the Illinois Basin, for CO₂ storage potential. The test will evaluate three carbon storage formations to a depth of 2210m to determine if the site can safely store 50Mt of CO₂ over 30 years.

The project began in early 2023 with seismic data collection across 87km of roadways, leading to the installation of the geologic test well.

Greg Ronczka, vice president of Carbon Transport & Storage Development said "This is an exciting step for the project as we learn which potential formations may be suitable to permanently and safely store the CO₂. This knowledge will help us design the injection and observation well network and allow us to prepare a complete and accurate US Environmental Protection Agency Class VI permit application."


India: Star Cement will build a US$367m integrated cement plant in Assam.

The producer signed a memorandum of understanding with the state government on 26 February 2025, the final day of the Advantage Assam business summit. The summit attracted 164 investment proposals across 15 sectors on its opening day.


India: UltraTech Cement's board has approved the separation of Kesoram Industries' cement business, effective from 1 March 2025. Under this plan, Kesoram Industries cement business will join UltraTech Cement.

The producer will issue one equity share of US$0.11 for every 52 Kesoram Industries shares. The merger will increase UltraTech Cement's production capacity by 7Mt/yr. The companies' boards first approved the merger on 30 November 2023, with the demerger previously scheduled for November 2024.


Mexico: Holcim México has mitigated 1.7Mt of CO₂ emissions in housing and infrastructure projects throughout the country in 2024, according to a press release, through its ECOPact, ECOPlanet and ECOCycle sustainable products.

Holcim’s ECOPact low-carbon concrete reduces CO₂ emissions by at least 30% and represents 15% of its concrete sales, with a target of 27% by 2027. Its ECOPlanet cement range reduces CO₂ emissions by 35-65% relative to traditional blends and accounts for 56% of cement sales, with a target of 77% by 2027. ECOCycle technology incorporates recycled construction and demolition materials into concrete for non-structural applications like pavements.


Turkmenistan: Lebap cement plant produced 112,000t of cement in January 2025, up by 72% year-on-year, according to Trend.

The producer said that it has implemented ‘modern technologies’ to ensure a steady supply of cement for construction, and uses local raw materials to decrease prices. It reportedly exported 108,000t of cement to Uzbekistan in 2023.


Myanmar: A vessel carrying 3000t of cement has arrived at Mottama Port, following the government's decision in January 2025 to permit cement imports in an effort to meet domestic demand for cement.

The shipment arrived on 21 February 2025 via the Kawthaung Border Trade Station to be distributed. Additional cement shipments will arrive weekly to address the domestic shortage, according to NP News. Myanmar's cement demand is reportedly 10Mt/yr, while domestic production is below 8Mt/yr.


Vietnam: Cement and clinker exports fell by 37% year-on-year to 2Mt in January 2025, according to the General Statistics Office (GSO). Exports were worth US$76m, a fall of 36% year-on-year. The decline has continued a downward trend that began in early 2022, with trade barriers in key markets such as the Philippines and Taiwan restricting exports, according to local news reports. The 10% export tax on clinker, imposed in 2023, has also added to industry challenges. The Ministry of Construction submitted a report in January 2025 to the Prime Minister, warning of potential cement plant closures.


Pakistan: Cement exports rose by 5% year-on-year to US$188m in the first seven months of the 2024 financial year, while volumes increased by 35% year-on-year to 5.27Mt, according to the Pakistan Bureau of Statistics (PBS).

The country's cement exports grew by 40% year-on-year to US$20.6m in January 2025, but fell by 35% month-on-month from US$31.9m in December 2024. This suggests strong international demand, accompanied by short-term fluctuations in global shipments.


Global: Global Cement and Concrete Association (GCCA) has launched the Innovandi Open Challenge 2025, inviting start-ups to wok together with cement manufacturers around the world in developing low carbon concrete technologies.

The Open Challenge is looking for start-ups working on next generation materials for net zero concrete, including low-carbon admixtures, supplementary cementitious materials, activators or binders. The challenge aims to find ways to reduce clinker use and incorporate new materials to lower CO₂ emissions.

The programme follows three previous Open Challenges.

Chief executive Thomas Guillot said "Advanced production methods which are decarbonising our sector are already being used in cement and concrete production in many parts of the world. Through the Innovandi Open Challenge, start-ups can bring in even newer ideas and further accelerate our industry's push."

“If you are a start-up from anywhere in the world with an innovative idea or technology, then we want to hear from you."

Start-ups can find more information and apply to take part in the Innovandi Open Challenge by going to the GCCA Open Challenge 4 webpage: Innovandi Open Challenge 4 : GCCA


Belgium: Gebr. Pfeiffer has received an order for an MVR 5000 R-4 vertical roller mill. The mill is intended for a new 4800t/day line at Holcim Belgique's Obourg cement plant, the site of the GO4ZERO decarbonisation project.

The mill will grind 370t/hr of cement raw material to a fineness of ≤15%R to 0.090mm and reduce moisture content from 4% to <0.7%. The mill is expected to reduce both emissions and specific operating costs.

Chinese contractor CBMI is managing the installation, with commissioning planned for the second half of 2025. The mill will be integrated into the plant's oxyfuel operations to achieve efficiency in the CO2 capture process.


India: Adani Group will invest US$3bn in Kerala over the next five years. The group will reportedly develop a logistics and e-commerce hub in Kochi and expand its cement capacity in the city.

The producer has already invested US$577m in developing the Vizhinjam port, and according to Adani Ports managing director Karan Adani, the company is investing an additional US$2.3bn.


Brazil: The Administrative Council for Economic Defence (CADE) has convicted two individuals for operating a cartel in the Brazilian cement sector and ordered them to pay fines of US$1.75m.

The investigation began in 2016, stemming from a wider probe into a Brazilian cement sector cartel. The individuals exchanged emails and attended meetings to allocate market share and manipulate public procurement prices to restrict competition and entry of new competitors in the market.


Kyrgyzstan: Cement production rose by 20% year-on-year to 118,000t in January 2025, according to the National Statistical Committee.

The country's cement production increased by 4% year-on-year to 3.1Mt in 2024. Cement imports rose by 120% to 0.5Mt.


Denmark: FLSmidth's cement revenues fell by 26% year-on-year to US$616m in 2024.
Cement gross profit fell by 3% to US$204m. The producer attributed the decline to divestments and withdrawal from project-orientated business.

Group revenues, including both the Mining and Cement businesses, fell by 16% year-on-year to US$2.8bn. Group gross profit rose by 8% year-on-year to US$905m.

The company said that it expects the short-term outlook for the cement industry to remain impacted by ‘macroeconomic uncertainty’.


Brazil: Buzzi subsidiary Cimento Nacional has signed a 15-year power purchase agreement with renewable energy provider Casa dos Ventos for 65MW/yr of wind power from the 756MW Serra do Tigre and 360MW Babilonia Sul wind farms. The agreement will supply 100% of the producer's electricity requirements in its Brazilian facilities.

The Serra do Tigre wind farm is currently under construction in Rio Grande do Norte, but the Babilonia Sul wind farm is operational in Bahia.


US: Terra CO2 has raised US$82m in Series B funding from investors including Eagle Materials, GenZero and Just Climate. The company will build its first commercial facility in Dallas-Fort Worth, Texas, in partnership with Asher Materials.

With the help of Eagle Materials, the company will establish multiple 240,000t/yr plants across North America. The US Department of Energy has also awarded Terra CO2 with a grant of US$52.6m for a second commercial facility. The producer has begun concrete trials of its Opus Zero cement-free product, designed to completely replace ordinary Portland cement in concrete. It will complete a second funding round in the first quarter of 2025.

“This strategic funding from the world’s leading climate funds and industry partners validates our approach to practical cement decarbonisation at commercial scale,” said Bill Yearsley, CEO of Terra. “As we break ground on our first full-scale plant in Texas, their support enables us to accelerate deployment across North America and establish an early footprint in Europe.”


Taiwan: The Ministry of Finance has issued preliminary findings in its anti-dumping investigation into Vietnamese cement and clinker, confirming that Vietnamese firms engaged in dumping. Six out of 21 investigated producers had dumping margins of 16 - 20%, while others faced a margin as high as 24%. Long Son Cement recorded the lowest margin at below 17%, the only producer below the level initially alleged by the Taiwan Cement Manufacturers Association.

The Ministry of Economic Affairs has not imposed provisional duties due to lack of evidence of ongoing damage to domestic producers. The investigation began in August 2024 and will now continue its final phase.


Morocco: Cement sales rose by 14% month-on-month to 1.28Mt in January 2025, according to the Ministry of National Land Planning, Urbanism, Housing, and City Policy. The ministry said in its monthly report that sales directed to distribution reached 707,000t.