Global Cement Newsletter

Issue: GCW700 / 12 March 2025

Headlines


There are two new cement plant stories to note in Nigeria this week. Firstly, the Kebbi State Government has signed an agreement with MSM Cement to build a 3Mt/yr plant. Secondly, drilling work has started on a forthcoming 10Mt/yr plant to be built by Resident Cement in Bauchi State.

The project in Kebbi State appears to be a new one, although the government has been looking for investors for a while. The state government and a subsidiary of MSM Group have signed a memorandum of understanding (MOU) supporting the US$2.4bn initiative, according to local press. Alhaji Muazzam Mairawani, the chair of MSN Group, said that his company intends to develop the plant in four stages, each worth US$600m. The first stage has a schedule of production by early 2027. MSN Group started out in the fertiliser business and has since expanded into the oil and gas, shipping and agricultural sectors.

The project in Bauchi State has progressed further along and is bigger. The state government signed an MOU worth US$1.5bn with Resident Cement in mid-2024. The deal also includes a 100MW power plant, a dam and other amenities for the local community. Before the main announcement of the MOU, local press reported that Sinoma Nigeria Company was investing in the project. Subsequently, Bala Mohammed, governor of Bauchi State, said that the state owns a 10% stake in the plant.

These two new project stories follow the release of the annual reports for 2024 in recent weeks by the main cement producers in Nigeria. Global Cement Weekly touched upon this last week in its coverage of the results of major multinational building materials companies including Dangote Cement. That company’s sales revenue and earnings were boosted by growing sales volumes of cement in Nigeria. This was particularly impressive given that the country continues to face economic problems including high inflation and negative currency exchange effects. Dangote Cement said it managed to overcome these problems through “increased promotional activities and improved route to market solutions” thereby upping the market presence of its products. The company also managed to grow its exports to a record amount. It shipped 0.91Mt of clinker to Cameroon and Ghana out of a total export volume of 1.2Mt.

Graph 1: Sales revenue for large cement producers in Nigeria, 2023 - 2024. Source: Company financial reports. 

Graph 1: Sales revenue for large cement producers in Nigeria, 2023 - 2024. Source: Company financial reports.

It was a similar story from the two other large domestic cement companies. Lafarge Africa’s net sales grew at a similar rate to Dangote Cement in 2024 and it increased its profit after tax faster. Lolu Alade-Akinyemi, the CEO of Lafarge Africa, attributed this to the company’s “strong market positioning, operational efficiency, cost management and dedication to value creation.” BUA Cement grew its sales faster than the other two. Starting production on new production lines at its Sokoto and Obu plants is likely to have contributed to this. However, the company’s net profits rose at a lower rate than its competitors in 2024. This has been blamed on the poor market at the start of the year and negative currency exchange effects related to the loans that the company took out for its new lines.

Lafarge Africa ending on a high with its 2024 results is not surprising given that the company is currently being sold by Holcim to Huaxin Cement. The transaction is expected to close at some point in 2025. Huaxin Cement issued an update at the end of February 2025 saying that its accountants had been auditing the financial statements of Lafarge Africa. It also noted the depreciation of the Nigerian Naira in 2023 and 2024. This is all fairly standard stuff but check back later in the year to see how the sale has progressed.

The cement market in Nigeria is looking positive. New plants are on the way, the large cement producers are doing relatively well and the general economy may be improving. New entrants are also entering the market. However, consumers and legislators have increasingly questioned why the price of cement has remained so high in recent years. This continues to present a tricky situation to the market as it develops.


Austria: Alpacem Group has appointed Roland Waldenhofer as Head of Development, Quality Assurance and Application Technology of Alpacem Zement Austria. He succeeds Christoph Stotter in the post, who has been working for the group as Quality and Product Innovation Manager since 2024.

Waldenhofer, aged 30 years, trained as a civil engineer at Graz University of Technology. He previously worked for Rohrdorfer as Head of the Sand & Gravel Laboratory and
Head of the Central Laboratory & Technology Projects.


US: Cement shipments fell by 6% year-on-year to 103Mt in 2024 from 109Mt in 2023. Data from the United States Geological Survey (USGS) shows that domestic shipments of Portland and blended cement decreased by 6% to 82.9Mt from 88.2Mt. However, imports only dipped slightly to 19.8Mt. Particular declines in shipments were recorded in the north-east and Texas. Türkiye remained the biggest source of imports in 2024 (7.16Mt), followed by Canada (4.85Mt), Vietnam (4.17Mt), Greece (1.82Mt) and Mexico (1.32Mt). Clinker production dropped by 7% to 71.6Mt from 76.8Mt.


Italy: Cementir recorded a 0.4% year-on-year decrease in sales revenue to €1.687bn from €1.694bn in 2023. This was reportedly widespread across all geographical areas except Türkiye and Sweden, driven by lower volumes in some regions and the depreciation of the Turkish Lira and Egyptian Pound. Group earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 0.9% to €407m from €411m in 2023. Net profit rose by 0.1% to €201.6m from €201.4m. The group sold 10.72Mt of grey and white cement and clinker in 2024, up by 0.5% year-on-year from 10.67Mt in 2023. According to the group’s financial report, this was due to good trading in Türkiye and to a lesser extent in the US and Egypt, which offset the volumes reduction in other areas.

Francesco Caltagirone, chair and CEO, said “2024 has been another satisfactory year for our group, which demonstrated remarkable resilience despite the complex geopolitical and macroeconomic backdrop. We are preparing to face the next three years with a strengthened industrial footprint, thanks to the upgraded Kiln 4 in Belgium, the second production line in Egypt, and the opportunity to completely decarbonise our Aalborg plant by 2030 with a limited investment. We look forward to the challenges ahead with renewed confidence.”


Europe: 77 decarbonisation projects (including 14 for the cement sector) have signed grant agreements under the Innovation Fund 2023 Call (IF23), following the announcement of results in October 2024. The cement projects, spanning nine European countries, will begin operations between 2025 and 2029.

The funding, sourced from the EU Emissions Trading System, provides grants ranging from €4.4m to €234m, supporting projects expected to avoid 118Mt of CO₂. The total 77 projects funded have the potential to reduce emissions by around 398Mt of CO₂ equivalent over their first 10 years of operation. The projects funded in the cement industry mostly involve carbon capture and storage (CCS). Among the selected CCS projects are Carbon2Business in Germany, Olympus in Greece, Go4Zero in Belgium and Cementir’s Accsion project in Denmark.


UK: Breedon has replaced the Traylor primary gyratory crusher at its Hope Cement Works after 72 years of operation. According to a post on Facebook by Breedon, the original crusher had been in service since 1952, crushing over 110Mt of minerals during its 72-year lifespan. FLSmidth supplied the new 1250t/hr primary gyratory crusher, which was successfully commissioned in October 2024.


Slovakia: Slovak cement plants recovered 374,000t of alternative fuels made from waste in 2024, replacing 75% of heat from fossil fuels, according to the Cement Manufacturers Association (ZVC) of the Slovak Republic. This has reportedly saved almost 230,000t of coal and reduced the cement plants’ carbon footprint.

Director of ZVC Rudolf Mackovic said “Instead of waste, such as non-recyclable plastics, being deposited in landfills without being used, it is processed into fuel in processing plants. Such an alternative fuel meets strict quality and ecological parameters.”


Sierra Leone: MACCEM will build a 0.56Mt/yr cement grinding plant in Hastings, Freetown, on a 4.4-hectare site near the Hastings Airstrip and the Jui-Masiaka Highway, according to the International Finance Corporation (IFC). The site already houses the producer’s cement bagging plant, with civil works for the grinding plant underway. Site clearing and levelling were completed in July 2024. The remaining construction is expected to take 12-15 months.

Clinker for the plant will be imported and transported by road from the Queen Elizabeth II Quay at the Port of Freetown. The IFC is considering a debt financing package of up to US$24m.


India: JK Lakshmi Cement (JKLC) has signed a memorandum of understanding with the Assam government at the Advantage Assam 2.0 Investment and Infrastructure Summit.

JKLC will invest US$1.2bn over the next seven to eight years to build a greenfield cement plant.


Jamaica: Caribbean Cement Company (CCC) recorded a net profit of US$37.6m in 2024, slightly up from the previous year, according to Loop News. Hurricane Beryl reportedly caused some disruptions in the second half of the year, but rising construction demand drove a 2% rise in revenues to US$178m.

Looking ahead, CCC remans optimistic about its growth, citing further opportunities from private sector projects, government infrastructure initiatives and Jamaica’s expanding hospitality industry.


Algeria: Holcim El-Djazaïr has completed its first export shipment from the Port of Béjaïa, sending 50,000t of grey cement to North America. More shipments will follow throughout the year, according to a post by the producer on Linkedin.


Ghana: At a recent stakeholder meeting, Minister for Trade, Agribusiness and Industry Elizabeth Ofosu-Adjare instructed the Ghana Standards Authority (GSA) to shut down cement companies that produce substandard products, according to Adom Online.

“Close down companies that are defaulting with substandard products to stop production until they can prove they can consistently produce quality products,” Ofosu-Adjare said.

She added that price should not be used to justify poor quality cement and warned of the risks posed by substandard materials in public buildings like hotels. She pledged to conduct regular inspections of cement plants to enforce compliance.

The Cement Manufacturers Development Committee Regulation L.I. 2480 and the GSA Act 2022 allow the Minister and the GSA to revoke licences and halt the sale of non-compliant cement.


Nigeria: The Kebbi State Government has signed a memorandum of understanding with MSM Cement to build a cement plant with a production capacity of 3Mt/yr. MSM Cement has pledged to create approximately 45,000 direct and indirect employment opportunities through the project.

According to The Nation Online newspaper, the cement plant will be developed in four phases, with each cluster attracting over US$600m in investment. The chair of MSM Group, Alhaji Muazzam Mairawani, said that production will commence within two years, adding that MSM plans to expand to other states after Kebbi. The strategic location of the plant near the border allows it to take advantage of exports under the African Continental Free Trade Agreement (AfCFTA).


Canada: Heidelberg Materials North America has secured government support from Innovation, Science and Economic Development Canada (ISED) for its carbon capture, utilisation and storage (CCUS) project at its Edmonton cement plant in Alberta. The project aims to capture over 1Mt/yr of CO₂.

In 2023, the Minister of Innovation, Science and Industry signed a letter of intent to contribute US$191m to the project, with US$34m already allocated for phase one. The remaining US$157m will be finalised through a phase two agreement to support the construction of the CCUS system and a combined heat and power (CHP) facility. The funding has been earmarked under the Strategic Innovation Fund (SIF) and is contingent on Heidelberg Materials making its final investment decision.

“This groundbreaking partnership with Heidelberg Materials takes us one step closer to a net-zero Canada by 2050,” Minister of Innovation, Science and Industry François-Philippe Champagne said. “By building North America’s first carbon capture system in cement, we’re driving innovation, cutting emissions and securing a sustainable future.”


India: Ambuja Cements will invest US$286m in two cement carriers and eight clinker carriers. The company expects to finalise a shipbuilding contract within 15 days, with Cochin Shipyard and Swan Defence and Heavy Industries under consideration.

Each 38,500t Handymax cement carrier will cost US$45.8m, while each 9200t clinker carrier will cost US$22.9m. The clinker carriers will have a 30m beam, 4m draft and 150m length, increasing cargo capacity from the traditional 3000t to 9200t per trip.


Nigeria: ABC Transport has expanded its trucking capacity with a new fleet of heavy-duty bulk cement carriers. This follows the company's introduction of compressed natural gas trucks to improve cement haulage for Lafarge Africa. The new vehicles will transport cement from Lafarge's plant to construction sites nationwide, increasing ABC Transport’s bulk cement delivery capacity to 150,000t/yr.

The company has also acquired a site near Lafarge’s Cross River cement plant to streamline truck maintenance and turnaround efficiency.


India: Dalmia Cement (Bharat) will procure 10MW of solar power from Kilavikulam Rajalakshmi’s captive plant in Tamil Nadu. The producer will also acquire a 35% equity share in the solar power developer.

Kilavikulam Rajalakshmi is a special purpose vehicle for the 10MW solar project. Dalmia Cement said the acquisition will increase its renewable power supply as part of its commitment to RE100 by 2030 and becoming carbon negative by 2040.


Germany: Heidelberg Materials has reported stable group revenues of €21.2bn in 2024, with its result from current operations (RCO) rising by 6% year-on-year to €3.2bn. Geographically, revenues remained steady at €9.5bn in Europe, increased by 2% year-on-year in North America to €5.3bn, declined by 4% in the Asia-Pacific region to €3.5bn, and remained stable at €2.3bn in the Africa-Mediterranean-Western Asia region.

The company states that it is ‘optimistic’ about the current year, and expects demand to stabilise in 2025, forecasting a RCO of €3.25bn - 3.55bn. It will release its full annual report at the end of March 2025.


North Korea: The Sangwon Cement Complex has appealed to smaller cement plants to boost production for major government projects, despite a lack of raw materials and electricity, according to Radio Free Asia.

The ‘vaguely written’ appeal, issued in early February 2025, states the urgent need for cement to complete government housing projects and rural development initiatives, but does not specify how production should increase. One of the projects listed is the Pyongyang housing project, which aims to build 10,000 new homes per year, and a total of 50,000 by the end of 2025.

A resident said “The Sangwon Cement Complex is affiliated with the central committee. Its electricity and raw materials are fully provided by the central party. How can the appeal demand increased cement production from local cement companies when there is no electricity or limestone?”

Another resident noted that most construction is being carried out by military labour units but cement shortages are forcing builders to cut corners, with most rural houses reportedly built from soil mixed with clay, lime, and decomposed granite. Though the appeal came from the Sangwon Cement Complex, residents see it as an implicit order from Kim Jong-un’s government. In the past, citizens were forced to gather sand and gravel for public projects, and some fear this order could have the same effect.


Philippines: Taiheiyo Cement Philippines has informed the government of its plans to improve its distribution system in Luzon, the Department of Trade and Industry (DTI) said.

The company has doubled the capacity of its US$224m Cebu facility from 50,000 bags/day to 100,000 bags/day. Additionally, it is constructing a distribution terminal in Calaca, Batangas, to better serve Luzon, which accounts for 64% of national cement demand.

"Once operational, this new facility will streamline logistics, optimise supply chain efficiency and ensure timely delivery of cement to this critical region," the DTI said.


Uzbekistan: The country's cement companies produced 0.85Mt of cement in January 2025, according to the national Statistics Agency. Cement production increased by 35% year-on-year. In 2023, Uzbekistan produced 0.26Mt and in 2024 it produced 0.63Mt.


Vietnam: Cement production reached 22.7Mt in the first two months of 2025, up by 7% year-on-year, according to the General Statistics Office (GSO). In February 2025, the country produced 11.3Mt of cement, marking a 24% increase compared to the same month in 2024.

In 2024, Vietnam produced 184Mt of cement, reflecting a 4% rise year-on-year based on revised figures.


Nigeria: Bauchi State Government, in partnership with Resident Cement, has commenced work on a US$1.5bn cement plant in Diji Village, Gwana District, Alkaleri Local Government Area, according to Arise News.

Resident Cement Group Chairman Abbas Junaid stated that limestone deposits in the area are sufficient to sustain a 10Mt/yr capacity plant for 100 years. The company has begun drilling and will deploy four rigs to complete the project within two months, with full construction of the plant to begin in three months.


Saudi Arabia: City Cement recorded a 76% increase in net profit to US$38.4m in 2024, up from US$21.9m in 2023. The company’s revenue grew by 46% year-on-year to US$139m, compared to US$95m in 2023. The increase in sales was attributed to higher sales volumes and an increase in average selling prices. For the first nine months of 2024, City Cement reported a net profit of US$27.4m and revenue of US$96.3m.


Canada: Progressive Planet has secured up to US$3.2m in funding from Sustainable Development Technology Canada (SDTC) to support the construction of a pilot plant for PozGlass, its low-carbon supplementary cementitious material (SCM) made from post-consumer glass. The funding will be distributed over four years, with the first tranche of US$1m received on 31 January 2025.

"PozGlass is our solution to reducing the carbon footprint of cement production. This funding allows us to innovate, reduce emissions and create value from post-consumer glass, a material that has been historically misallocated and considered waste," said Progressive Planet CEO Steve Harpur.

Progressive Planet signed a purchase agreement with Lafarge Canada in June 2023 for all PozGlass produced at the pilot plant, up to a maximum of 3500t/yr. Under the agreement, Lafarge Canada will provide technical guidance and support for the plant’s design, construction and operation.


Sweden: Swedish cement manufacturer Cemvision has entered a strategic partnership with Norway-based residential developer JM to develop ‘climate-friendly’ cement and concrete. As part of the agreement, JM has also acquired a minority stake in Cemvision.

Cemvision’s cement reportedly reduces CO₂ emissions by up to 95% compared to traditional cement, through the use of recycled industrial waste from mining and steel industries, combined with renewable energy in its kiln operations.


Peru: National cement despatches reached 0.99Mt in January 2025, down by 2% compared to January 2024 and by 0.7% in the 12-month cumulative period, according to ASOCEM. Cement production declined by 6% year-on-year to 0.87Mt, while clinker production dropped by 30% to 0.59Mt. Over the 12-month cumulative period, cement production fell by 3% and clinker production declined by 9%.

Cement exports reached 10,200t, down by 2% year-on-year and by 5% in the 12-month cumulative period. Clinker exports increased significantly, by 122% to 73,600t in January 2025, but were down by 18% in the cumulative period.

Cement imports rose by 63% year-on-year to 50,000t in January and by 23% in the 12-month period. Clinker imports fell by 29% to 44,000t in January but increased by 28% in the cumulative period.