Global Cement Newsletter

Issue: GCW707 / 30 April 2025

Headlines


Anhui Conch Cement held an event in Wuhu, China, this week showcasing its new artificial intelligence (AI) model for the cement sector. The cement company and Huawei started the project in April 2024 with the support of the China Building Materials Federation. The companies say they have now identified over 200 “promising AI application scenarios across 15 categories” across the entire production process from quarrying to packaging and logistics. Conch has set up an AI training centre using the Huawei Cloud Stack product. It is using Huawei’s Pangu prediction, computer vision (CV) and natural language processing (NLP) models to create an AI operating system that integrates central training, edge inference, cloud-edge synergy, continuous learning and ongoing optimisation.

Thankfully Huawei gave some examples of what this actually meant for operators in the real world. The model is able to give real-time recommendations of key quality features enabling the prediction of three-day and 28-day clinker strength. The predicted strength values closely match test results, with deviations within 1MPa and an accuracy rate exceeding 85%. Other benefits include reducing kiln fuel consumption by 1%, monitoring and managing various components and machines along the production line, staff safety gains and creating a ‘smart digital assistant’ that can answer technical questions from employees.

Little of this seems particularly novel, so far, compared to what other companies are already doing in this field. For example, ABB said in early 2022 that it was using machine learning to predict 28-day strength on the day of sampling and in 2023 that it was doing it using production data provided every two - three hours. Another example is the work that Inform does using AI-based software to support logistics for heavy building materials. Plenty of other western-based companies also offer production optimisation and/or predictive maintenance products.

Conch’s use of an NLP model to create a knowledge base assistant does seem new for the cement sector. Although how specific the software running it might be to one business or industrial area remains to be seen. One could easily imagine this kind of product being sold to lots of different kinds of industries in the manner of current enterprise style software. Along these lines though, Juan Beltrán, digital manager of global sales excellence at Holcim, told McKinsey in an interview about Holcim’s pilot project in Spain testing an AI-enabled copilot customer-ordering assistant via WhatsApp.

Recent events in AI for the cement sector include ABB’s agreement to work with UK-based Carbon Re in late 2024. This collaboration was intended to combine ABB's expertise in automation and process control with Carbon Re's AI and machine learning technologies. It followed a pilot at a cement plant in the Czech Republic. On the producer side, Holcim said in mid-2024 that it was preparing to expand the use of AI-based software to 100 production plants by 2028. It noted that it had installed the system at 45 plants so far at the time of this announcement and that it was using a predictive maintenance solution from software supplier C3 AI. Titan Cement said that it had invested in Spain-based AI software supplier Optimitive in February 2025. Then, Cemex announced this week that it too had invested in Optimitive, via its corporate venture capital arm Cemex Ventures. Molins has also worked with Optimitive.

What isn't being disclosed much are the examples of the mistakes of introducing AI into cement production. These are valuable learning opportunities for any company implementing this kind of software. However, the developers and cement producers are extremely unlikely to admit anything publicly. Global Cement Weekly has heard off-the-record information previously about AI projects at cement plants that have gone wrong but we can’t reveal it either. To his credit though Beltrán mentions an incident, in his interview with McKinsey, where the WhatsApp ordering assistant was tricked during testing into almost placing an order for a truck of gazpacho soup!

We’re still watching how AI is being deployed in heavy industries such as cement. The announcement by Conch is exactly the kind of thing its peers are doing around the world. So far what they’ve done is impressive but not unique. Yet, China’s large but shrinking cement sector and its determination to develop its own AI-based software sector may start to deliver more cutting-edge advances in the future. Companies elsewhere are also pressing ahead to find out how AI products will deliver efficiency gains.


Canada: Lafarge Canada has appointed Edgardo Rivas as the plant manager of its Brookfield cement plant in Nova Scotia.

Rivas previously worked as a Maintenance Manager for Lafarge Canada from 2023. Before this he held maintenance and engineering roles for Cementos Argos in Honduras from 2015 to 2023. Notably, he was the plant manager of the Río Blanquito grinding unit from 2017 to 2023. Before this, he held positions with Industria Venezolana de Cemento in Venezuela from 2009 to 2015. Rivas holds an undergraduate degree in mechanical engineering from the Universidad Simón Bolívar.


Dominican Republic: Sinoma CBMI Latin America has celebrated the completion of the PANAM cement project in the Dominican Republic. The project involved construction of a ‘modern’ cement grinding plant for Cemento PANAM, part of Grupo Estrella. According to a post on social media by Sinoma, the plant has a production capacity of 1.23Mt/yr, and integrates ‘advanced, carbon-neutral technologies’ to reduce environmental impact. The plant features a Gebr. Pfeiffer vertical roller mill with a capacity of 155t/hr of cement.


US: Eco Material Technologies has announced the opening of the Blissville Rail Terminal in Queens, New York. The new terminal will enable Eco Material to distribute approximately 50,000t/yr of fly ash from its national network to support local infrastructure projects in the New York metro area. The terminal will utilise rail transportation to deliver fly ash and cementitious materials, which the company says can replace up to 25% of carbon-intensive Portland cement in standard concrete mixes, with Eco Material's technologies reportedly allowing for up to 100% replacement in select applications.

"The opening of the Blissville Terminal is a major step in our efforts to expand access to low-carbon cement alternatives in all major metro areas, " said Grant Quasha, CEO of Eco Material Technologies. "By strengthening our presence in New York, we can better serve future infrastructure projects with innovative materials that reduce reliance on traditional Portland cement and imported steel slag.”


China: According to China Cement Net, Chongqing Tongliang Southwest Cement has inaugurated a 7300t/day (2.25Mt/yr) clinker production line. The company previously operated a 2500t/day (0.75Mt/yr) and a 4800t/day (1.55Mt/yr) clinker line, which will be relocated.


Myanmar: Authorities are working to expedite the reopening of cement plants in Kyaukse, Mandalay Region, following the earthquake in late March 2025, according to the Global New Light of Myanmar newspaper. Kyaukse District administrator U Kaung Myat Naing said that one plant expects to resume supplying 100,000 bags of cement per day by mid-May 2025. The reopening of cement plants will help to meet the growing demand in the country.


Puerto Rico/Turks & Caicos: Cementos Argos has successfully shipped 1335 bags of cement to Turks & Caicos from Puerto Rico, according to a social media post by the producer. The company said that the milestone demonstrates its ability to bring reliable and sustainable solutions to where they are needed.


India: UltraTech Cement reported consolidated net sales of US$2.67bn in the fourth quarter of the 2025 financial year, up from US$2.35bn year-on-year. Profit before interest, depreciation and tax rose to US$554m from US$498m, while profit after tax grew to US$291m from US$265m.

Consolidated sales volumes reached 41Mt for the quarter, growing by 17% year-to-year. Capacity utilisation was 89% during the quarter and 78% for the full year. UltraTech commissioned 17.4Mt/yr of capacity during the period, raising its domestic grey cement capacity to 183Mt/yr and its global capacity to 188.76Mt/yr.

The company achieved 1GW of renewable power installations, which it says makes it the first industrial company in India to commission 1GW of renewable capacity for captive use. It added 269MW of renewable power during the quarter, bringing its total renewable energy capacity to 1.363GW, including waste heat recovery systems. This covers 46% of Ultratech’s current power needs.


Nigeria: Dangote Cement recorded a profit after tax of US$131m for the quarter ending 31 March 2025, up by 86% from US$70.5m in the same period of 2024. Revenue rose by 22% year-on-year to US$623m, driven largely by strategic pricing initiatives in Nigeria, where revenue grew by 54%. Gross profit rose to US$368m from US$262m, while profit before tax increased by 87% to US$195m from US$104m. Group earnings by interest, taxation, depreciation and amortisation (EBITDA) surged by 49% to US$289m.

The group’s cement volumes declined by 7% to 6.6Mt during the quarter, reflecting reduced demand and heightened inflationary pressures across key markets. However, export volumes grew by 21%, supported by eight clinker shipments to Ghana and Cameroon.


Malaysia: The state government of Sabah has dismissed concerns over illegal logging, investor withdrawal and environmental risks related to the US$277m Tongod cement plant project.

Masiung Banah of the Sabah State Legislative Assembly said "There is no logging taking place. The quarry spans 200 acres [80.9 hectares], not thousands as claimed. The project has undergone thorough environmental assessments, including an Environmental Impact Assessment (EIA), to ensure compliance with regulations."

Masiung, also chair of Borneo Cement, said that the project is proceeding as planned and that site clearing had already begun, following the approval of the EIA, according to the Daily Express newspaper. He added that the 5000t/day plant in Kampung Kayawoi will address Sabah’s cement shortage, reduce prices through local sourcing and create up to 1000 jobs for local people, as well as improving roads, electricity and water supply in the region. The Sabah Energy Commission has reportedly agreed to supply 40% of the plant’s required electricity and a 26km access road will be built to transport materials.


Fiji: The Fijian Competition and Consumer Commission (FCCC) has assured the public that there should be no shortage of cement despite the temporary suspension of operations at Pacific Cement. CEO Senikavika Jiuta said FCCC is working closely with suppliers and monitoring the supply chain to prevent unfair practices.

Pacific Cement suspended operations on 21 March 2025 after its mill sustained mechanical damage. Repairs are underway and expected to finish by 27 May 2025. FCCC engaged with both Pacific Cement and Tengy Cement to conduct a market study, concluding that Tengy Cement’s increased production at its Suva and Lautoka plants will meet demand until Pacific Cement resumes full operations.


Mexico: Cemex reported a ‘record’ net income of US$734m in the first quarter of 2025. Net sales stood at US$3.65bn, down from US$3.94bn year-on-year, driven by higher consolidated prices partially offsetting lower volumes in Mexico. Earnings before interest, taxation, depreciation and amortisation (EBITDA) reached US$601m, compared to US$731m in the previous quarter.

In Mexico, sales reached US$981m, a 25% year-on-year decrease from US$1.31bn in the previous corresponding period. The US also recorded a slight decline in sales from US$1.2bn to US$1.19bn in the first quarter of 2025. The Europe, Middle East and Africa region recorded a 2% increase in sales from US$1.07bn to US$1.04bn, and the South, Central America and the Caribbean region recorded sales of US$314m, a 2% increase from US$206m in the first quarter of 2024.

Under new CEO Jaime Muguiro, Cemex plans to use its ‘Project Cutting Edge’ initiative to achieve yearly EBITDA savings of at least US$150m in 2025 and savings of US$350m by 2027.


Switzerland: Holcim reported stable net sales of €5.89bn in the first quarter of 2025, down by 0.8% year-on-year from €5.93bn. North America recorded a good start to the year despite unfavourable weather conditions, while Latin America delivered further profitable growth, driven by an 8% rise in local currency. Europe continued strong recurring EBIT growth and margin expansion, and Asia, Middle East and Africa recorded double-digit recurring EBIT growth, led by North Africa. Holcim expects the good momentum to continue with strong demand in North Africa, a positive outlook in Australia and price recovery in China.

Net sales of its low-carbon ECOPlanet cement represented 29% of cement sales, up from 26% year-on-year. Holcim said it is “well-positioned to navigate the current economic uncertainty” and confirmed its 2025 guidance of mid-single digit net sales growth in local currency.


Cambodia: The Cambodian government has approved the construction of a new cement plant on a 99-hectare site inside Prey Lang Wildlife Sanctuary, awarded in January 2025 to KP Cement. This decision comes despite a 2023 moratorium on new mining licences in Prey Lang to protect the forest and local ecosystem. Local newspaper Mongabay previously conducted an investigation into KP Cement, allegedly uncovering rampant deforestation at the company’s mine where limestone and marble are being excavated. It reports that documents published in the March 2025 edition of Cambodia’s Royal Gazette, which lists new laws and government announcements, show that a 50-year lease on a 99-hectare plot of land inside Prey Lang Wildlife Sanctuary was awarded to KP Cement on 13 January 2025.

The plant will source limestone from a nearby mine less than 1km away. Coal for the operation will be imported via Sihanoukville port and transported over 440km to the site. Local communities have expressed alarm over environmental degradation, health risks from limestone dust and being excluded from decision-making.


Oman: Raysut Cement is reactivating a partnership with China's Sinoma Overseas Development to launch Oman's first waste heat recovery (WHR) power plant at its Salalah site, according to the Oman Daily Observer. The groundwork for the 9MW facility was originally laid in 2018. Once operational, the facility is expected to reduce the plant’s reliance on national grid power by up to 30% and reduce CO₂ emissions by more than 50,000t/yr. Engineering design and site preparations are expected to be revisited before the end of 2025.


China: The China Building Materials Federation, Conch Group and Huawei have partnered to showcase their AI model for the cement industry. Conch Group and Huawei began constructing the model in April 2024 with federation support. Since then, they have identified over 200 AI application scenarios across 15 categories spanning the entire production process, from mining to shipment. The model can reportedly predict the strength of clinker with an 85% accuracy rate and can allow for a reduction in coal consumption.


Iraq: Prime Minister Mohammed Shia Al-Sudani has launched six industrial projects worth US$1.17bn in Muthanna province, including five cement plants. According to Iraqi News, Al-Sudani initiated commercial operations at the 6000t/day Najmat Al-Samawa Cement Plant 2, and launched construction of the Al-Arabi, Khairat Al-Muthanna and Al-Ittihad plants, each with a capacity of 6000t/day. The 6600t/day Al-Samawa cement plant has also commenced construction.

Al-Sudani said that the main objective of the current projects is to ‘secure the needs of the local market’ and stop imports. The government is reportedly constructing residential complexes in Baghdad and other provinces, where there are more than a million housing units. 200,000 housing units are also being built in seven large residential communities.


Global: The Global Cement and Concrete Association (GCCA) has launched the Low Carbon Ratings (LCR) system for cement and concrete, a new global rating based on products' carbon footprints. The system uses a clear AA to G scale to help customers prioritise sustainability in material selection across construction sectors worldwide.

The GCCA says that the LCR system is designed to be easily recognisable, with a simple visual graphic that indicates a product’s rating and provides consistency and comparability to other products. Countries will be able to adapt the system according to local standards.


Belarus: Belarusian Cement enterprises produced 5.34Mt of cement in 2024, up by 7% year-on-year, with shipments rising by 10% and total sales to domestic and foreign markets by 6.5%.

The holding company’s three plants, OJSC Krasnoselskstroymaterialy, Belarusian Cement Plant and OJSC Krichevcementnoshifer, accounted for 86.5% of domestic cement sales in the first quarter of 2025. The group also exports to Russia, supplying up to 10% of demand in the Central and Northwestern Federal Districts. It plans to increase market share further by modernising its production lines.


Nepal: Udayapur Cement Industry resumed operations on 24 April 2025, despite ongoing legal disputes and internal administrative obstructions, according to acting general manager Mahesh Sah. The plant ceased all activities in late November 2024. It began kiln firing at 10:40am local time and expected clinker production to begin after eight hours of machine operation.

The plant aims to produce approximately 400t/day of clinker. Coal and dinepalesel stocks are expected to last 12 days. Sah noted that coordination has been made with the Nepal Electricity Authority, which has assured uninterrupted power supply despite outstanding dues. Udayapur Cement, a fully state-owned enterprise, has a daily production capacity of 800t/day.


Pakistan: The All Pakistan Cement Manufacturers Association (APCMA) has appealed to the Competition Appellate Tribunal to annul a US$22.6m penalty imposed by the Competition Commission of Pakistan (CCP) over alleged collusion and price fixing.

APCMA’s counsel argued that the sector operates competitively with price variation, and that the CCP failed to properly analyse the industry geography. He said a 2003 quota-sharing agreement had expired before the CCP ruling and challenged office raids as unfounded.

The tribunal has adjourned the case to 22 May 2025, when defence lawyers will present arguments. The CCP previously fined the APCMA and its member companies in 2009 after alleging market collusion.


Mexico: Cemex has executed an investment agreement with Spain-based AI and analytics company Optimitive through its corporate venture capital arm Cemex Ventures. The company seeks to scale Optimitive’s solution across its operations as part of its Digital Innovation in Motion programme. It aims to significantly reduce energy consumption while increasing production efficiency by ‘double-digit percentage points’, according to a press release.

Alfredo Carrato, investment and open innovation advisor at Cemex Ventures, said “We are excited about this partnership with Optimitive, given the impressive results they have already achieved in Europe and the US in projects to date with Cemex.”


Indonesia: PT Indocement Tunggal Prakarsa (INTP) recorded a 6% year-on-year drop in cement sales to 3.9Mt in the year to 31 March 2025, according to local press. INTP corporate secretary Dani Handajani said that the beginning of the year was typically a low-demand period due to weather, Ramadan and Eid holidays, but noted that the company's sales decline was smaller than the national industry’s 8% fall. Good news also came from the development of the new capital city Nusantara, which is back on track after being delayed. The project is expected to boost cement demand in Kalimantan.

Handajani warned that Indonesia’s cement oversupply problem will likely continue in 2025, and requires government policies like a ban on imports and the construction of new plants in the country.


India: ICRA expects cement volumes to grow by 6-7% in the 2026 financial year, following a 6% rise in 2025, driven by housing and infrastructure demand. Capacity additions are forecast to increase to 43-45Mt/yr from 32-35Mt/yr in 2025. Eastern and northern regions will lead the expansion, with 22–24Mt/yr of new grinding capacity.

The assistant vice president of corporate ratings, Abhishek Lahoti, added “The southern region, despite an oversupply of capacity, is experiencing significant capacity additions by large cement companies as it is operating at optimal utilisation levels and intends to maintain its market share in the near term. Overall, the industry’s capacity utilisation is likely to remain stable at 70% in the 2026 financial year, similar to the previous financial year, on an expanded base.”


Colombia: Cementos Argos will invest US$45m to strengthen its operations in Colombia, according to a press release on 22 April 2025. The investment will reportedly fund infrastructure modernisation, implementation of new technologies and ‘operational excellence’, with the goal of increasing efficiency, competitiveness and sustainability nationwide.

The president of parent company Grupo Argos previously revealed that around US$3bn would be invested in fixed-income securities in the US following its sale of a 31% stake in Summit Materials in February 2025. In the longer term, the company would evaluate investments in heavy building materials, logistics companies and aggregates in the US.


India: The Rural Development Department has signed a memorandum of understanding with ACC Cements to co-process non-recyclable plastic waste at its Barmana plant. The initiative will cover the Bilaspur, Chamba, Kangra, Kullu and Mandi districts. The partnership follows similar agreements with Ambuja Cements and UltraTech Cements, and aims to reduce environmental pollution and landfill use through cement kiln co-processing.