Global Cement Newsletter

Issue: GCW711 / 28 May 2025

Headlines


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…


Indonesia: Semen Indonesia has appointed Indrieffouny Indra as President Director following its annual general meeting (AGM) held on 23 May 2025. He succeeds Donny Arsal in the role, who had been in post since 2021. Notable roles in Indrieffouny Indra’s employment history include President Director at Semen Padang from 2024 to 2025, Director of Operations at Semen Padang from 2022 to 2024 and Independent Commissioner at Wijaya Karya Beton from 2020 - 2022. He holds a degree in mechanical engineering from Sriwijaya University and a master of management qualification from Andalas University.

Other appointments confirmed at the AGM include Dicky Saelan as Director of Sales and Marketing, Dennis Pratistha as Director of Business Development and Strategy, Sigit Prastowo as Director of Finance and Risk Management, Hadi Setiadi as Director of Human Capital and Sigit Widyawan as President Commissioner.


India: Grasim Industries has appointed Hemant Kumar Kadel as its Chief Financial Officer. He will start the role on 15 August 2025. He succeeds Pavan Kumar Jain.

Kadel, aged 56 years, originally joined Aditya Birla Group in 1991 as a management trainee. He has worked across multiple businesses in the group, including Aditya Birla Nuvo, Birla White and Grasim CFD. Notable work in the cement sector includes expanding and restructuring the group’s white cement business. He currently heads the Corporate Taxation Function for Grasim Industries, where he oversees taxation, internal audit, risk management and mergers and acquisitions. Kadel is a commerce graduate from the University of Rajasthan with further qualifications from the London Business School, the Wharton School of Business at the University of Pennsylvania, ICFAI University and IIM Ahmedabad.


Türkiye: Cement exports rose by 1% year-on-year to US$1.4bn during the first four months of 2025, according to the Turkish Ministry of Trade. In April 2025, exports totalled US$389m, up by 16% compared to March 2024. Over the 12-month period to April 2025, cement exports reached US$4.32bn.

Cement exports to Kyrgyzstan fell by 78% year-on-year to US$123,050 in April 2025. In the first four months of 2025, cement exports to Kyrgyzstan dropped by 31% year-on-year to US$927,096.


Ghana: Cement manufacturers have failed to comply with a Cement Manufacturing Development Committee (CMDC) directive to declare ex-factory prices for 50kg cement bags by 23 May 2025, in line with the Ghana Standards Authority Legislative Instrument 2491, which mandates the reporting of prices every month.

CMDC chair Alex Dodoo confirmed on 27 May 2025 that no firm had complied and said the committee would hold an emergency meeting to consider sanctions. “The law is clear, and we will not hesitate to apply the necessary penalties,” he said.


US: Fortera has achieved ISO 9001:2015 certification for its ReCarb Plant in Redding, California, which produces 15,000t/yr of ReAct low-carbon cement. The international certification establishes protocols for quality management systems and ensures delivery of products and services that meet regulatory requirements. Fortera said that the certification process involved months of internal audits, documentation of operating procedures and responding to third party feedback.


India: India Cements has successfully completed a de-bottlenecking initiative at its Banswara cement plant in Rajasthan, increasing its production capacity by 0.3Mt/yr. The company’s cement manufacturing capacity now stands at 14.75Mt/yr.


Europe: Heidelberg Materials and environment consultancy Arup have signed a memorandum of understanding (MoU) to collaborate on decarbonisation of the built environment through carbon capture and storage-enabled cement and concrete.

The partners will conduct joint research and technical analysis on the deployment of CCS technologies across cement and concrete production. Heidelberg Materials and Arup previously began collaborating in November 2024 to assess the benefits and feasibility of carbon-captured cement and concrete.


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.


Armenia: The Committee on Economic Affairs of the National Assembly has approved a fourfold increase on cement import duty, in a bid to protect domestic producers from cheaper Iranian imports, according to Arminfo News. Cement production in Iran is reportedly cheaper due to state subsidies and low energy prices, and is exported in large volumes to neighbouring countries, including Armenia. The new duty intends to create equal competition in the sector. According to the State Revenue Committee, cement imports to Armenia rose by 72% year-on-year to 436,000t in 2024.


Myanmar: An Indian Navy vessel, the UMS Myitkyina, arrived at Thilawa (MITT) port on 23 May 2025, carrying 225t of cement donated by the Indian government to support reconstruction efforts after the March 2025 earthquake, according to the Global Light of Myanmar newspaper. A handover ceremony for the 4500 50kg bags of cement took place later that afternoon. The Yangon Region government supervised the transfer of the cement onto cargo trucks for distribution to affected areas.


UK: The Mineral Products Association (MPA), which represents UK- based producers of cement and lime, has welcomed the UK government’s proposal to link the UK and EU Emissions Trading Schemes (ETS). The link was announced as part of a deal to streamline relations between the EU and UK. The MPA has been calling for a link between the UK and EU ETS since they were separated following the UK’s departure from the EU in 2020 and welcomed the announcement as part of the policy framework needed to support the sector. It said that linking the two schemes will give UK cement and lime producers access to a larger, more liquid carbon market, bringing the kind of stability that the sector needs to promote investment confidence.

However, the MPA has also repeated its calls for the government to tackle the high electricity costs that exacerbate the issues facing the industry, undermining its international competitiveness and making it vulnerable to imports. It has also reiterated the importance of delivering a watertight UK Carbon Border Adjustment Mechanism (CBAM), levelling the carbon costs with imports from outside the EU and preventing decarbonisation by deindustrialisation.


EU: The European Parliament has approved proposed changes to the EU carbon border adjustment mechanism (CBAM) as part of efforts to reduce the administrative burden for small and medium sized enterprises (SME) and occasional importers. Members of the parliament adopted the text by 564 votes in favour, 20 against and with 12 abstentions.

While the changes do not affect large scale importers, including those of cement, they remove the need to pay for CBAM allowances for less than 50t of imports. This will exempt 90% of importers - mainly SMEs and individuals - that import only small quantities of CBAM-effected goods. However, the CBAM’s environmental objectives will reportedly remain achievable, as 99% of total CO2 emissions from imports of cement, iron, steel, aluminium and fertilisers would still be covered.


US: Microsoft has agreed to buy 0.62Mt of cement from Sublime Systems over the next 6 - 9 years. The low-carbon cement producer will supply its product from its first commercial factory in Holyoke, Massachusetts and its subsequent full-scale production factory. The purchase marks the first binding commitment for Sublime's full-scale plant, which it plans to bring online in 2030, two years after its plans to open its first commercial facility in Holyoke. The Holyoke plant is due to break ground in mid 2025.

The Somerville-based startup structured the deal using a ‘book and claim’ system that allows Microsoft to purchase cement and its environmental attributes separately when needed. The company says this approach is the first-of-its-kind in the cement industry, adapting a model previously used in renewable energy and sustainable aviation fuel markets. Under the agreement, Microsoft commits to using the environmental value of Sublime's cement in all cases, even when the physical material can't be deployed in nearby Microsoft construction projects.

“Sublime’s mission is to have a swift and massive impact measured in the amount of cement we produce and sell. So we are super-focused on increasing production,” said Leah Ellis, CEO of Sublime Systems. “We can't stop with Microsoft. We want to make sure we're supplying our material to many different types of infrastructure, so we'll also be pursuing various contracts and purchase agreements with folks who represent different types of the built environment.”


India: Adani Group has reported record earnings for the 2025 financial year (FY2025), which ended on 31 March 2025. It finished the 12 month period with consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) of US$10.5bn across all of its operations. This represented a 8% rise year-on-year, and was mainly driven by continued expansion in the conglomerate’s infrastructure sectors.

Cement sales from its subsidiaries Ambuja Cement and ACC rose to more than 100Mt following expansions at several plants. It has plans to invest US$100bn across all of the sectors it is involved in, including ports, mining, cement, steel, power and more, by 2031.

“India’s consumption engine remains strong,” said Karan Adani, CEO of Adani Ports & SEZ and chair of ACC. “As manufacturing grows, trade volumes will surge.”


Philippines: The Department of Trade and Industry (DTI) has announced that Taiheiyo Cement’s US$67m Luzon Distribution Terminal, which will supply up to 0.7Mt/yr of cement to Luzon, will begin operations in early 2026. The plant will use a high proportion of supplementary cementitious materials (SCM), including fly ash, slags and natural pozzolans.

Taiheiyo Cement has said that the terminal represents the Japan-based company’s long-term commitment to the Philippine cement market and that it is aware of recent DTI rules that aim to safeguard domestic cement producers.


Pakistan: The cement sector experienced a ‘substantial’ increase in earnings during the third quarter of fiscal year 2025 (from 1 January 2025 to 30 April 2025), according to a recent analysis of eight key producers. Collective earnings grew by a factor of 2.3 compared to the same period of the 2024 fiscal year (FY2024), primarily driven by an expansion in profit margins and dividend income from subsidiaries.

This came despite a comparatively modest 2% year-on-year increase in local cement dispatches, with the increased margin largely attributed to lower coal prices, alongside enhanced cost efficiencies and higher prices.

Looking forward, expectations are high for further margin gain. Rising cement prices, particularly in the north, are anticipated to support this trend. Additionally, continued low international coal prices are likely to benefit companies operating in the south.


US: Eagle Materials recorded net earnings of US$463m of in the 2025 fiscal year (FY2025), which ended on 31 March 2025. This represented a 3% year-on-year fall. The company achieved a record revenue of US$2.3bn, marginally higher than the amount seen in FY2024.

Eagle Materials’ revenues from its Heavy Materials segment, which includes cement, concrete and aggregates, fell by 2% year-on-year to US$1.4bn. Net earnings from this sector were US$320m, 6% lower year-on-year. Cement volumes were also down by 5% to 6.9Mt.

Commenting on the annual results, Michael Haack, President and CEO, said “We are pleased to report another year of strong financial, strategic and operational performance at Eagle. In FY2025, we generated record revenues of US$2.3bn and a gross profit margin of 30%, continued to advance our long-term growth and value-creation strategies and achieved important milestones in employee health and safety.”

Haack added that results in the Heavy Material sector were ‘dented’ by adverse weather in January and February 2025. Higher production costs also dragged on results as the company brought forward an annual maintenance outage at one facility and experienced weather-related interruptions at other facilities.


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.’


India: JK Lakshmi Cement has partnered with SwitchLabs Automobiles to introduce electric vehicles (EVs) into its logistics network. The company says that this represents a strategic step towards cleaner transportation and more sustainable supply chain practices. According to a press release, the EVs will operate on the route between the JK Lakshmi Puram cement plant in Sirohi, Rajasthan, and the Kalol Grinding Unit in Kalol in the state of Gujarat, a distance of around 225km each way.

The initiative builds on the success of a previous pilot project, which demonstrated a substantial reduction in CO2 emissions while maintaining operational efficiency. By integrating clean mobility into its logistics operations, JK Lakshmi Cement aims to reduce its environmental footprint and contribute to India’s broader transition to sustainable infrastructure.


France: Two workers have been hospitalised following an explosion at Heidelberg Materials’ Airvault cement plant. They were dismantling an old gas tank at the plant on 20 May 2025 when it exploded at around 17:30 local time, according to the La Nouvelle République newspaper. One worker was taken to a specialist burns unit and the other suffered an injured ankle.

Heidelberg Materials has launched an investigation to determine the exact cause of the explosion.