Global Cement Newsletter

Issue: GCW713 / 11 June 2025

Headlines


On 9 June 2025 the Nepalese government announced the shock closure of the state-owned Udayapur Cement Industry, which operates the 0.4Mt/yr Jaljale cement plant in the high-altitude Terhathum District.1 No express reason for the closure has been forthcoming. A little digging is therefore required…

Nationally, Nepal is home to 13 integrated and 16 grinding plants,2 which sounds like a lot. However, with a total capacity of 12.3Mt/yr between them, each plant – many of which are quite aged and in need of modernisation - has an average capacity of 0.4Mt/yr. Amid chronic low demand, the capacity utilisation rate in some regions is as low as 40-50%.3

The planned closure of the Udayapur Cement Industry is all the more surprising considering that it only resumed operations on 24 April 2025 following the suspension of operations at the end of November 2024. The plant resumed production at 400t/day, half of its capacity, despite a US$42m upgrade as recently as February 2022 that had expanded it from 0.3Mt/yr to 0.4Mt/yr!

Upon re-opening in April 2025, the plant said that it had sufficient coal to maintain operations for at least 12 days and that it had a secure supply of electricity from the state-owned Nepal Electricity Authority (although it did also have unpaid electricity bills…). It has since been able to secure more coal, which must be imported through tortuously narrow passes from India. As well as securing coal, the plant’s altitude, some 1800m above sea level, complicates electrical infrastructure supplies. Back in 2019, the pre-expansion Jaljale cement plant was reduced to periods of just 13% capacity utilisation, with power cuts occurring at a rate of more than 60 in a single year, with six once hitting in a single day.

Back to the current year, Nepali cement producers faced an additional challenge on 15 February 2025, when a court issued a ‘show cause’ notice over seasonal price rises that had taken effect in December 2024. Bizpati News reported producers’ explanations that they were not in a cartel, including the admission that they were already operating at a loss.4 The situation got worse on 4 June 2025, when the government raised sales taxes from US$0.08/bag to 5% of the sales’ value.5 In order to protect their margins, producers raised prices by US$0.15-0.18/bag. According to Ravi Singh, president of the Federation of Contractors’ Associations of Nepal, this has meant that contractors are now struggling to purchase cement. He accused manufacturers of cutting production by up to 40% to create an artificial shortage, calling it ‘a tactic to manufacture scarcity and exploit the situation.’ Producers defended the price rise, claiming it corrects previous underpricing caused by ‘unhealthy competition.’

Regardless of who can shout the loudest, it is clear that there is just too much cement capacity in Nepal. While exports to India, itself not completely lacking in cement, have helped, more plants are likely to close. Back in Jaljale, Udaypur Cement Industry’s workers, their families, other local stakeholders and political parties have united in signing a memorandum of understanding in opposition to the closure. They too are asking: Why call time on a plant that was recently upgraded… and how can we keep the gates open?

 

References

1. https://www.globalcement.com/news/item/18859-nepali-government-announces-shock-closure-of-udayapur-cement-industry
2. Global Cement Directory 2025, Pro Global Media Ltd., Epsom, UK, 2025.
3. https://www.globalcement.com/news/item/17800-nepal-exports-us-3-81m-worth-of-cement-to-india-via-kakarvitta-crossing-in-2024-financial-year
4. https://bizpati.com/industry/88192
5. New Business Age News, ‘Cement price rises to Rs. 22 per bag,’ 4 June 2025, https://abhiyandaily.com/article/simenttko-muuly-boraamai-22-rupaiyaansmm-bddhyo


World: Dominik von Achten, CEO of Heidelberg Materials, has been elected as the new President of the Global Cement and Concrete Association (GCCA). He was officially confirmed as President at the GCCA Global CEO Gathering and Leaders Conference in Mexico City, Mexico, in June 2025. He has been GCCA Vice President since 2023 and succeeds the outgoing President, Fernando Gonzalez, whose term of office now ends after two years, and who recently retired as CEO of Cemex.

Dr von Achten said “It is a great honour to be elected President of the GCCA. Cement and concrete are essential to modern life. Our building materials are here to stay, as they are versatile, durable, 100% recyclable and locally produced. As their custodians, we are working with all available levers to deliver on our ambitious 2050 net zero roadmap. Our members and industry are taking continuous action to reduce CO2 emissions. I am convinced that concrete can become the world’s most sustainable building material – through continued innovation, active collaboration and by driving global excellence.”


UK: Gauthier Autrand has been appointed as the new Plant Manager of Holcim UK’s Cauldon cement plant in Staffordshire, England. He has more than 20 years of construction experience in the UK and around the world, having managed significant facilities in France, Belgium and Kazakhstan. Throughout his career, he has spent much time developing Science, Technology, Engineering and Maths (STEM)-related partnerships with politicians in various countries to bring the education system in line with the specific needs of the construction industry, and to help address the sector’s growing skills gap.

Holcim UK’s Cauldon cement plant is central to Holcim UK’s involvement in the Peak Cluster initiative, one of the UK’s ‘most ambitious’ CCUS projects. Set to launch in 2031, Peak Cluster aims to capture CO2 from cement and lime production in Staffordshire and neighbouring Cheshire and Derbyshire, safely storing it under the Irish Sea.


Canada: Concrete carbon capture technology producer CarbonCure Technologies has appointed Kristal Kaye as Interim CEO. Kaye previously served as the company’s Chief Financial Officer and, in that capacity, has already been deeply engaged with CarbonCure’s team, strategy and day-to-day operations. Her appointment comes as CarbonCure’s founder, Robert Niven, steps away from the CEO role. Niven will remain a strong supporter of CarbonCure, continuing to serve on the company’s Board of Directors.

Under Niven’s leadership, CarbonCure developed and commercialised the most widely-deployed carbon utilisation solution for lower-carbon concrete manufacturing. Over the past decade, CarbonCure has licensed hundreds of its CO2 injection systems to concrete producers across more than 20 countries, permanently mineralising and reducing nearly 0.6Mt of CO2.

“Everyone at CarbonCure feels deep gratitude to Rob for his pioneering carbon utilisation innovation for lower carbon concrete and his tireless dedication to CarbonCure over the past 13 years, with many years of research and development before that,” said Kaye. “Stepping into this interim role, I am eager to carry Rob’s legacy forward, and our entire team remains committed to that mission, our core values and the success of our concrete producer partners around the world.”


Pakistan: Five companies have signalled interest in bidding for Attock Cement. These include Alpha Cement Company, Bestway Cement and Cherat Cement Company, along with military investment fund Fauji Foundation and utilities provider Kot Addu Power Company. Pakistan Today News has reported that Fauji Foundation and Kot Addu Power Company’s plans consist of a joint acquisition of 84% of Attock Cement, followed by a mandatory public offer for the free float. Alpha Cement Company, meanwhile, may seek to buy as much as 92%, through a follow-on offer.

Attock Cement commands 3Mt/yr of capacity in South Pakistan, reportedly an increasingly attractive region, amid the on-going ‘revival’ of exports from Karachi port.

Alpha Cement Company was incorporated in Karachi in November 2024.


US: Ozinga has broken ground on a 1Mt/yr alternative cement grinding plant in East Chicago, Indiana. The plant is equipped with a Gebr. Pfeiffer MVR5300-C6 vertical roller mill. It will produce ASTM C989-compliant slag cement and other blended cements. When operational in 2026, it will be the largest of its kind in North America, and avoid 700,000t/yr of CO₂ emissions from conventional cement production. Its location offers strategic rail, road and shipping access to large markets in the US and Canada.

East Chicago Mayor Anthony Copeland welcomed an anticipated 150 new jobs resulting from construction and subsequent operations at the plant.


UK: Clay brick and concrete products producer Ibstock is seeking an industrial partner for a ‘major’ calcined clay cement plant in the UK.

The group has identified a large reserve of high-kaolin clay at one of its operating brick clay quarries in central England. The site is a fully-consented quarry, with sufficient calcinable material to support calcined clay production for more than 25 years. ‘Extensive’ drilling and industrial trials have been completed to confirm the reserves and the reactivity of the calcined clay for use in low-carbon cement production.

Ibstock says that is looking at an industrial partner to collaborate on the design, construction and commercialisation of the project. It is open to exploring optimal investment and partnership models to fully realise the potential of the site.

Email Ibstock to discuss the project: enquiries@ibstock.co.uk


India: ACC Chair Karan Adani says that he expects the cement industry to benefit from the an anticipated US$2.2tn in new public infrastructure spending between 2025 and 2030.

Press Trust of India News has reported that Adani said "ACC crossed the 100Mt/yr cement capacity milestone in April 2025, propelling us closer to our ambitious 140Mt/yr target by the 2028 financial year." The company’s capacity corresponds to 15% of an all-India installed capacity of 686Mt/yr.


Peru: Grupo Gloria plans to invest US$100m in an upcoming lime plant in Lima. OneStone Consulting has reported that the plant will supply lime for Lima’s construction, agriculture and mining sectors.

Grupo Gloria subsidiary Cal & Cemento Sur already operates a five-kiln lime plant in Puno Region with five kilns, comprising three Maerz Parallel Flow Regeneration (PFR) vertical kilns and two horizontal kilns.


India: During the fourth quarter of the 2025 financial year (which ended on 31 March 2025), premium products constituted 16% of Shree Cement’s sales mix, up from 12% one year previously. During the period, the company further diversified its offering with the launch of two new premium cements, Bangur Marble Portland slag cement and Extra White Portland slag cement, in Bihar, Jharkhand and West Bengal. Both products are designed for maximum brightness and smoothness within their category of CEM-II Portland slag cements. The company says that its growing portfolio helped it to increase its full-year financial realisation per tonne by 5% year-on-year.

Business Today News has reported that managing director Neeraj Akhoury said "In the 2025 financial year, 74% of our cement output was blended, avoiding over 7.2Mt of CO₂ emissions."

Shree Cement crossed 60% consumption of energy from renewable sources in May 2025, Construction World News has reported. It has 582MW of installed renewable power capacity and is currently in the process of building a 1MW battery storage system at one of its cement plants in India.


Japan: Taiheiyo Cement has announced that it will expand the export of blended cement through the establishment of a new facility at its Saiki Ash Centre in Saiki City, Oita Prefecture. Taiheiyo Cement says that the facility, which will meet growing demand for blended cement in South East Asia, is part of its sustainability strategy. The blended cement will use fly ash from domestic coal-fired power plants.

The new facility will expand Taiheiyo Cement’s blended cement export capacity from 0.8Mt/yr to 1.3Mt/yr.


Indonesia: Cement production fell by 7.4% in Indonesia during the first quarter of 2025, falling from 14.5Mt in 2024 to 13.4Mt in 2025, according to data from the Indonesian Cement Association (ASI). March 2025 was particularly low compared to the year prior, with sales for the month falling by 21.6% to 3.8Mt. The nation’s capacity utilisation rate was estimated at just 57%.

Regionally, the steepest decline was seen in Kalimantan, where sales for the first quarter of 2025 were 21.8% lower than in the same period of 2024. Sales in Bali and Nusa Tenggara fell by 15.2%, while Sulawesi saw a decline of 13.9%. The decrease in Kalimantan was due in part to the slower development of projects in the new capital city Nusantara, as the government has slowed down spending on the project.

More widely, ASI chairman Lilik Unggul Raharjo attributed the national contraction in cement sales to weaker household spending, as well as slower infrastructure construction. He projected continued pressure on the cement industry throughout the rest of 2025, driven by global economic uncertainty and excess production capacity.

Raharjo also pointed to global policies to reduce carbon emissions as another burden on the industry, citing Australia's Carbon Border Adjustment Mechanism (CBAM), which is set to take effect in 2027. The policy will require a carbon tax to be paid on products with emissions that exceed a set limit, which could disrupt clinker exports from Indonesia to Australia. These are currently in the region of 1Mt/yr.


Spain: Çimsa Cementos España, a subsidiary of the Turkish group Sabancı, plans to invest €12.55m in its Buñol white cement plant close to Valencia during 2025. This will be followed by €7.1m in 2026 and €5.4m in 2027. The investments will be primarily for the development of alternative fuels, energy efficiency and new business lines. These significant investments follow €10.8m spent during 2024, when the manufacturer launched a photovoltaic installation near its plant to supply 18% of its energy needs.


South Africa: PPC’s revenues fell by 1.9% year-on-year in the 12 months to 31 March 2025, decreasing to US$560m. However, earnings before interest, tax, depreciation and amortisation (EBITDA) surged by 28% to US$88m.

CEO Matias Cardarelli said that PPC has had to focus on internal corrections to grow its earnings and unlock underutilised value for the company. He explained that the company had performed ‘ahead’ of what it had expected for the period under review. “There was a narrative that the only problems that PPC was having were the problems connected to the economy, and the cement sector in South Africa had not grown for more than 10 years. Whereas that was not completely the case. That had a negative impact on the company,” said Cardarelli.

PPC is building a new 1.5Mt/yr plant in the North West Province with China’s Sinoma, as well as a new solar power plant in Zimbabwe as it invests further into the company at a time when the costs of electricity and other inputs are spiking. The company said that imports of cement into its regional markets were not a major worry as it was increasing its competitiveness against rival local and imported products. “In South Africa, we remain cautiously optimistic for the announcement by the new government of big infrastructure plans,” Cardarelli added.


US: More than 50 employees of the CalPortland cement plant near Mojave went on strike on 8 June 2025. A spokesperson for the workers said that it was the first strike at the location since 1981. A striking employee told local press that pay and retirement benefits are among workers’ concerns. The union's contract with the company expired in March 2025.


Vietnam: Siam Cement Group Vietnam (SCG Vietnam) recorded sales of US$301m in the first quarter of 2025, 43% of group regional sales outside of Thailand.

SCG Vietnam hosted Vietnamese Prime Minister Pham Minh Chinh at its US$5.5bn Long Son petrochemicals complex earlier in 2025, when it announced that currently planned investments will target the petrochemicals division, as opposed to cement. It acquired the Sông Gianh cement plant in Quảng Bình for US$156m in 2017.


Nepal: The government plans to shut down Udayapur Cement Industry, which operates the Jaljale cement plant, in mid-July 2025. The República newspaper has reported that the government has received a memorandum of understanding (MoU) signed between workers, local people and political parties to contest the closure. Critics reportedly accuse the government of trying to bankrupt the company in order to sell it.


Poland: The Office of Competition and Consumer Protection (UOKiK) has launched an investigation into Cement Ożarów, Cemex Polska, Dyckerhoff Polska, Góradżdże Cement, Górażdże Beton and Holcim Polska over potential cement cartelisation. The office has not stated the exact triggers of such an investigation at this time.

ISB News has reported that UOKiK previously discovered an 11-year-long conspiracy to divide the market and fix prices between seven companies in 2009.

UOKiK President Tomasz Chróstny said "The return of a cartel would be particularly outrageous, considering that cement is one of the basic construction materials, necessary for the development of housing, road infrastructure and the entire economy."

If found to have been party to any agreement restricting competition, companies can expect penalties as high as 10% of turnover.


Australia: Minister for Climate Change and Minister Chris Bowen says that the government is ‘considering’ the enactment of a Carbon Border Adjustment Mechanism (CBAM) to prevent carbon leakage from high emissions-intensity products, including cement.

The Australian Parliament committed to 43% national CO2 emissions reduction between 2005 and 2030 in 2022, and capped emitters’ individual carbon footprints in 2023. Final advice from a government Carbon Leakage Review was due after May 2025, and was possibly complicated by on-going US climate and trade reforms under President Trump. The Australian Cement Industry Federation bemoaned a lack of action on carbon leakage in March 2025. It warned of jeopardy to both decarbonisation and 1400 jobs in the Australian cement sector.

Australia’s construction industry imported 40% of its cement used in 2024.


India: Management guidance for Indian cement demand growth in the 2026 financial year for ‘most companies’ in the sector was 6 – 7% year-on-year.

In the 2025 financial year, UltraTech Cement and JK Cement raised their cement sales volumes by 17% and 15% year-on-year respectively, due to to demand recovery and the effects of new acquisitions. Ambuja Cement’s volumes grew by 13%, while Dalmia Cement Bharat’s fell by 2% and Ramco Cements’ by 5%.

The Business Standard newspaper has reported that the all-India cement capacity ended the 2025 financial year at 655Mt/yr, up by 5% year-on-year. 60Mt/yr-worth of new cement production capacity is due to come online later in the 2026 financial year, which would increase that figure by a further 9%.


Greece: Titan Greece has obtained Enterprise Greece’s strategic investment status for its upcoming 1.9Mt/yr-capacity IFESTOS carbon capture project at the Kamari cement plant in Boeotia. The status also extends to an upcoming Business Park adjacent to the plant. The IFESTOS project is currently at the stage of basic design and environmental studies, with a final investment decision due in 2026. An anticipated 750 direct and indirect jobs will result from the construction and operation of the carbon capture unit.

Titan Cement Group’s Europe regional executive director Yanni Paniaras said "IFESTOS’ inclusion underlines the importance of the project for Greece. Preparation continues apace.”


US: Researchers at the Massachusetts Institute of Technology (MIT) have developed an AI tool to compare studies of alternative raw materials for cement production. A collaborative team from the MIT Concrete Sustainability Hub and MIT’s recycling research programme, Olivetti Group, published its findings in the Nature journal. The team mined 5.7m academic publications to identify 14,434 alternative raw materials. These belonged to 19 ‘types,’ including bottom ashes, fly ashes, calcined clays and slags, as well as less homogenous types such as biomass ashes, glasses and mine tailings. The study more than doubles the number of fly ashes and slags recorded on a database of this kind. The tool then provides a unified assessment of cementitious reactivity and pozzolanicity, also accounting for variables in particle size and amorphous content.


India: Grasim Industries accepted bids worth US$117m in an issue of bonds on 5 June, Reuters has reported. The bonds reportedly have a maturity of five years.


Germany: Screencore has announced the appointment of WBI Baumaschinen as their distributor for Germany. AggNet News has reported that WBI Baumaschinen will offer Screencore’s entire product portfolio, with a focus on stockpilers, trommels and pugmills. It will also provide a comprehensive aftermarket package, including parts, servicing and technical support.

Screencore director Ciarán Ryan said "The Screencore range fits seamlessly into WBI's existing product lines and allows them to offer a true total solution to their customers."


India: Dalmia Cement (Bharat) plans to raise US$122m through the issue of bonds maturing in seven and 10 years. Reuters has reported that the sale includes a greenshoe option of US$34.9m. The producer will receive coupon and commitment bids for both options from 11 June 2025.


Colombia: National grey cement production fell by 7% year-on-year to 1.06Mt in April 2025. Shipments to the domestic market declined by 7% to 0.99Mt. Between January and April 2025, production dropped by 3% year-on-year to 4.24Mt and domestic shipments fell by 1% year-on-year to 3.91Mt.


Morocco: Cement sales reached 6Mt from January to May 2025, up by 9% year-on-year from 5.5Mt, according to the Ministry of National Territorial Planning, Urban Planning, Housing and Urban Policy.

The growth concerns deliveries by Professional Association of Cement Manufacturers (APC) members Asment Temara, Ciments de l'Atlas, Ciments du Maroc, LafargeHolcim Maroc and Novacim. In May 2025, APC members delivered 1.5Mt of cement, up by 7% from 1.4Mt in May 2024.


Guinea: Cement has become scarce across Guinea, halting many private construction sites and driving prices higher. According to a report by the Guinee7 newspaper, the country has six producers that operate seven cement plants, with a combined production capacity of around 3.6Mt/yr. This is up from 2.2Mt/yr four years ago – an increase of nearly 60%.

However, two plants have shut down due to a lack of clinker. Industry sources propose reviving domestic clinker production but caution that stabilisation could take several months.


Trinidad & Tobago: Trinidad Cement (TCL) has amended its loan agreements with Citibank and Scotiabank for the third time. The TCL board entered a third amended and restated agreement to its 24 July 2018 loan deal, under which Citibank and Scotiabank will each lend US$20m.

The loan repays TCL’s obligations under earlier agreements with Republic Bank and RBC Merchant Bank dated 22 July 2021. TCL’s parent company Cemex guarantees the loan. It owns 69.83% of TCL through holding company Sierra Trading.