Global Cement Newsletter

Issue: GCW729 / 01 October 2025

Headlines


Heidelberg Materials announced this week that it had received the funding clearance to build a carbon capture and storage (CCS) unit at its Padeswood cement plant in Cymru (also known as Wales). Construction on the project will start later in 2025 with net zero cement production expected in 2029. The upgrade will be the group’s first full-scale carbon capture facility. It will capture around 0.8Mt/yr of CO2 at the site or around 95% of the CO₂ emissions from the process. As the captured emissions will also include biogenic CO₂ from biomass fuels - including domestic food, wood and paper wastes - cement produced at the plant could potentially be net negative.

Just like Heidelberg Material’s first large-scale CCS project at the Brevik cement plant in Norway, the work at Padeswood is part of a larger government-backed decarbonisation cluster. In this case it’s the HyNet North West project. Captured CO₂ from Padeswood will be transported via an underground pipeline for storage under the seabed in Liverpool Bay. The wider cluster will also produce, transport and store hydrogen. A waste-to-energy company Encyclis also announced this week that it had also agreed terms with the government for its Protos CCS project.

It is worth noting the differences between Heidelberg Material’s first two large-scale CCS projects. Padeswood, like Brevik, will use an amine-based carbon capture system but the technology is likely to be provided by a different supplier. Mitsubishi Heavy Industries (MHI) and Worley were awarded the contract for the Front End Engineering Design (FEED) phase of the project in 2024 with the intention of using MHI’s Advanced KM CDR Process. The funding model is also different for Padeswood. In Norway the original estimate was that over three-quarters of the carbon capture unit would be paid for using state aid and over two-thirds of the funding for the transport and storage of CO2 would come from the government. Large sums of government grant funding could be seen entering Heidelberg Materials’ balance sheet in 2024 for example. By contrast, Heidelberg Materials says it has agreed a ‘contract for difference’ (CFD) with the UK government. Under the terms of this contract the cement company will provide the upfront investment to build the project and will also be responsible for any additional costs over the agreed contract price. The CFD will likely track the carbon price in the UK Emissions Trading Scheme (ETS).

The wider picture is that the UK government allocated just under €25bn in late 2024 towards two decarbonisation clusters with the funding to be made available over 25 years. However, the completion date for the Padeswood CCS of 2029 is, coincidentally, the latest year by which the next UK parliamentary election could be held. The incumbent Labour party is currently behind in the polls to the populist Reform UK party. The deputy leader of the latter said that his party would cut all "net stupid zero" policies if they entered government. It is likely that the arrangement between Heidelberg Materials and the UK government is legally binding for decades to come with provision for all sorts of eventualities. Yet readers may recall the decision by the second Trump administration in the US to cancel funding for various carbon capture projects including at least one cement project. There is also opposition from various groups in the UK to carbon capture generally and from some groups to HyNet specifically. HyNot, for example, applied for a judicial review in August 2025 challenging the government’s decision to allow Italy-based Eni to store carbon dioxide in Liverpool Bay.

Another issue is that UK cement production dropped to 7.3Mt in 2024, the lowest level since 1950. The impending carbon border adjustment mechanism (CBAM), due in 2027, should help local producers fight off imports but if the market stays down then the production base may need to be rationalised. A cement plant with a new CCS unit linked to the government’s flagship decarbonisation cluster doesn’t seem an obvious choice for closure anytime soon though.

From here it’s all about building new carbon capture projects at different cement plants in different locations with different technologies and so on to determine what works and what doesn’t. A major part of this phase is deciding what kind of government involvement fits and trying it out over the coming years. To end, a CCS project in the north of the UK is poignant given that the Industrial Revolution started here in the late 18th Century. ‘Pob lwc’ (good luck) to all concerned!


Saudi Arabia: Southern Province Cement has appointed Saud bin Safar Al-Bargan as its CEO.

Al-Bargan holds over 25 years of professional experience with 15 years in the cement and building materials sector. He joined Southern Province Cement in 2011. Notable roles he has held at the company include Director of Marketing and Sales, Director of Planning and Business Development, Director of Engineering Services, Director of Supply Chain Management, Executive Vice President of Operations and Operations, and secretary of the board of directors. He is a graduate in applied mechanical engineering from King Fahd University of Petroleum and Minerals.


UK: Holcim UK has appointed Jan-Willem Verkaik as the Project Director for its carbon capture project at its cement plant at Cauldon in Staffordshire.

Verkaik holds over 30 years’ project management experience, having overseen the planning and execution of gas developments in countries including Brunei, Iraq, Norway, Russia and the UAE. Much of his career has been spent working for Shell and related companies. He worked for Brunei Shell Petroleum on offshore projects from 2007 to 2013. He later held positions with Shell and joint-venture Basrah Gas Company. He is a graduate in mechanical engineering from the University of Twente in the Netherlands.


Canada: Progressive Planet has appointed Doug Brown as president and Chief Technology Officer (CTO) at its subsidiary Progressive Planet Alberta. He has been on the advisory board of Progressive Planet since 2020. With this full-time role, he will be responsible for opening and operating the company’s new C-Quester Cement Lab in Calgary. He will also oversee all research and development activities for the Progressive Planet group of companies.

Brown holds a PhD in materials chemistry from the University of Calgary. He started his career as a research scientist at the University of Calgary working on direct air capture (DAC) where he was part of Carbon Engineering Group. Later, he was part of the founding team of ZS2 Technologies, where he led the development of various magnesium-based cement products as its CTO.


Pakistan: Flying Cement says that its CEO Agha Humayun Khan died on 22 September 2025. Khan had been in post since 2006. It described him as a “distinguished leader” and said that “his contribution to Flying Cement Company was significant.” He was reappointed as CEO for three months in May 2025. The cement company has started proceedings to appoint his successor.


Malawi: Huaxin Cement successfully ignited its new 2000t/day clinker production line on 28 September 2025, marking the official start of trial production, according to a post on Linkedin by the producer. Once fully commissioned, the plant will add 0.8Mt/yr to the company’s cement capacity. The project reportedly incorporates energy-efficient equipment, low-carbon calcination technology and a full-process DCS automated control system, creating a closed loop from raw material crushing to packaging. The facility will generate 500 direct jobs, with 90% allocated to local workers.

Construction began on 28 October 2024 and was completed in just 11 months. The company said close coordination between the plant and EPC teams helped overcome multiple challenges to deliver the project.


Rwanda: Cement producer Cimerwa will invest about US$190m in a new clinker plant, aiming to reduce its dependence on imports and save an estimated US$2.88bn in foreign exchange over the next 25 years. CEO Mangesh Kumar Verma said the plant, which will be built in Musanze, is expected to begin operations within two years with a capacity of 0.72Mt/yr of clinker. The plant will meet the company’s local demand of 0.54Mt/yr, with the surplus exported. Verma said that if limestone reserves prove larger than expected, there is provision to add another line. The investment follows rising costs from importing clinker, which currently amount to around 0.36Mt/yr at a cost of US$3.7m–4.0m. Verma added that clinker makes up about 70% of cement production costs, rising to 95% when imported.

Cimerwa’s unaudited financial results for the nine months ending 30 June 2025 showed that revenues were up by 50% year-on-year to US$75m, driven largely by its July 2024 acquisition of Prime Cement. However, profit before tax dropped by 23% to US$7.7m, reportedly due to input cost increases and continued depreciation of the Rwandan Franc. The company said that the Musanze clinker plant will stabilise production costs and position Rwanda as a net exporter, supporting large-scale infrastructure projects such as the New International Airport in Bugesera.


India: Dalmia Bharat, through its subsidiaries, has announced a strategic investment of approximately US$397m in Maharashtra and Karnataka. The company will set up a 3.6Mt/yr clinker unit and a 3Mt/yr grinding unit at its existing Belgaum plant in Karnataka, alongside a new greenfield split grinding unit of 3Mt/yr in Pune, Maharashtra. The projects, funded through a mix of debt and internal accruals, are expected to be commissioned by the fourth quarter of the 2027 financial year. Following completion, and factoring in ongoing 2.9Mt/yr expansions in Assam and Bihar, Dalmia Bharat’s installed capacity will rise to 55.5Mt/yr.

The Belgaum expansion will strengthen supply in southern Maharashtra and deepen the company’s reach in Karnataka, while the Pune plant will focus on the untapped western Maharashtra markets.

Puneet Dalmia, managing director and CEO of Dalmia Bharat, said “This investment is a significant step in our Phase II expansion strategy, bringing us closer to strengthening our position as a pan-India player and to reach our intermittent goal of 75Mt/yr capacity by the 2028 financial year. The increase in our production capacity is primarily to meet the growing infrastructure demand in Western India.”


Thailand: The Thai Cement Manufacturers Association (TCMA) has signed a memorandum of understanding (MOU) with the government of Saskatchewan in Canada, represented by the Ministry of Trade and Export Development, to strengthen cooperation in sustainable industrial development and decarbonisation. The agreement focuses on energy transition and advanced carbon capture, utilisation and storage (CCUS) technologies, with potential pilot projects to be explored under the Saraburi Sandbox project. A joint working group will be established to drive implementation and progress will be reviewed annually.

Nopadol Ramyarupa, vice chair and acting chair of TCMA, said “This collaboration aims to accelerate the Thai cement industry’s progress toward achieving the Net Zero 2050 goal by facilitating collaboration on technological advancements on green energy transition and CCUS technologies. Furthermore, if a pilot project can be established in Saraburi Sandbox, it would be beneficial in supporting Thailand’s green economy. It could serve as a role model on industry decarbonisation and inspire the regional and beyond.”

Warren Kaeding, Minister of Trade and Export Development, Saskatchewan, said “This partnership demonstrates how Saskatchewan’s expertise in clean energy and innovation is creating global opportunities. The collaboration with TCMA provides not only an opportunity to share knowledge and experience with Thailand and ASEAN but also reinforces Canada–Thailand relations in advancing greenhouse gas reduction, a critical global agenda, alongside expanding trade and investment opportunities between our countries.”


India: Around 15t of illegal narcotic drugs, valued at US$902,000, were incinerated at Ultratech’s cement manufacturing plant in Khor, Neemuch district, Madhya Pradesh, as part of a major operation by the Ministry of Home Affairs. Deputy Inspector General of Police (DIG) Nimish Agrawal said the drugs had been seized in about 200 cases registered across seven districts of the Ujjain range. He added that the contraband was destroyed in line with prescribed procedures.


China: Data from the National Bureau of Statistics of China shows a 5% year-on-year decline in cement production in the first eight months of 2025, to 1.11Bnt. Production was 148Mt in August 2025, down by 6% year-on-year but up by 1% month-on-month. In the previous month, July 2025, the country produced its lowest monthly volume of cement since 2009, at 146Mt. Price reporting agency Platts said that the decline was due to reduced domestic demand, precipitated by a prolonged real estate sector downturn and sluggish infrastructure investment.

A representative of a local cement retail company reportedly said "We expect a similar trend in 2026, with full-year cement production likely declining by another 5 – 8% year-on-year."


Zimbabwe: PPC’s cement sales rose by 22% year-on-year during the four months to 31 July 2025 as demand surged, boosted by a 30% tariff on imports introduced in May 2025. The tariff was introduced through Statutory Instrument 50A of 2025, under a plan to bolster local production by cutting reliance on imports, and to support domestic manufacturers, according to The Chronicle newspaper.

In a statement accompanying financial results for the period, PPC said “Cement sales volumes in Zimbabwe increased by 22% in the current period compared to the comparable period, largely as a result of a combination of strong consumer demand and the positive impact of the introduction of a 30% tariff on imported cement in May 2025.”


North Korea: State-controlled media has reported that the Sangwon Cement Complex has carried out its third quarterly national economic plan according to schedule. It said that the complex took measures to operate equipment at full capacity and ‘conducted the operation and command in a meticulous way.’ It reportedly increased production by 108% compared to the third quarter of 2024.


India: Noida International Airport (NIA) has become India's first large-scale project to utilise limestone calcined clay cement (LC3), a low-carbon alternative to traditional cement. In a statement, concessionaire Yamuna International Airport Private Limited (YIAPL) said LC3 was used extensively in the construction of the airport.

Developed for more than 10 years by researchers at IIT Delhi, IIT Madras, Swiss Development Cooperation, École Polytechnique Fédérale de Lausanne (Switzerland), Universidad de las Villas (Cuba), and Technology and Action for Rural Advancement (TARA), LC3 emits up to 40% less CO2 than conventional Portland cement. It costs 25% less to produce, uses low-grade limestone and clays and requires lower energy for manufacturing while delivering comparable strength.


Senegal: The Ministry of Environment and Ecological Transition, with the support of the United Nations Climate Technology Centre and Network (CTCN) and funding provided by the European Union through the Innovative Climate Solutions (ICS) Programme, held a workshop in late September 2025 to launch the development national roadmap for decarbonisation in the cement industry. The initiative, implemented by Cementis, aims to reduce CO₂ emissions in cement production in the country by optimising industrial processes and adapting the energy sources used.


World: Price reporting agency Platts, part of S&P Global Energy, has collated the latest data on the global seaborne cement trade in the first half of 2025. Citing research by shipbroking house Howe Robinson Partners, it reported total volumes of 107Mt in the six-month period, up by 7% year-on-year from 100Mt in the first half of 2024. This is the largest global first-half volume recorded since 2021. Full-year seaborne cement trade volumes were 207Mt in 2024, up by 1.5% from 204Mt in 2023.

Vietnam and Türkiye remained the leading global cement exporters, with 16.1Mt and 12.5Mt, 15% and 12% of the total, respectively. Both countries slightly increased their export volumes. Next up in the rankings, Egyptian shipments rose by 14% to 10.9Mt, overtaking Iran, with 6.5Mt (down by 10%). Other rapid growth geographies included Indonesia, with 7.2Mt (up by 22%) and Pakistan, with 4.4Mt (up by 26%).

On the import side, despatches to the US fell by 1% to 11.4Mt, while Bangladeshi imports rose by 9% to 8.7Mt. West Africa was the largest regional market in terms of volumes. It imported 11.8Mt, up by 17%.


Pakistan: Listed cement producers closed the 2025 financial year (ending 30 June 2025) with their best results in several years, posting a combined after-tax profit of US$593m. This was an increase of 38% from US$431m in the 2024 financial year. Revenue for the sector rose by 7% to US$3.1bn, supported by stronger retention prices, cheaper coal and greater reliance on efficient power sources, which lifted gross margins to 31%. Cement dispatches increased by 2% to 37.4Mt for the year, reflecting a modest rebound in volumes alongside firmer pricing. In the fourth quarter of the 2025 financial year, sales grew 5% year-on-year, with dispatches up 4% to 9.3Mt.


India: Gebr. Pfeiffer has officially inaugurated its new manufacturing site in India, just one year after construction began, according to a Linkedin post. The facility is positioned as a key addition to the company’s global production network, complementing its existing base in Germany. Gebr. Pfeiffer said the project strengthens its international footprint while also aligning with long-term goals of efficiency and sustainability.


Saudi Arabia: Southern Province Cement has signed a 25-year solar energy power purchase agreement (PPA) with Tarshid Energy Solutions for its Bisha cement plant. The company said it will pay an average of US$1.07m/yr under the agreement. The solar power will reportedly be purchased at a cost lower than the company’s current electricity supply.

Construction of the solar system will begin on 1 October 2025, with operations expected to start in the third quarter of 2026. Southern Province Cement said that it will not require project funding, as it will not bear any capital or operational expenses. The company did not disclose details on the capacity of the new solar power plant.


Pakistan: Burj Clean Energy Modaraba (BCEM) and Power Cement (PCL) have signed a ‘green’ captive power transaction, a US$5.3m project to establish a 7.5MW wind captive power plant.

The deal is backed by a finance facility arranged by The Bank of Punjab, with participation from the National Bank of Pakistan and Pak Kuwait Investment Company. Power Cement said the initiative will allow it to generate clean and reliable electricity on-site, reducing reliance on fossil fuels and supporting Pakistan’s wider clean energy goals.


Romania: Minister of Economy Radu Miruta has asked the European Commission to consider restricting cement imports from outside the EU, following complaints from local producers about unfair competition. According to Miruta, cement imports from non-EU neighbours have increased sharply, because they benefit from exemptions on environmental standards and carbon certificate costs that EU producers must bear.

The minister has reportedly met with Denis Redonnet, Deputy Director-General of DG Trade at the European Commission, and an official request for the analysis of the imposition of a limit on the quantities of cement imported from non-EU countries will be sent to Brussels. Romanian cement producers argue that cheaper imports are eroding competitiveness and threatening domestic output. The European Commission has the power to investigate and, if necessary, introduce safeguards to protect EU industry from market distortions caused by imports.


US: Total shipments of Portland and blended cement, including imports, were an estimated 9.16Mt in June 2025, a 2% decrease from 9.40Mt in June 2024, according to the latest US Geological Survey data. Shipments for the first six months of 2025 reached 47.0Mt, down by 5.3% year-on-year. The leading cement-consuming states were, in descending order, Texas, California, Florida, Ohio, and Illinois, which together accounted for 38% of total shipments in June 2025.

Clinker production, excluding Puerto Rico, was estimated at 6.29Mt in June 2025, down by 2% from 6.40Mt in the same month of 2024. For the first half of 2025, clinker output reached 30.8Mt, an 8% decline from 33.6Mt in the same period of 2024. Cement and clinker imports, including those through the San Juan customs district in Puerto Rico, totalled 2.61Mt in June 2025, an 11% increase compared with June 2024. Imports for the year to June 2025 reached 12.4Mt.


Zimbabwe: Khayah Cement has secured a US$60m rescue package from East African producer Hima Cement after creditors and shareholders unanimously approved a corporate recovery plan. The agreement will allow for debt settlement, refurbishment of the Harare plant and a return to sustainable operations, according to The Sunday Mail.

Corporate rescue practitioner Balisa Mbano said the approval marked a major turning point for the company, which has struggled with debt and operational inefficiencies. “The positive is that all creditors will be paid down in a compromise amount and settled immediately. This gives the company immediate relief and the breathing space to focus on growth rather than liabilities,” he said.

In the short term, Khayah Cement will stop clinker imports and instead produce locally, securing supply reliability. The phased investment will cover both working capital and capital expenditure. The full implementation of the recovery plan is targeted within six months, with completion targeted for March 2026. Khayah Cement operates a 450,000t/yr plant in Harare, and has faced foreign currency shortages, high operational costs and equipment breakdowns in recent years, leading to its placement under corporate rescue in 2022.


Mauritania/Algeria: Ciment du Nord has signed a supply agreement with Algeria’s state-owned Groupe Industriel des Ciments d’Algérie (GICA). The deal marks the first direct partnership between the two companies and will set clinker export volumes to Mauritania, with pricing terms still reportedly under negotiation.

“Thanks to this agreement, we will import the raw materials needed to manufacture cement directly from Algeria. The Mauritanian market is important, and this partnership will have a positive impact,” said Mohamed Abdallah Ould Zein, CEO of Ciment du Nord. Ould Zein added that the agreement is expected to strengthen Mauritania’s cement industry by securing direct clinker supply from Algeria and reducing reliance on intermediaries.


France: Switzerland-based F. Scott Group is seeking public opinion on its plans to build a new cement plant, named Coastline West, at the multi-bulk terminal of the port of Montoir-de-Bretagne near Saint-Nazaire, according to Ouest-France. The €55m project, covering 6.4 hectares, is now under public consultation until 15 October 2025. Raw materials such as limestone and slag will be shipped in by boat and transported by truck to the site, with traffic reportedly expected at around 13 trucks per day. The proposed facility will employ 35 people once operational.

Finished cement will be shipped by both truck and rail, with construction expected to take 18 months, requiring around 50 workers on-site during the building phase.


UK: Heidelberg Materials has reached a Final Investment Decision (FID) with the UK Government for its carbon capture and storage (CCS) project at the Padeswood cement works in north Wales, clearing the way for construction to begin later in 2025.

Energy Minister Michael Shanks announced the decision today, which will enable Heidelberg Materials to produce net-zero cement by 2029. The project will capture around 0.8Mt/yr of CO₂, approximately 95% of emissions from the cement works, and transport them via pipeline for storage under Liverpool Bay as part of the HyNet North West project.

Simon Willis, CEO of Heidelberg Materials UK, said “Our constructive partnership with the UK Government has allowed us to reach this major milestone, which is fantastic news, not just for us, but for the industry as a whole. Our new facility at Padeswood will be a world-leader. It will allow us to produce evoZero carbon captured net zero cement, which will help the UK construction industry reach its decarbonisation aims.”

The project is expected to create 50 new jobs, and generate up to 500 more during construction. It is the UK’s first full-scale CCS project for cement and follows Heidelberg Materials’ recent success in Norway, where it launched the world’s first carbon capture facility at its Brevik cement plant in June 2025. Here, 50% of the plant’s emissions are being captured as part of the Norwegian government’s Longship programme.

The UK-based Mineral Products Association (MPA) has celebrated this step, with Dr Diana Casey, Executive Director for Energy and Climate Change, Cement and Lime, saying “The green light for the UK’s first carbon capture-enabled cement plant at Padeswood is a landmark step on the road to decarbonising our domestic cement industry – it will safeguard existing skilled jobs and create new opportunities too. Public investment in this project provides a strong vote of confidence in the technology and recognises the vital role cement plays in supporting economic growth while delivering on the transition to net zero. Decarbonising heavy industry is not only essential for meeting climate goals, but also for securing the future of communities across the country – today’s announcement delivers on both.”


Sierra Leone: IFC, a member of the World Bank Group, has announced a US$24m financing package for MACCEM Industries to build and operate a new cement grinding plant in Freetown. The project aims to reduce Sierra Leone’s reliance on cement imports, improve access to locally produced building materials and create new jobs. The package includes a US$12m loan from IFC’s own account and an additional US$12m from the IDA20 IFC-MIGA Private Sector Window Blended Finance Facility. The new plant has a planned capacity of 657,000t/yr and is expected to meet up to 65% of the country’s domestic cement demand. It will also reportedly integrate solar energy into its operations.

Ahmad Mackie, CEO of Maccem Industries, said “Together we are building the country’s first cement grinding plant in four decades, a project that will reduce import dependency, create jobs, empower local businesses, and set a stronger foundation for sustainable and inclusive growth.”

Abdu Muwonge, World Bank Group joint country representative in Sierra Leone, added “IFC’s partnership with MACCEM will support the development of housing and vital infrastructure such as roads, housing, water systems and energy projects.”


Belarus: The country’s cement sector is intensifying efforts to use refuse-derived fuel (RDF) in cement production, according to the state information agency Belarus Telegraph Agency.

Belarusian Cement Company introduced an RDF processing line in 2021 at OAO Krasnoselskstroymaterialy in Grodno Oblast, enabling full incineration of RDF supplied by local waste-processing plants. Contracts are reportedly already in place with RDF suppliers for 25,000t of the fuel to be delivered by the end of 2025.

In September 2025, industrial trials of RDF made by Minsk-based Ekores will begin. If successful, shipments from the company could double from 15,000t to 30,000t, raising total RDF use to 40,000t in the final quarter of 2025.

Plans are also underway to expand RDF infrastructure in 2026, with a regional municipal waste management and RDF production complex under construction near Volkovysk.


India: Penna Cement Industries, a subsidiary of Ambuja Cements, has commissioned a 2Mt/yr brownfield expansion of its cement grinding unit in Krishnapatnam, Andhra Pradesh. With this commissioning, Ambuja Cement’s consolidated cement capacity has risen to 106.45Mt/yr.


Saudi Arabia: Southern Province Cement announced that its memorandum of understanding (MoU) with Yanbu Cement, aimed at assessing the feasibility of a potential merger, has expired without conclusion. The MoU was first signed in June 2024 and extended in June 2025 for an additional three months. That extension lapsed on 22 September 2025, Southern Province Cement said in a filing to the Saudi Stock Exchange.