Global Cement News

Producers and associations in India have been praising this week’s reduction in tax on cement. On 22 September 2025 the Goods and Services Tax (GST) rate on cement was cut from 28% to 18%. Local press showed examples of 50kg bags of ordinary Portland cement (OPC) dropping in price by 8% and Portland Pozzolana Cement (PPC) dropping by 11%.

Anoop Kumar Saxena, the CEO of Vicat’s operations in India, said its subsidiaries would be, “...passing on the complete benefit of this GST reduction to our customers across both our brands - Bharathi Cement in the South and Vicat Cement in Maharashtra.” Shree Cement’s chair HM Bangur echoed these comments. Similarly, the South Indian Cement Manufacturers' Association (SICMA) described the tax cut as a “particularly impactful move.” It went on to reiterate that the move would reduce construction costs to the benefit of both private builders, public housing and infrastructure projects.

Credit rating agency ICRA’s latest report on the cement sector in India has forecast that operating profit margins are set to rise by 12 - 18% to around US$10.50/t in the 2026 financial year (FY2026). The price of cement in India increased by 7.5% year-on-year from April to August 2025. Despite the current price drop though, an increase of 3 - 5% is anticipated for FY2026 as a whole. Cement sales volumes grew by 8.5% from April to August 2025 and are projected to increase by 6 - 7% to 480 - 485Mt in FY2026. ICRA noted that input prices are expected to remain stable in FY2026. However, it warned that petcoke and freight costs are linked to global crude oil prices and are exposed to global trends. That warning from ICRA is fitting given that one of the reasons the GST has been adjusted is widely interpreted to have been in response to the 50% tariffs that the US imposed upon India at the end of August 2025. The lower GST rates are expected to boost consumption but there are worries that this will come at the expense of reduced tax income and subsequent government spending.

For those unfamiliar with India’s tax system, the GST was introduced in 2017 as a way of simplifying some of the country’s central and state taxes. Broadly, it has been viewed as a success. It should also be noted that the current changes to GST mostly further simplify the tax from four bands to two. Yet, similar to Value Added Tax (VAT) in other countries, consumption taxes can create odd situations through their complexity. Typically this ends up with arguments over the classifications of goods and services for tax purposes. For example, in the UK the company that manufactures Jaffa Cakes infamously challenged the revenue authorities in the 1990s over whether their product should be classified as a biscuit or a cake for tax purposes! As the tax lawyer Dan Neidle joked, “any sufficiently detailed VAT rule is indistinguishable from satire.”

A cut to the price of cement in the world’s second biggest cement market is big news. It may be temporary if the analysts like ICRA are correct and prices carry on mounting. Cement producers - and other businesses along the supply chain - may also decide to withhold the tax cut either now or later on. Meanwhile, factors outside of India such as global fuel prices may exert themselves. For the time being though it’s a good news story.

US: Peru-based UNACEM has appointed Rafael Villalona as the CEO of its operations in North America.

Previously, Villalona was the CEO of Cemex in the UAE from 2020. He worked for the cement producer in various roles from 2007 starting in the Dominican Republic. He became the Country Manager for Jamaica in 2011, Haiti in 2015 and the group’s Vice President Commercial & Logistics based in Egypt in 2019. He was also the chair of the Mexican Business Council in the UAE in 2024 and 2025. Villalona holds an undergraduate degree in civil engineering from the Ohio State University and a master’s degree in engineering from the University of Maryland.

Sweden: Cemvision has appointed Michael Niska as its chief financial officer (CFO).

Niska holds over 15 years of experience of senior financial roles in the transport and climate technology sectors. He worked as the Head of Business Control at heat pump manufacturer Aria from 2023 to mid-2025. Notable roles before this include the Group CFO of transport company LOTS Group from 2019 to early 2023. He also worked for Scania from 2010 to 2017. Niska holds a master’s degree in Industrial Engineering and Management from Linköping University.

Mexico: The government of Campeche and directors of La Cruz Azul Cooperativa have officially launched the construction of the company’s new 1.0Mt/yr cement plant in Seybaplaya, Campeche. This will be the company’s fifth cement plant.

Gustavo Cruz Vega, director of new projects, said the plant will be “a modern automated facility, with 432 vibration measurement points, 600 temperature and vibration sensors, digital management and 100% advanced artificial intelligence, in addition to being able to generate clean energy and use alternative fuels.” He added that the plant’s systems will ‘guarantee zero dust emissions’ and low levels of pollutants.

He Xiaolong, vice president of China National Materials Group Corporation (SINOMA) and president of China National Building Material Group (CNBM) and Equipment Group (TCDRI), said this will be the first smart production line the consortium has built outside China, with 90% of the equipment designed and manufactured by its own engineering teams.

Ireland/UK: Mannok has completed a critical kiln repair at its cement plant during a scheduled maintenance shutdown, replacing the heavy shell section and drive tyre at Kiln pier 2.

The work addressed cracking in the shell section and realigned the kiln tyre, which posed a risk of operational disruption or failure if left unattended.

The project was carried out in collaboration with FLSmidth as the main contractor, Portuguese specialists Simetrexial and Mannok’s in-house team. Automated gas-cutting equipment was used to remove the damaged shell section, and a 100t lift plan was executed with the aid of a 700t crane. The new section was positioned and secured using sub-arc welding. The project was completed in 27 days without delays or complications, according to the producer.