Global Cement News

UK: The UK cement industry has welcomed the government's proposal for a UK carbon border adjustment mechanism (CBAM) but urged for its implementation by 2026 to align with the EU CBAM and avoid competitive disadvantages. The Mineral Products Association (MPA) and UK Concrete responded to the government’s consultation, highlighting the need to level the carbon-cost playing field between domestic production and imports, as well as to prevent high-emission cement imports from impacting the UK market. It emphasised the urgency of introducing CBAM in 2026 rather than the proposed 2027, to prevent import diversion from the EU.

The MPA is calling for accurate measurement and reporting of embodied emissions by importers, clear calculation of CBAM rates, improved transparency in UK trade data and strict enforcement procedures with high penalties for non-compliance.

MPA executive director for energy and climate change Diana Casey said "The UK has a great opportunity to accelerate the transition to net zero while securing domestic cement supply for priority construction like housing and infrastructure. A well-designed CBAM is vital to maintain the level playing field and ensuring competitiveness of domestic cement production while it continues its transition to net zero.’

Philippines: A new 7-hectare port and industrial complex, valued at over US$51m, is under construction in Lemery, Batangas. The complex includes the Sinisian Lemery Batangas port and industrial park, Lemery cement silo tank and Lemery oil terminal, with each component costing around US$17m.

The port will support Panamax-sized vessels with a draft depth of 15m, while the cement silo will hold 60,000t of bulk cement and slag. The project is expected to generate at least 200 jobs and help meet the country's fuel security needs amidst ongoing global supply chain disruptions.

Australia: CRH has won approval from Adbri shareholders to acquire 57% of the company for close to US$1.4bn. The deal was the result of a unanimous vote in favour on 12 June 2024.

Adbri’s lead independent director and chair of its independent board committee Samantha Hogg said “A combined CRH and Adbri will bring growth opportunities, new talent and innovation to continue to strengthen Adbri’s product offering in Australia.”

India: Adani Group is exploring potential acquisitions of several cement companies including Penna Cement, Saurashtra Cement, the cement business of Jaiprakash Associates and Vadraj Cement owned by ABG Shipyard. The group plans to invest US$3bn in these acquisitions to potentially surpass its rival, UltraTech Cement, within three to four years.

The group is ready to offer an enterprise value of US$85-120/t for these businesses, focusing on those with expansion potential, limestone mines and packing terminals. These acquisitions are part of a strategic push to leverage the ongoing government-driven infrastructure boom, which is expected to increase demand significantly.

Pakistan: The Economic Survey 2023-24, unveiled by Finance Minister Muhammad Aurangzeb, reported that the capacity utilisation of Pakistan's cement industry fell to 54.6% in the first nine months of the 2024 financial year (July 2023 – April 2024), the lowest level recorded since data collection began in 2006. Despite an overall production capacity of 82.3Mt, the industry managed only 37.5Mt/yr in local dispatches and exports during the period.