Displaying items by tag: Australia

The Indonesian Cement Association (ASI) has warned that cuts to the Nusantara Capital City project had reduced cement sales so far in 2025. Yet also this week the ASEAN Federation of Cement Manufacturers (AFCM) launched its 2035 AFCM Decarbonisation Roadmap. Here is a round-up of recent news from the cement sector in Indonesia.

ASI data shows that local cement sales volumes fell by 2.5% year-on-year to 51.9Mt in the first 10 months of 2025 from 53.2Mt in the same period in 2024. Cement production decreased by 5.6% to 52.9Mt. Lower demand was reported in Kalimantan and Java. However, it rose in Sumatra and Nusa, in part, due to road construction. Sadly, Sumatra has been badly affected by floods this week. National cement exports grew by over 20% to 1.1Mt. The ASI is currently hopeful that a government-backed home renovation programme might stimulate demand.

Graph 1: Domestic cement sales and exports in Indonesia, 2019 - 2025. Source: Indonesian Cement Association (ASI). Note: Figure estimated for 2025, exports include cement and clinker.

The general picture can be seen above in Graph 1. The local cement sector has generally had a capacity utilisation issue since the mid-2010s. Domestic sales started to catch up but the Covid-19 pandemic disrupted the market. Meanwhile, exports of cement and clinker have been steadily rising since 2014. These are dominated by clinker exports, with the single largest destination being Bangladesh. Other major targets include Taiwan and Australia. The country’s relatively low consumption of cement per capita suggests that the utilisation rate will grow over time.

The local production market is dominated by state-owned Semen Indonesia (SIG) (with a 48.5% share), followed by Indocement (29.1%), Conch Cement Indonesia (7.1%) and Cemindo Gemilang (6.6%). SIG’s sales volumes in the first nine months of 2025 roughly follow the general trend reported by the ASI with local sales down by 1.8% year-on-year to 27.5Mt and exports up by 25.3% to 5.1Mt. The group’s sales revenue and earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 3.8% to US$1.52bn and 23.8% to US$198m respectively. Indocement’s revenue fell by a similar rate. Both companies anticipate a modest recovery in 2026.

Something to note from SIG’s financial results and related discussions in 2025 (and earlier) has been its approach to marketing and selling its cement brands in a highly competitive environment. It says it changes its brand mix in different regional locations with varying combinations of market leaders with premium pricing and so-called ‘fighting brands’ with competitive pricing. Yet, eco-brands received a mention in addition to the other two groups in the third quarter report analysts’ discussions suggesting an appetite for potentially lower-clinker cements in a developing market such as Indonesia.

This leads to the second Indonesia-related news story of the week: the 2035 AFCM Decarbonisation Roadmap. The plan intends to reduce net CO₂ emissions from the cement sector in the region by 16% to 190Mt/yr from 228Mt/yr in 2020. 58% of this reduction will be achieved through the use of alternative fuels, 33% via the use of low-carbon cements and 9% through the use of renewable energy sources. Work towards carbon capture, utilisation and/or storage (CCUS) is starting with the aim of supporting capture pilots in the region and planning towards CO₂ transport and storage networks. Similarly, the roadmap urges producers to identify and prepare to use new secondary cementitious materials such as calcined clay and construction and demolition waste.

The race between capacity building and market share has been a familiar one in coverage of the cement market in Indonesia in recent decades. Provided the main companies can endure the competition, it looks set to continue, while demographic trends indicate the need for continued investment. Otherwise more market consolidation is to be expected when the utilisation rate dips too low. What is new though are the higher levels of blended cements and the changes this brings to the market. This can be seen above in the marketing strategy of SIG and the regional decarbonisation strategy. Similar trends are happening everywhere but the effects on a highly competitive market could be pronounced. Particularly if those government-backed schemes that the sector anticipates promote it.

The Global CemFuels Asia Conference will take place on 2 - 3 February 2026 in Bangkok

Australia: The Cement Industry Federation has appointed Denise Sparks as its CEO with effect from 17 November 2025. She has held senior roles in the Australian and Queensland governments. The CIF says she brings experience in strategic stakeholder engagement and industry advocacy to the role. The CIF is the industry association for manufacturers of clinker, cement and cement products in Australia.

Switzerland: The first nine months of 2025 yielded a 2% year-on-year decline in sales for Holcim, from US$15.3bn to US$15bn. Nonetheless, the company succeeded in raising its recurring earnings before interest and taxation (EBIT) by 2% to US$2.86bn. It recorded year-on-year organic growth of 3% in sales and 11% in EBIT. Holcim noted the centrality of sustainability in its growth in the period. Its sales of ECOPlanet reduced-CO₂ cement rose from 32% to 35% of total cement sales, while its sales of ECOPact reduced-CO₂ concrete sales from 26% to 31% of total ready-mix concrete sales. Its use of construction-demolition materials (CDM) in production rose by 20% year-on-year.

During the period, Holcim continued its on-going diversification through the acquisition of Germany-based walling systems producer Xella. At the same time, the company’s cementitious division continued to target ‘profitable growth in highly attractive markets,’ as exemplified through its Australia-based joint venture Cement Australia’s acquisition of BCG Cement. Across all divisions, Holcim closed 14 value-accretive transactions in the period. It spun off Holcim North America and sold its Nigerian cement business and Iraq-based Karbala Cement Manufacturing.

CEO Miljan Gutovic thanked Holcim’s 45,000 employees, saying "We are delivering on Holcim's vision to be the leading partner for sustainable construction. With accelerating net sales growth in the third quarter of 2025, we delivered strong profitable growth for the first nine months of the year, with a 10% increase in recurring EBIT in local currency and an industry-leading margin of 19%. Margin expansion was driven by our high-value strategy, scaling up our sustainable offering to meet customer demand, and accelerating decarbonisation and circular construction for profitable growth.” Gutovic confirmed Holcim’s full-year guidance for 2025, namely: recurring EBIT growth of 6 – 10% in local currency, with a margin of above 18% and free cash flow before leases of US$2.51bn.

Australia: Boral has applied to extend its Montrose quarry in Victoria. The Star Mail newspaper reported that the company proposes to expand the quarry’s extraction area by 12.5ha, allowing access to a further 20Mt of additional materials, equivalent to 30 years’ supply for Boral’s local operations.

Australia: Zeotech has executed a non-binding memorandum of understanding (MoU) with Cement Australia to exchange information and conduct testing for the company’s AusPozz high-reactivity metakaolin product. The collaboration will assess AusPozz’s technical performance and value, alongside evaluating Cement Australia’s infrastructure and supply chain options, with the aim of advancing its commercialisation.

Cement Australia general manager sales, marketing and risk Phil Halpin said “Cement Australia is pleased to enter this arrangement with Zeotech. The company’s high-grade kaolin has strong potential as a viable feedstock for producing high-reactivity metakaolin. Our planned technical assessment of AusPozz will focus on validating its performance as a supplementary cementitious material (SCM) for low-carbon concrete applications. In parallel, Cement Australia will undertake a detailed evaluation of the infrastructure and end-to-end supply chain requirements.”

Zeotech executive director Shane Graham said “We are pleased to be partnering with one of Australia’s largest suppliers of building materials. The MoU provides a framework for ongoing collaboration aimed at accelerating the development of AusPozz and evaluating pathways toward commercial-scale production. This partnership represents an important step in supporting the decarbonisation of the built environment through the development of high-performance, low-carbon construction materials.”

Australia: US-based Martin Engineering has appointed Darren Gilbert as the managing director of its business in Australia. During his 30-year career, Gilbert has worked for companies in Australia, China and Germany including Rema Tip Top, VLI and Continental. He has led corporate divisions in China and India, mainly focusing on selling conveyor components and establishing service teams.

Australia: Tana Australia has appointed Al Garcia as Country & Sales Director. He will take up the position from 28 July 2025. Garcia brings over 30 years of experience in the heavy equipment industry.

Australia: Boral’s Berrima Cement Works celebrated a milestone of using more than 100,000t of alternative fuels in cement manufacturing at its facility during the 2025 financial year, according to a post by the producer on Linkedin. The facility displaced over 80,000t of coal. The fuels included high-biomass waste and tyres, which were diverted from landfill.

Boral said that it has achieved over 30% thermal energy substitution in the plant’s kiln, with successful trials reaching 45%. With recent upgrades such as the chlorine bypass and further infrastructure investment, the company targets 60% substitution in coming years.

Australia: Green360 Technologies has launched a 457t bulk calcining run of high-purity kaolin from its Pittong operation in Victoria to produce high-reactivity metakaolin as a substitute for Portland cement.

The calcined product, made from raw ore and reclaimed tailings, will be despatched for testing by industry and government partners. Assessments will focus on compressive strength, durability and resistance to environmental stressors.

Executive chair Aaron Banks said “We have rapidly moved from laboratory-scale testing to now producing commercial quantities of our innovative, high-quality metakaolin product.”

He added “Our low-carbon cement formulations and high-quality, advanced metakaolin can help potential customers, from government to private industry, reduce their usage of Portland cement without compromising on performance or cost.”

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.