Displaying items by tag: Bangladesh

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

Bangladesh: The Coast Guard arrested nine suspected smugglers and seized 450 bags of cement during an operation southeast of Cheradia. The cement, valued at around US$2000, was allegedly being transported to Myanmar to evade customs duties and taxes. Coast Guard Siam-ul-Haq intercepted a ‘suspicious’ fishing trawler at around 9:00am local time, according to local press, resulting in the arrests and seizure of the vessel and goods.

Bangladesh: Most cement plants are operating at less than 30% capacity, far below the global benchmark of 70–80%, according to the Bangladesh Cement Manufacturers Association (BCMA) via The Business Standard. National consumption fell to 38Mt in 2024, less than 40% of total capacity, and has declined further in 2025, forcing producers to cut output and lay off workers.

BCMA president Amirul Haque said “After Covid-19, we began recovering in 2021, driven by renewed construction. But since 2023, the situation has worsened drastically. Entrepreneurs expanded based on government demand. When projects slowed, we faced a severe cash flow crisis. Several small plants have already shut down.”

Bashundhara Cement, which has a capacity of 7.3Mt/yr, is reportedly running at 20% utilisation, while Mir Cement has reduced output to a quarter of capacity. Premier Cement is operating at around 40% capacity and Crown Cement has 60% of its capacity idle. Only Meghna Group of Industries reports growth, though utilisation remains 65%.

Bangladesh: The Coast Guard has arrested 24 smugglers and seized 850 bags of cement being trafficked by boat from Bangladesh to Myanmar in exchange for drugs.

Lieutenant Commander Siam-ul-Haq said the Coast Guard’s Chattogram Base launched the operation on 30 September 2025 after receiving confidential intelligence, according to local press. Officers intercepted a transfer of cement from a cargo ship to a fishing boat in the Bay of Bengal, bypassing customs and taxes. Two boats involved in the smuggling were confiscated.

The Coast Guard noted that cement smuggling through waterways to Rakhine has intensified in recent months amid deteriorating relations between the two sides.

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%.

Bangladesh: Crown Cement has approved the purchase of 1.34 hectares of land at West Mukterpur in Munshiganj at a cost of US$1.1m, according to a company disclosure. The acquisition is reportedly part of the company’s ongoing expansion strategy. Crown Cement’s total production capacity currently stands at 5.7Mt/yr, with the new land purchase set to strengthen its manufacturing base.

Tanzania: Elsawy Ahmed has resigned as the manager of Twiga Cement’s Wazo Hill plant. He had been in post at the subsidiary of Heidelberg Materials since 2017. He is now working as a technical consultant.

Elsawy started his career as a Quality Control Supervisor for Assiut Cement in Egypt. He later worked for Cemex Egypt and became a plant manager for Cemex in Bangladesh in the early 2000s. He joined Italcementi in 2006 becoming Maintenance & Project Manager for subsidiary Suez Cement in the mid-2010s. Elsawy holds a degree in chemistry from Assiut University.

Bangladesh: LafargeHolcim Bangladesh has reported a strong financial performance in the second quarter of 2025 and first half of 2025. The company recorded a 4% year-on-year growth in revenue in the first half, supported by strong market dynamics and ‘sustained trust’ in its brands. Its consolidated profit after tax for the second quarter increased by 20%. However, profitability was impacted by rising energy costs and falling cement prices, prompting cost-efficiency measures and strategic pricing reviews. It also noted that a specialised cement product, Water Protect and Fair Face, recorded 28% growth. The company reported that its diversification drive continued to yield results, including co-processing over 21,000t of waste via Geocycle, which replaced 11% of fossil fuels.

Bangladesh: The Bangladesh Cement Manufacturers Association (BCMA) has elected Mohammad Amirul Haque as its president for the 2025 - 2027 term. He will succeed Alamgir Kabir in the post, according to the Daily Observer newspaper.

Haque is the managing director of Premier Cement Mills. He holds over four decades of management experience in sectors including cement, liquefied petroleum gas (LPG), petrochemicals, shipping, agro-processing, edible oil refining and real estate. He is the founder and managing director of Seacom Group, and currently works as the president of the LPG Operators Association of Bangladesh (LOAB). Haque has also held directorial roles at both the Chittagong Chamber of Commerce and Industry and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI). He is an alumni of the University of Chittagong.

Bangladesh: Chhatak Cement’s plant in Sunamganj remains idle despite construction completing in March 2023, with production suspended due to unresolved gas and limestone supply issues, according to the Prothom Alo newspaper. The plant project began in 2016. New details confirm that the Bangladesh government has approved subcontracting of a cross-border ropeway to import limestone from India. Local firm Komorah Limestone Mining Company (KLMC), which already supplies limestone to Chhatak Cement, is in talks regarding the role. China-based contractor for the project, Nanjing Sea-Hope Cement Engineering, has agreed ‘in principle’ to this handover as of 18 March 2025, according to Chhatak Cement managing director Abdur Rahman.

Project officials stated that, once the new plant begins operations, it will be capable of producing 1500t/day of clinker and 500t/day of cement, triple its previous capacity. Reporters conducted a site visit on 8 April 2025, observing that a jetty had been constructed on the riverbank to unload clinker from the plant for grinding elsewhere. A conveyor system has been set up to move cement bags directly from the plant to transport, and a new conveyor belt has also been installed alongside the existing belt.