Displaying items by tag: Closure

India: The Karatoya cement plant in Rajganj, West Bengal, will suspend operations for two months following the termination of its commercial agreement with a business partner, according to The Siliguri Times. The closure affects around 80 permanent and temporary workers, who staged a protest outside the plant. The company had reportedly been producing cement under contract for a ‘reputed’ cement brand for several years. The plant initially operated independently before transitioning to contract production.

Tapan Dey, president of workers organisation INTTUC Jalpaiguri district, said that plant management must provide at least two months of financial support to affected workers and that the matter would be raised with the Jalpaiguri Deputy Labour Commissioner.

On 9 June 2025 the Nepalese government announced the shock closure of the state-owned Udayapur Cement Industry, which operates the 0.4Mt/yr Jaljale cement plant in the high-altitude Terhathum District.¹ No express reason for the closure has been forthcoming. A little digging is therefore required…

Nationally, Nepal is home to 13 integrated and 16 grinding plants,² which sounds like a lot. However, with a total capacity of 12.3Mt/yr between them, each plant – many of which are quite aged and in need of modernisation - has an average capacity of 0.4Mt/yr. Amid chronic low demand, the capacity utilisation rate in some regions is as low as 40-50%.³

The planned closure of the Udayapur Cement Industry is all the more surprising considering that it only resumed operations on 24 April 2025 following the suspension of operations at the end of November 2024. The plant resumed production at 400t/day, half of its capacity, despite a US$42m upgrade as recently as February 2022 that had expanded it from 0.3Mt/yr to 0.4Mt/yr!

Upon re-opening in April 2025, the plant said that it had sufficient coal to maintain operations for at least 12 days and that it had a secure supply of electricity from the state-owned Nepal Electricity Authority (although it did also have unpaid electricity bills…). It has since been able to secure more coal, which must be imported through tortuously narrow passes from India. As well as securing coal, the plant’s altitude, some 1800m above sea level, complicates electrical infrastructure supplies. Back in 2019, the pre-expansion Jaljale cement plant was reduced to periods of just 13% capacity utilisation, with power cuts occurring at a rate of more than 60 in a single year, with six once hitting in a single day.

Back to the current year, Nepali cement producers faced an additional challenge on 15 February 2025, when a court issued a ‘show cause’ notice over seasonal price rises that had taken effect in December 2024. Bizpati News reported producers’ explanations that they were not in a cartel, including the admission that they were already operating at a loss.⁴ The situation got worse on 4 June 2025, when the government raised sales taxes from US$0.08/bag to 5% of the sales’ value.⁵ In order to protect their margins, producers raised prices by US$0.15-0.18/bag. According to Ravi Singh, president of the Federation of Contractors’ Associations of Nepal, this has meant that contractors are now struggling to purchase cement. He accused manufacturers of cutting production by up to 40% to create an artificial shortage, calling it ‘a tactic to manufacture scarcity and exploit the situation.’ Producers defended the price rise, claiming it corrects previous underpricing caused by ‘unhealthy competition.’

Regardless of who can shout the loudest, it is clear that there is just too much cement capacity in Nepal. While exports to India, itself not completely lacking in cement, have helped, more plants are likely to close. Back in Jaljale, Udaypur Cement Industry’s workers, their families, other local stakeholders and political parties have united in signing a memorandum of understanding in opposition to the closure. They too are asking: Why call time on a plant that was recently upgraded… and how can we keep the gates open?

References

1. https://www.globalcement.com/news/item/18859-nepali-government-announces-shock-closure-of-udayapur-cement-industry
2. Global Cement Directory 2025, Pro Global Media Ltd., Epsom, UK, 2025.
3. https://www.globalcement.com/news/item/17800-nepal-exports-us-3-81m-worth-of-cement-to-india-via-kakarvitta-crossing-in-2024-financial-year
4. https://bizpati.com/industry/88192
5. New Business Age News, ‘Cement price rises to Rs. 22 per bag,’ 4 June 2025, https://abhiyandaily.com/article/simenttko-muuly-boraamai-22-rupaiyaansmm-bddhyo

Nepal: The government plans to shut down Udayapur Cement Industry, which operates the Jaljale cement plant, in mid-July 2025. The República newspaper has reported that the government has received a memorandum of understanding (MoU) signed between workers, local people and political parties to contest the closure. Critics reportedly accuse the government of trying to bankrupt the company in order to sell it.

Mozambique: The closure of the largest cement plant in Sofala has led to an acute cement shortage in Beira, according to local news reports. Local retailers are now relying on two plants in Dondo, 30km from Beira, but these reportedly cannot meet demand, leading to a rise in prices by some sellers. The government’s Industry and Commerce sector has denied the existence of a ‘cement crisis’.

Kenya: Mining and Blue Economy Cabinet Secretary Hassan Ali Joho has ordered the closure of the Simba Cement plant in Kilifi County due to pollution concerns. Residents have reported issues from stone blasting and dust, with one resident reporting that early morning blasting has caused ‘cracks’ in their house and exposed families to respiratory diseases, according to the Kenyan Post newspaper. It was also reported that the company has allegedly displaced residents to expand its mining operations.

US: Dragon Products reportedly plans to lay off six employees at its Thomaston, Maine, cement plant later in 2024, in the plant’s on-going transition from cement production to distribution only. This will reduce the plant’s total employees to 20, down by 76% from 85 at the start of the year. Local press has reported that rising operating costs, including for energy and transport, led to the move.

The Thomaston plant continues to process ‘residual’ raw materials and has begun implementation of its new distribution strategy, taking delivery of 30,000t of bagged cement via the port of Searsport. A second delivery is scheduled for October 2024.

Philippines: James Hardie has shut down its HardieFlex fibre cement board plant in Cabuyao, Laguna, ending over two decades of operations. The company will cease all commercial operations in the Philippines in the coming months.

Switzerland: Holcim will close its historic site in Holderbank, Argovia, relocating approximately 200 employees to its headquarters in Zug from 2026. This move ends Holcim's 114-year presence in its founding location. Holcim will provide financial assistance for relocation or for those whose commute is affected, according to The Geneva Tribune. Prior to the transfer, the Zug headquarters will undergo renovation and expansion, eventually accommodating over 400 staff.

A spokesperson for Holcim said "The merger of the site and offices will not lead to any job cuts. There will be no layoffs."

Ghana: The Ghana Standards Authority (GSA) is set to close down several cement manufacturing firms for producing low-quality products, as part of its effort to combat substandard cement production nationwide, according to Adom Online. This initiative aligns with the protections outlined in the Ghana Standards Authority Act 2022. Currently, there are only 14 licensed cement plants in Ghana.

Director General, Alex Dodoo, said "The GSA has done research and we have noticed that some particular players believe that the only way to compete is to reduce the quality of cement. We have closed three of them and I can assure you that in the coming days a lot more will be closed down. If there is one thing we will not compromise on, it is quality.”

Spain: Heidelberg Materials, the owner of Cementos Rezola, has announced a restructuring plan that will affect 56 employees, roughly half of the workforce at the Añorga plant in Donostia. This decision comes as part of an employment regulation filing (ERE) linked to the cessation of clinker production in a move towards decarbonising cement manufacturing.

The company has proposed 15 early retirements, 30 internal relocations (to other plants within the group) and 11 external relocations. Unions have clarified that of the internal transfers, 15 positions are offered at the Arrigorriaga plant in Bizkaia. Management stated that those not interested in relocation options within the group will be offered external relocation solutions and can avail of measures the company will implement to assist in finding new employment in the labour market.

The company said “The ERE targets positions that are no longer required as a result of the cessation of clinker production, necessary to meet decarbonisation obligations.”
Despite the significant impact of the ERE, the company highlighted that this represents a proportion ‘substantially lower than the decrease in activity volume’ at the Añorga plant. It also confirmed plans to continue cement production in Añorga using clinker produced at the ‘more efficient plant in Arrigorriaga’.

This transition will support a €32m investment from 2024 to 2026 aimed at decarbonising both plants. Half of this investment will be allocated to the Añorga plant to transform it into a facility specialising in ‘sustainable’ cement.