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The Deputy Prime Minister of Egypt met with representatives of the cement sector last week to discuss the local market. The key topics were prices, increased production capacity and restarting suspended production lines. Then this week it was revealed that the government was preparing to issue two new cement plant licences by the end of 2025. So, what’s been happening in the local sector?

Readers may recall that the Egyptian government tackled overcapacity issues by way of cement production quotas back in 2021. This solved the immediate problems at the time but, since then, there has been a growing problem with local producers focusing on export markets to the detriment of the domestic market. For example, there was a shortage of cement reported in mid-2024 due to a shortage of trucks. Large quantities of these were being used, it transpired, to transport cement to neighbouring Libya. For more on this read Global Cement Weekly #760.

The price of cement peaked earlier in 2025. At this point the government took action by limiting cement exports to no more than 30% of a company’s production volume and by abolishing the quota system. It later reviewed the status of eight idle production lines in an effort to get them running again. Prices subsequently eased according to local media reports. Before the changes, the Cement Division of the Federation of Egyptian Industries said that the country had a production capacity of 76Mt/yr from 46 lines. Domestic consumption was estimated at 46Mt/yr and exports at 20Mt/yr giving a utilisation rate 87%. Note that this export figure is 30% of the total production of the country as a whole. For the first half of 2025, production increased by 24% year-on-year to 30.7Mt from 24Mt in the same period in 2024. Exports rose by 11.5% to 9.7Mt from 8.7Mt. However, data from Al Arabiya Business shows that exports fell by 25% in May and June 2025 following the government action. Production grew by 16%.

Vicat’s financial report for the first half of 2025 reported that export sales volumes in Egypt represented over 50% of the local subsidiary’s total sales volumes. It also noted that the domestic price surpassed the export price during the reporting period. Titan Group said that its local business had experienced an ‘impressive turnaround’ due to a construction boom in the country. It said that its plants operated at ‘high capacity’ with an alternative fuels (AF) thermal substitution rate of around 40%. It added that it was intending to expand storage capacity to support growing export volumes. By contrast, Cementir endured a tougher trading period due, in part, to less exports following technical problems related to the restart of a local production line.

A source quoted by Al Arabiya from the Export Council for Building Materials noted that there had been a ‘significant’ decline in exports to several major markets, including Libya, Lebanon, the US, Ivory Coast and Ghana. That anonymous source also warned that, if the problem with the domestic market could not be resolved quickly, then the sector risked losing export markets where reconstruction work was taking place. These comments were mirrored by Adam Khalil, a Building Materials Sector Analyst at Al Ahly Pharos Securities, who told local media this week that the anticipated reconstruction of Gaza presented benefits for Egypt-based construction and building materials companies. In particular, he noted the proximity of Sinai Cement to the Gaza Strip. Unfortunately, at the time of writing, the latest ceasefire between Gaza and Israel appears to have been breached.

The other part of the government action has been focusing on increasing AF substitution rates. At the meeting with the Deputy Prime Minister this month the stated aim was to reduce production cuts. To this end, a report on the number of waste recycling plants was reviewed and compared to the requirements of each cement plant. The government intends to set up ‘practical implementation mechanisms’ to maximise the usage of AF. Energy sources have been a particular bugbear for the cement sector in Egypt historically as the government has encouraged producers to switch fuels from time to time.

The wider economy in Egypt continues to face headwinds. Cementir, for example, in its half year report said that the country’s economy was “...being held back by high inflation, devaluation, rising energy costs, pressure on manufacturing industries and a revision of the state budget with the suspension of infrastructure projects.” However, the International Monetary Fund (IMF) upgraded its growth forecast for Egypt in 2025 and 2026 in mid-October 2025. The decision by the government to cap exports of cement and cut the production quota marks a serious change since 2021. It is clearly watching the situation closely. The timing from roughly in the middle of the year should make the effects clear to see in the annual reports in early 2026. We will wait until then.

Canada: Progressive Planet Solutions has hired Japan-based independent technical consultant Gerhard Albrecht. Albrecht’s work for Progressive Planet Solutions will focus on issues around the increased water demand of cement replacement by pozzolanic materials.

Albrecht has created over one hundred patents and appeared in more than 30 papers during his career as Vice President at Germany-based BASF Construction Solutions from 2006 to 2017. He previously held senior research positions at Degussa Construction Chemicals and SKW Trostberg. Albrecht holds a PhD in polymer science from Friedrich-Schiller University Jena, Germany.

Mexico: GCC reported sales of US$1.05bn in the first nine months of 2025, up by 2% year-on-year from US$1.03bn. The company’s US sales rose by 8% year-on-year to US$784m, while sales in Mexico fell by 13% to US$265m. Cost of sales rose by 9% year-on-year, resulting in earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$349m.

CEO Enrique Escalante said “While the third quarter of 2025 unfolded in a mixed environment, GCC executed with discipline and delivered revenue growth, underpinned by strong performance in our US concrete business.” Looking ahead to the current, fourth quarter of 2025, Escalante said “Our focus remains on rigorous cost control, plant reliability and investing to strengthen our network, supporting our long-term strategy to compound value into 2026.”

India: The National Company Law Tribunal (NCLT) has directed the initiation of insolvency proceedings against Jaiprakash Associates subsidiary Bhilai Jaypee Cement over debts owed to coal supplier Sidhgiri Holdings, amounting to US$5.12m. News18 News has reported that the NCLT has suspended the company’s board and appointed an interim resolution professional.

Sidhgiri Holdings sent a statutory demand notice in June 2024 over three partly-paid purchase orders for 6000t of coal between September 2021 and June 2022. The principal amount is US$3.43m, with US$1.74m in interest accrued.

Bhilai Jaypee Cement contested the insolvency plea, claiming that Sidhgiri Holdings filed it with an intent of recovery, because Bhilai Jaypee Cement is solvent.

US: Amrize has joined the American Cement Association (ACA), underscoring its commitment to advance the US building industry, according to the producer. Amrize Building Materials President Jaime Hill specified ‘American ingenuity, innovation, advanced production and jobs’ as areas for collaboration in the association.

ACA President and CEO Mike Ireland said "We are thrilled that Amrize has joined the ACA and will be contributing to our efforts to advance this industry's mission and objectives in the USA. From companies operating numerous plants, to those with one or two cement facilities — our shared goal is to produce the best materials America can provide."

The ACA’s existing members are committed to full decarbonisation by 2050. Amrize has yet to publish a sustainability strategy since its spin-off from Switzerland-based Holcim on 23 June 2025.

Canada: Progressive Planet Solutions has launched a new supplementary cementitious material (SCM) called Gladiator SCM. The company developed Gladiator SCM using its PozGlass recycled glass-based SCM with other more abundant materials. The company says that it has supplied a sample to a global cement producer for evaluation.

Asia: South East Asia's regional cement association, the ASEAN Federation of Cement Manufacturers (AFCM), has launched its AFCM 2035 Roadmap at its 46th Council Meeting at the Rizqun International Hotel in Bandar Seri Begawan, Brunei Darussalam. Under the roadmap, AFCM members will achieve a cumulative 38Mt reduction in CO₂ emissions by 2035. Efforts will unfold under four priority areas: promoting low-carbon cement, advancing the energy transition, maximising supplementary cementitious materials (SCMs) and adopting deep decarbonisation technologies. The council meeting served the members to help align their strategies, including through the proposed establishment of a unified emissions reporting system.

India: Ambuja Cements has placed a US$100m order for seven 19,000dwt bulk carriers from China-based Nantong Xiangyu Shipbuilding. The Economic Times newspaper has reported that the vessels will serve logistics operations at the company’s 6.1Mt/yr Sanghi Cement plant in Gujarat.

US: Researchers at Princeton University have developed cementitious composites with 17-times greater toughness and 19-times greater ductility than ordinary Portland cement (OPC). The materials are laser-processed into a grooved structure and laminated with elastomeric polyvinyl siloxane interlayers. The design is inspired by the nacre inner lining of seashells, also known as mother-of-pearl. This results in the toughening mechanisms of interlayer deformation, tortuous crack propagation and crack bridging. The composites have fracture toughness of 73.7MPa.mm^1/2, without any reduction in strength compared to OPC.

Switzerland: Measurements specialist ABB has published a new study about industrial downtime. The company, together with Sapio Research, surveyed 3600 senior decision-makers across various industries, including cement. The study showed that 44% of leaders experience equipment-related interruptions at least monthly and 14% at least weekly. Of those experiencing weekly interruptions, just 20% have a proactive modernisation strategy. A majority of respondents estimate the cost of these interruptions at US$10,000 – US$500,000/hr; 7% believe it is higher. 67% have upgraded their motors or drives in the past two years, and 55% plan to do so. Cost remains the top barrier to modernisation for 28% of industrial players.

ABB Motion Services Modernisation Programme Head Oswald Deuchar said "Unplanned downtime is costing industry up to half a million US Dollars per hour – yet one in three businesses hasn't modernised their motor-driven systems in the last two years. That's more than a missed opportunity, it's a silent crisis. Our research shows that those who shift from reactive firefighting to forward-looking life-cycle strategies experience fewer failures and greater resilience. A key challenge, though, remains in justifying the up-front investment.”