Global Cement Newsletter

Issue: GCW701 / 19 March 2025

Headlines


UBE Mitsubishi Cement recently released an update on its commercial scale demonstration using ammonia as a fuel at its Ube plant. It is currently testing the use of ammonia in both the cement kiln and calciner at the site. It has set the aim of reaching a 30% coal substitution rate with ammonia in the cement kiln by the end of March 2025. It has described the project as a world first. Planned future work includes running ammonia combustion tests alongside post-consumer plastics.

The company announced the three-year project in mid-2023. Utilities company Chubu Electric Power has been working on it and UBE Corporation has been supplying the ammonia for the test. The scheme dates back to before Mitsubishi Materials and Ube Industries merged their cement businesses in 2022. Ube Industries previously took part in a government research project looking at the topic, running combustion tests and numerical analysis in small industrial furnaces.

Another ammonia research project in the cement sector was revealed in 2024 by Heidelberg Materials in the UK. The company was awarded just under €0.40m in funding by Innovate UK through its UK Research and Innovation (UKRI) fund, together with engineering consultants Stopford and Cranfield University. The 12-month feasibility study aimed to assess the use of ammonia as a hydrogen carrier and evaluate the most economical method of on-site ammonia cracking to generate hydrogen for use by clinker kilns. It also intended to investigate the various tiers of the UK's existing ammonia supply chain network for the suitable transportation, offloading and storage of ammonia.

The UK project explained that it was looking at ammonia as a hydrogen carrier due to its high volumetric energy density. This, potentially, makes ammonia easier and cheaper to store and transport than hydrogen. It pointed out that storing and transporting hydrogen is difficult and the chemical is expensive. It also noted that the volumetric energy density of ammonia is 45% higher than that of liquid hydrogen. The benefit of switching to a zero-carbon fuel was that it could cut CO2 emissions by the cement and concrete sector in the UK by 16%.

The attraction of ammonia to the cement industry is similar to that of hydrogen. Both are versatile chemicals that can be produced and used in a variety of ways. The production processes and supply chains of both chemicals are linked. The Haber–Bosch process, for example, uses hydrogen to manufacture ammonia. It can also be cracked to release the hydrogen. When used as fuels neither release CO2 emissions directly. This comes down to the method of production. Like hydrogen, there is a similar informal colour scheme indicating carbon intensity (Grey, Blue, Green and Turquoise). Despite the advantages listed above, the disadvantages of using ammonia include toxicity and NOx emissions, as well as the fact that there is little experience of using ammonia as a fuel. The worldwide ammonia market was bigger by volume in 2023 with production of just under 200Mt compared to hydrogen production of just under 100Mt.

Back in Japan, the national government has been promoting the use of ammonia technology for the power generation sector. It added ammonia to the country’s national energy plan in the early 2020s following research on running power plants with a mixture of ammonia and coal. The ambition is to build up levels of ammonia co-firing at power plants, develop the necessary technology and grow supply chains. This, it is hoped, will broaden, diversify and decarbonise the domestic energy mix and pull together a new international market too. Unfortunately, this strategy has had criticism. One study by BloombergNEF in 2022 estimated, for example, that the electricity cost of Japan-based power stations switching to firing ammonia by 2050 would be more expensive than generation from renewables such as solar or wind.

This explains why the ammonia project by UBE Mitsubishi Cement is leading the way. The interest by a European cement company shows that others are thinking the same way too. Yet again, the potential decarbonisation solution for cement is likely to lead towards more complex industrial supply chains. The next steps to watch will be whether a cement plant in Japan actually starts to co-fire ammonia on a regular basis and if any more ammonia projects pop up elsewhere around the world.


Oman: Raysut Cement has appointed Jamal Shamis Saud Al Hooti as its chair. Khalid Masoud Ansari has been appointed as the vice chair and Liyutha Mohamed Sulaiman Al Ismaili has been appointed as the secretary of the board.


Finland: Tana Oy has appointed Jari Mennala as its CEO with effect from 5 May 2025. He succeeds Kalle Saarimaa who became the Chief Operating Officer and Executive Vice President of NG Group in February 2025.

Mennala was appointed as the Director of Worldwide Forestry Sales & Marketing and Managing Director of John Deere Forestry Oy in 2024. He has worked for John Deere since 2008 for its forestry division in Finland, the US and the UK. He holds a master’s degree in industrial management from Tampere University of Technology and an executive master’s of business administration from Aalto University in Helsinki.


Cameroon: Cameroon will increase its cement production capacity by 4.3Mt to 12.7Mt/yr by the end of 2025 with the addition of three new plants in Édéa, according to Business in Cameroon. The new facilities will help meet local demand and support exports.

The first plant, Sino Africaine (Sinafcim) is under construction and will have a 1Mt/yr capacity. It is set to begin production in April 2025. It will employ 200 workers and 90% will be Cameroonian. The second, Central Africa Cement (CAC), has been operational for several months with a 1.5Mt/yr capacity. It currently employs 100 people and aims to reach 200. The third, Yousheng Cement, is being built near Douala and will have a 1.8Mt/yr capacity. National demand in Cameroon is reportedly around 8Mt.


India: The Competition Commission of India has approved Ambuja Cements’ acquisition of Orient Cement, months after the Adani Group company announced the US$451m deal, according to The Economic Times.

Ambuja Cements first revealed plans to acquire Orient Cement in October 2024, intensifying its competition with rival UltraTech Cement.

The Indian cement sector has seen increased competition recently, with both UltraTech and Adani Group companies acquiring smaller firms to expand market share. Analysts had questioned whether the acquisition would secure regulatory approval due to industry oversupply concerns.


India: UltraTech Cement has increased its production capacity by 1.2Mt/yr through debottlenecking efforts. The producer said that it had identified multiple efficiency enhancement opportunities across various locations as part of its capacity expansion programmes. The additional capacity includes 0.8Mt/yr at the integrated Hirmi plant in Chhattisgarh and 0.4Mt/yr at the Roorkee grinding unit in Uttarakhand. Ultratech’s domestic cement capacity now reportedly stands at 179Mt/yr.


Spain: Cement consumption rose by 9% year-in-year in February 2025 to 1.27Mt, around 100,000t more than in February 2024, according to the latest statistics from Oficemen. Consumption for the first two months of 2025 reached 2.40Mt, up by 9%. In the 12 months to February 2025, total consumption rose by 4% to 15.1Mt.

“Although it is still early to make assessments, it is significant to note that last month was the February with the highest cement consumption since 2011, which confirms a certain continuity in the positive trend we experienced at the end of 2024 and which we expected to continue in 2025. Furthermore, our data is in line with other relevant indicators in the construction sector, whose performance is also positive, such as public tenders, which grew by 33.5% in January, and permits for new housing, which ultimately closed 2024 with 127,721 approved units,” said Oficemen general director Aniceto Zaragoza.

Exports fell by 15% to 0.3Mt in February 2025, a loss of 55,600t. In the 12 months to February 2025, exports fell by 5% to 4.80Mt.


Nigeria: Dangote Group has resumed construction of a 6Mt/yr cement plant in Itori, Ogun State, according to Business Insider Africa. Itori is 10km from Ewekoro, the site of a 3.9Mt/yr plant owned by Lafarge Africa. Construction of the plant is expected to be completed by November 2026. The company will also build ‘Nigeria’s largest seaport’ at the Olokola Free Trade Zone, also in Ogun State. The plant will have two lines and sits on 533 hectares of land.

Ogun State is already home to the 12Mt/yr Dangote Cement Plant in Ibese. Upon completion of the Itori project, the state’s total cement production capacity will reach 18Mt/yr. Dangote Cement reportedly has a production capacity of 52Mt/yr across Africa, with 70% of production in Nigeria.

Aliko Dangote said “We earlier on abandoned our vision of investing in the Olokola Free Trade Zone but, because of governor Dapo Abiodun’s policies and investor-friendly environment, we are back and will work with the government to return to Olokola. Plans are underway to construct the largest port in the country.”

He said that the nearly US$800m Itori cement plant should have been completed earlier, but was delayed due to opposition from former governor Ibikunle Amosun.


Japan: Mitsubishi UBE Cement Corporation has started a commercial-scale demonstration test using ammonia as a heat energy source in a cement kiln and calciner at Ube cement plant.

The project, supported by Yamaguchi Prefecture’s 2023 Carbon Neutral Complex Development Promotion Subsidy, follows an ammonia co-combustion test in 2023. In collaboration with UBE Corporation, a test facility for ammonia co-firing was installed.

The company has set a target of replacing 30% of its coal consumption with ammonia in the cement kiln, with similar levels targeted for the calciner by the end of the 2025 financial year. Mitsubishi UBE Cement is also planning further ammonia combustion tests with post-consumer plastics and other materials as energy sources.


Egypt: Arabian Cement Company has signed a 30-year power purchase agreement with IRSC for renewable electricity. The deal covers the development, financing, construction, ownership and operation of the second phase of the firm’s solar power plant. The plant will have a total capacity of 17.6MW and is expected to produce 32.5GW/yr of electricity.


India: Dalmia Bharat has commenced commercial production at its expanded cement grinding facility in Lanka, Hojai district, Assam. The expansion by subsidiary Dalmia Cement (North East) has added 2.4Mt/yr to the company’s total production capacity, which has now reached 49Mt/yr. Capacity utilisation stands at 60% on a pro-rata basis. The expansion cost US$80.4m, funded through equity, debt and internal accruals. The additional output is expected to meet rising cement demand in the northeastern region.


UK: Aggregate Industries has rebranded as Holcim UK. The company operates over 200 sites across the UK with 4000 employees. Following 20 years as a UK-based subsidiary of Holcim Group, the new direction sees the business align more closely with its Swiss-based parent company, which operates across 70 countries and employs over 60,000 people worldwide.

Holcim UK CEO Lee Sleight said “Our evolution from Aggregate Industries to Holcim UK is much more than a rebrand. It represents a commitment to leading the sector towards a more sustainable future through a commitment to innovation and collaboration.”


Egypt: Sinai Cement reported a net profit of US$60.7m in 2024, compared to a net loss of US$2.40m in 2023. Net sales rose to US$127m in 2024 from US$84.7m in 2023. Non-consolidated net profit reached US$60.7m, compared to a loss of US$2.32m in 2023.


Bosnia and Herzegovina: Heidelberg Materials Cement BiH recorded a net profit of US$28.2m in 2024, up by 37% year-on-year. Total sales rose by 25% to US$99.9m. Domestic sales revenue increased by 30% to US$62.7m, while foreign market sales rose by 36% to US$4.5m, the company said in its annual report.


India: Swachha Andhra Co. chair K Pattabhiram and Andhra Pradesh Pollution Control Board chair P Krishnaiah said cement manufacturers must use refuse-derived fuel (RDF) in kilns as per the Solid Waste Management rules issued by the Ministry of Housing and Urban Affairs in 2018. The regulation requires a minimum RDF usage of 15% to reduce coal consumption in cement production.

Pattabhiram said 7000t of waste is generated daily from 123 urban local bodies, and stressed the need for daily processing to eliminate dumping yards. He urged cement plants within 400km of municipalities to comply. Krishnaiah added that a joint technical committee would be formed to assist cement producers in implementing the rule.


Kyrgyzstan: Cement imports rose by 330% year-on-year to 38,000t in January 2025, according to the National Statistics Committee. Kazakhstan supplied 24,700t, Uzbekistan 13,100t and Iran 189t. Total cement imports in 2024 increased by 220% to 0.5Mt, while domestic production rose by 4.3% to 3.1Mt.


Vietnam: Xuan Son Group held the launch ceremony for Xuan Son Cement at the Xuan Son cement plant in Hoa Binh province on 21 February 2025. The plant spans 40 hectares, with a US$196m investment and a production capacity of 3.5Mt/yr. The plant integrates Polysius grinding technology, Flender transmission systems, Haver & Boecker automated packaging technology and electrical equipment and motors from Pfeiffer, Vacuum and ABB. Heat consumption is below 680kCal/kg of clinker, and electricity consumption is under 71kW/t of cement, according to the company. The plant uses refuse-derived fuel in the kiln, as well as waste heat recovery to reduce its reliance on fossil fuels. It aims for zero NOx and CO₂ emissions.


Poland: Cemex has signed an agreement with EDP Energia Poland to build solar installations at several of its sites, with a total capacity of over 14MW. The investment is part of its ‘Future in Action’ strategy to combat climate change.

New solar plants will be installed at Cemex's cement plants in Chełm, Rudniki, and Gdynia, as well as its ready-mix concrete plants in Mysłowice, Warsaw Annopol, Lublin, Szczecin, and Gdańsk. The concrete plant installations will begin operating in the second quarter of 2025, while the installations at the cement plants are scheduled to start generating power in the first quarter of 2026. EDP Energia Polska will install and manage the solar installations under a 15-year agreement, supplying renewable energy to Cemex facilities.


The Gambia: A recent cement shortage in the Greater Banjul Area and West Coast Region has been attributed to delays at the country’s main port, according to Omar Badjie, director of industry at the Ministry of Trade, Industry, Regional Integration and Employment. The disruption reportedly stemmed from a backlog at the Banjul port that left a key shipment from cement supplier Jah Oil waiting offshore.

“The issue wasn't production capacity,” Badjie said. “The port was congested, and Jah Oil's vessel had trouble berthing. That put pressure on the two other cement plants, Salam and Gacem, which couldn't meet the market's demand on their own.”

The government expedited a berth for Jah Oil's vessel, which docked last week with 38,000t of cement. However, supply constraints persist, with contractors reporting stalled projects and inflated prices.


Argentina: Cement production reached 0.74Mt in February 2025, up by 9% from 0.68Mt in February 2024, according to the Asociación de Fabricantes de Cemento Portland. Of this, exports contributed 8855t, from 5384t in February 2024, representing an increase of 64% year-on-year. Domestic cement consumption stood at 0.73Mt, an 8% rise from 0.68Mt in the same month of 2024. Of this, imports contributed 212t, a fall of 76% from 919t in February 2024. ​


UK: Cimpor is expanding into the UK following a change in ownership in 2024 and new capital investment. Cimpor registered Cimpor UK Limited in April 2024 with an office in Cheadle and has invested €20-25m in a terminal at the port of Bristol. It plans to expand its product range in the UK in the coming years.

Cimpor Global chief technology officer Berkan Fidan said “With the ports and terminals we own and operate, we leverage our export globally, strengthening our supply chain and continuing to explore new market opportunities.”


UK: Union officials have raised concerns over 41 job losses at Tarmac’s Dunbar cement plant in East Lothian, which represents about a third of its workforce. The plant has been described as ‘critically important to the Scottish economy,’ according to The Scotsman newspaper. Trade union GMB Scotland has called on the Scottish government to intervene, warning that the cuts would harm local communities and Scotland’s manufacturing base. The 0.7Mt/yr plant has reportedly entered talks with workers over the potential job cuts, but questioned have been raised over whether production levels can be maintained after job losses.

GMB Scotland organiser Stephen McGhee said “This may be the first step in deindustrialising the site with work, skills and taxes going elsewhere. With the widespread use of concrete, this would be another blow to Scotland’s manufacturing base and workforce.”


France: Heidelberg Materials has ordered an MVR 5000 C-4 vertical roller mill from Gebr. Pfeiffer for its Airvault plant to grind ultra-fine Portland cement. The mill will be equipped with an SLS 4500 VC classifier to produce 145t/hr of Portland cement at a fineness of 4500cm²/g. The design allows for high-efficiency grinding and lower CO₂ emissions by reducing clinker content in blended cements. The contract is managed by China-based contractor CBMI. Commissioning is expected in the first half of 2026.


India: The Tamil Nadu government will impose a mineral-bearing land tax of US$1.82/t on limestone under the Tamil Nadu Mineral Bearing Land Tax Act 2024. This tax, payable in advance on mineral dispatch, is in addition to existing royalty charges. The announcement follows Karnataka’s recent decision to levy US$0.29/t on limestone mined.

The tax will raise production costs for cement producers in the region, particularly affecting Ramco Cements, which has 52% of its clinker capacity in Tamil Nadu, and Dalmia Bharat, which has 23%. Other Indian cement producers are less affected, with UltraTech Cement only holding 4% capacity in the area, and ACC 2%. This could mean that the cost increase is passed on to consumers, raising the price of cement.


India: The National Company Law Tribunal (NCLT) has approved the demerger and transfer of Vinay Cement’s cement and mining operations to Dalmia Cement (North East), both subsidiaries of Dalmia Bharat. The order comes into effect on 31 March 2025. Dalmia Bharat will not issue shares under the arrangement. Both subsidiaries will continue operating under the company following the approval.