Global Cement Newsletter

Issue: GCW738 / 03 December 2025

Headlines


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.  

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


Saudi Arabia: Al-Jouf Cement has appointed Eisa bin Yeslam Ba-Eisa as its chair. He succeeds Ahmed bin Mohammed Al-Faleh in the position.

Yeslam Ba-Eisa holds over 25 years of professional experience in the telecommunications, industrial, and corporate governance sectors. He is currently working as the chair of GO Telecom. He has also worked as the CEO of several companies in the cement and energy sectors. He is a member of the National Committee for Cement and the Arab Union for Cement and Building Materials.

He holds a PhD in business administration from Atlanta University, Georgia, and master's and bachelor's degrees in business administration and mining engineering from King Abdulaziz University. He is also professionally accredited as a Certified Management Consultant by the Ministry of Commerce and as an Engineering Consultant by the Saudi Council of Engineers.


Finland: Tana Oy has appointed Antti Mikkonen as its Vice President, R&D.

Mikkonen previously worked as the Head of Product at Gofore Oyj. Before that, he held roles at Ponsse Oyj from 2011 to 2023, including five years as Director of Control Systems. He is a graduate in computer software engineering from Kajaani University of Applied Sciences.


Democratic Republic of Congo: Lucky Cement will expand cement production in the country through its joint venture with the Rawji Group, Nyumba Ya Akiba (NYA). The company announced that NYA will increase its capacity from 1.31Mt/yr to 2.91Mt/yr by adding a fully integrated 1.6Mt/yr line.

Following the project, Lucky Cement’s total capacity will increase to 23.2Mt/yr, including 15.3Mt/yr from Pakistan, 1.74Mt/yr from Basra, Iraq, 3.20Mt/yr from Samawah, Iraq, and 2.91Mt/yr from the DRC.


Europe: Holcim has completed the acquisitions of Thames Materials in London and of a majority stake in A&S Recycling in Hanover, and agreed to acquire a third demolition materials recycler in France. The three firms have a combined processing capacity of around 1.3Mt/yr. The acquisitions will support Holcim’s NextGen Growth 2030 target of recycling over 20Mt/yr of construction demolition materials and scale up its ECOCycle circular construction technology.

With Thames Materials, Holcim can now provide circular services across Greater London. The three A&S Recycling sites in Hanover raise Holcim’s German recycling hubs to 10, and the upcoming acquisition in Northwest France will increase Holcim’s French recycling centres to 28.


Colombia: The cement industry recorded a 6% year-on-year rise in national production to 1.25Mt in October 2025, driven by recovering construction activity and commercial demand. Domestic shipments grew by 10% to 1.18Mt. Shipments in the Bogotá area rose by 11%, while Nariño and Norte de Santander reported growth of 39% and 26%, respectively. Demand fell in Valle del Cauca and Sucre, by 2% and 0.6% respectively.


Algeria: Biskria Cement loaded 28,000t of white cement at the Port of Annaba for export to the US, according to local press. The shipment forms part of the company’s strategy to expand its international footprint, with a target of exporting 0.2Mt/yr of cement.


Kyrgyzstan: Cement production reached 3.6Mt between January and October 2025, up by 32% year-on-year or 0.89Mt, according to the National Statistical Committee. The entire increase was driven by higher output in the Chui region, which produced over half of the country’s total. Cement output in the Chui region doubled from 0.9Mt to 1.8Mt, accounting for all national growth over the period.


Austria: Alpacem Cement Austria will invest in new infrastructure at its Wietersdorf site in Carinthia to process and utilise low-CO₂ alternative raw materials in cement production. The project aims to cut process-related CO₂ emissions by 51,000t/yr. The company will construct a new plant, expand conveying and storage facilities and modernise dosing systems to raise the share of alternative raw materials to 35%. The project is supported by a €21.6m grant under Austria’s ‘Transformation of Industry’ programme.


India: Sagar Cement has ordered a MVR 5000 C-4 vertical roller mill for cement grinding at its Dachepalle plant in Andhra Pradesh. The new unit has a drive power of 3870kW, and will produce 210t/hr of ordinary Portland cement. The investment follows the installation of a mill of the same size at the site in 2018. The project is being executed in collaboration with Gebr. Pfeiffer (India) and Gebr. Pfeiffer (Germany), with Pfeiffer’s Noida-based engineering team providing full design and support.


India: Ambuja Cements has commissioned a 4Mt/yr brownfield expansion of its clinker unit at Bhatapara, Chhattisgarh. The company confirmed the new capacity is fully operational, raising its consolidated clinker capacity to 66Mt/yr. Ambuja Cements has also increased its 2028 financial year capacity target to 155Mt/yr, up from 140Mt/yr, with the additional capacity to be achieved through debottlenecking.

The company will install 13 blenders across its plants over the next 12 months to optimise product mix and raise its premium product cement share. Planned logistics infrastructure upgrades are expected to improve capacity utilisation by 3% over the next two years.


El Salvador: Cement demand rose by 22% year-on-year between January and August 2025 to 34.3 million 42.5kg bags, up from 28.1 million bags in the same period in 2024, according to data from the Central Reserve Bank (BCR). In August 2025, demand was 3.9 million bags, up from 3.5 million in August 2024. Director of the Planning Office of the Metropolitan Area of San Salvador (OPAMSS) Luis Rodríguez said “The main concrete companies are about to expand their distribution capacity.”

Holcim executive director for El Salvador and Nicaragua Manuel Arrieta said “We are seeing a 20% increase in our sales this year in volume. We have never produced as much as we did in the second half of the year and we foresee super-strong construction for the future, so we hope that next year we will be able to break a new record.”

Holcim operates two plants in Metapán and reported sales of more than 1.2Mt of cement in 2025. It has reportedly invested nearly US$80m over the past five years in expansion and sustainable technology. Cement imports also rose, with 614 million kg of hydraulic cements entering the country between January and October 2025. Guatemala was the top source at 193.2 million kg, followed by Vietnam and Japan. Total imports were valued at US$51.6m.

Rodríguez said that cement volumes, in addition to other construction materials, have increased by 60% through the port of Acajutla. Over five producers and importers now compete in El Salvador’s cement market.


New Zealand: Holcim New Zealand has confirmed it will sell its cement carrier MV Buffalo, a source of local employment, to Switzerland-based NovaAlgoma Cement Carriers (NACC) at the end of 2025.

A Holcim spokesperson said “Holcim has decided to sell the MV Buffalo and source a replacement vessel. The 27-year-old MV Buffalo is too large, inefficient and costly to run, requiring in excess of US$4.5m in repairs and maintenance over the next four years in order to remain seaworthy. The decision follows a comprehensive review of Holcim’s shipping requirements and operational costs. The review identified the need for a more modern, smaller and cost-effective vessel to maintain supply of cement to the South Island and lower North Island.”

The company began consultation to retire the MV Buffalo in February 2025, and has since confirmed future shipping will be managed by NACC. However, NACC must obtain a government exemption to operate the Panamanian-flagged NACC Vega in domestic waters.

The Maritime Union of New Zealand (MUNZ) has opposed the move and urged the government to reject NACC’s flag waiver application. Holcim has reportedly issued formal termination notices to the MV Buffalo’s 32 New Zealand-based crew, effective 28 December 2025. Union negotiations remain unresolved since October 2025 and have been referred to the Employment Relations Authority.


Southeast Asia: The ASEAN Federation of Cement Manufacturers (AFCM) has launched the 2035 AFCM Decarbonisation Roadmap, which it says is the world’s first regional decarbonisation strategy for the cement sector. The roadmap was announced during the 46th AFCM Council Meeting in Brunei Darussalam, chaired by Dr Chana Poomee and attended by cement association leaders from all eight AFCM member countries.

The roadmap sets a shared framework for systematic CO₂ reduction aligned with national climate policies and global environmental goals. Supported by the Global Cement and Concrete Association (GCCA), it is built upon four pillars: expansion of low carbon cement, transition to renewable energy across production processes and enhancing efficiency to reduce energy consumption, deployment of decarbonisation technologies such as carbon capture, utilisation and storage (CCUS), and development of new supplementary cementitious materials.

Member associations from Brunei Darussalam, Cambodia, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam said that national implementation will vary depending on local energy mix, policies, industrial maturity and material availability. The strategy could reportedly cut regional CO₂ emissions by up to 38Mt by 2035.


Pakistan: Since the closure of the Pakistan-Afghanistan border on 11 October 2025, Afghan coal imports and cement exports have been halted, raising prices and prompting northern cement producers to shift to coal imports from South Africa, Indonesia and Mozambique. The move follows rising tensions between the two countries, with the cement sector among the most affected.

A manufacturer said Afghan coal is no longer available and ruled out using Iran as an alternative route due to the lack of banking channels and the impracticality of transporting coal. It said Afghanistan accounts for about 7% of Pakistan’s cement exports. Topline Securities reported that DG Khan Cement will continue using imported coal, while some producers have begun importing RB2 grade.

Insight Research has reported that Cherat Cement, Fauji Cement and Maple Leaf Cement are among the most exposed, with Afghan exports accounting for 9.8%, 5.8% and 3.1% of their sales, respectively.


Nigeria: The cement industry is set to reach a market value of US$1.44bn by the end of 2025, following a 9.4% compound annual growth rate (CAGR) between 2020 and 2024, according to The Daily Times. The sector is projected to expand at a 7.9% CAGR between 2025 and 2029, with the market forecast to grow from US$1.33bn in 2024 to US$1.96bn by the end of 2029.

Growth is reportedly being driven by public infrastructure projects, urban housing and import substitution. Local producers have managed to maintain supplies, despite currency pressure, energy costs and logistics constraints. Firms are investing in alternative fuels, digital logistics and energy optimisation to manage volatility and support sustainability targets. However, long-term competitiveness will depend on regulatory reforms, energy stability and sustainable resource management.


Saudi Arabia: Al-Jouf Cement has signed a one-year, US$10m sales agreement with Towa Development to export cement to Syria and Palestine. The contract, effective from 30 November 2025 to 29 November 2026, reportedly represents over 14% of the producer’s total revenue based on its latest audited results. The company will supply all types of cement to Towa Development for export throughout the contract period.


China: Huaxin Building Materials Group will change its company name and logo from 4 December 2025. It said that the change reflects the company’s broader focus on building materials beyond cement.


US: Cement import capacity is continuing to rise despite a slowdown in demand and growing uncertainty over tariffs, according to a report by Argus Media. Cement supplier Ozinga initially expected  demand would bounce back after the November 2024 presidential election. CEO Marty Ozinga said “Then the Liberation Day thing happened. I think that really put a pause to a lot of projects, just enough to make it very disappointing for most of the year,” referring to the tariffs rolled out in April 2025.

Tariffs have increased costs for importers by US$5-10/t, said On Field Investment Research managing partner Yassine Touahri. Market analyst Ed Sullivan forecasts cement consumption falling by 5% in 2025 and dropping by a further 0.2% in 2026, hitting a low of 100Mt. He said longer-term growth is still possible, citing a potential market size of 140Mt by 2050 if past per capita consumption rates return.

With mortgage rates above 6% and affordability at record lows, residential construction is expected to remain weak. Sullivan said that industry utilisation is running at 76%, below the 80% that producers ‘would like to see’, and he expects imports to hit a bottom at 17Mt in 2026, despite new import capacity coming online.

"On the import side, capacity additions are not slowing down at all", even though demand for additional imports is much less certain than it was three to five years ago, LEK Consulting managing director Olivier Asset said.


Morocco: National cement demand grew by 12% year-on-year in the third quarter of 2025, supported by a strong construction sector. LafargeHolcim Maroc recorded consolidated revenue of US$255m for the quarter, also up by 12% from the third quarter of 2024, driven by higher sales volumes of cement and ready-mix concrete. Year-to-date revenue reached US$703m by the end of September 2025, reflecting a 12.5% increase compared to the same period in 2024.


Yemen: Local authorities in Hadramout have inaugurated the country’s first solar facility at Arabian Yemen Cement’s cement plant, a US$11m project aimed at reducing dependence on fossil fuels and stabilising electricity supply. The facility integrates solar energy into cement production, with a system designed to manage the high loads required by crushers, mills and kilns, enabling uninterrupted operations. Officials described the project as a breakthrough for Yemen, which has struggled with energy shortages and rising fuel prices.

See the December issue of Global Cement magazine for more information on this story.


Syria: The General Company for the Manufacturing and Marketing of Cement and Building Materials (Omran) has held talks with an investment delegation from China’s BITEC on expanding technical, commercial and investment cooperation in the cement and construction materials sector. The meeting addressed upgrading production lines, improving operational efficiency and supporting national reconstruction.

Omran director general Mahmoud Fadila outlined the cement industry’s current state, future development plans, investment opportunities and sector challenges. The BITEC delegation reportedly expressed interest in expanding its presence in Syria and offering technology and industrial support to increase output.


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.


Indonesia: Cement sales fell by 2.5% year-on-year to 51.9Mt between January and October 2025, amid a reduction in the national IKN capital city construction budget to US$889m. Cement production also saw a decline of 6%, reaching 52.9Mt. The Indonesian Cement Association (ASI) said weakening demand occurred in Kalimantan, where sales dropped by 828,356t to 3.88Mt, and Java, where sales fell by 556,468t to 27.1Mt.

Secretary general Ari Wirawan said “Domestic cement sales from January to October 2025 continue to show a negative trend, affecting nearly all regions with a 2.5% decrease compared to the same period in 2024.”

Sales in Sumatra and Nusa Tenggara rose by 2% and 3% respectively due to toll road and tourism infrastructure projects. Exports rose by over 20% to 1.11Mt, with shipments going to Bangladesh, Taiwan, Australia, Timor Leste and Sri Lanka. Production dropped by 6% to 52.9Mt, with utilisation reaching 53%.

ASI chair Lilik Unggul Raharjo said a proposed increase in the home renovation programme budget to US$2.6bn could lift annual cement consumption by 6.2Mt. He said “A 4Mt increase in demand is admittedly somewhat optimistic. Nevertheless, our fervent hope is that the increased budget for home renovations will indeed come to fruition.”


Nepal: Udayapur Cement plant has resumed operations after an eight-month closure, the longest in its recent history, according to local press. The state-owned producer shut down entirely following the Council of Ministers’ 28 May 2025 decision to privatise it, creating uncertainty that halted production. The 800t/day capacity plant, located in Triyuga Municipality–6, Jaljale, has faced frequent shutdowns due to outdated equipment and is currently in significant debt, which the administration expects to reduce through continued operation.

General manager Kovid Kafle said the plant reopened after repairs. The plant had reportedly not provided salaries to its employees during the shutdown, and had only retained 193 out of 533 staff. The producer has requested a US$1.7m loan from the government, proposing to repay it within three years with interest.


Lithuania: Scientists at Kaunas University of Technology (KTU) have developed methods to convert discarded textiles into alternative fuels and cement additives to reduce waste. Efforts focus on reducing the clinker content of cement and CO₂ output.

Dr Raimonda Kubiliute of the KTU Faculty of Chemical Technology said “The cement industry, especially clinker firing processes in rotary kilns, contributes significantly to environmental pollution. This is why researchers are actively seeking ways to reduce the amount of conventional cement in cement-based mixtures by replacing it with alternative binders or fillers.”

KTU found that polyester fibre from waste textiles, when added to concrete at 1.5%, increases compressive strength by 15-20% and improves freeze-thaw resistance. Ash from thermal treatment of textiles at 300°C in an inert atmosphere can replace up to 7.5% of ordinary Portland cement and increase strength by up to 16% under curing conditions. The findings are part of the ‘Production of Alternative Fuel from Textile Waste in Energy-Intensive Industries (Textifuel)’ project between KTU and the Lithuanian Energy Institute.

Dr Kubiliute said “This technological solution not only reduces CO₂ emissions during cement production but also provides an innovative and environmentally friendly approach to textile waste management.”


Colombia: The Colombian Navy seized 3.5t of cement during a maritime control operation in the Gulf of Urabá. The shipment, valued at US$2347, was reportedly being transported without proper documentation and aboard a vessel that did not meet maritime authority standards.

Three Colombian nationals transported the cement, and did not comply with regulations on controlled chemical substances. The Urabá Coast Guard Station inspected the unregistered, unmarked vessel, which also lacked a navigation certificate, registration or any visible identification on the hull. Authorities determined the quantity of cement aboard exceeded the legal transport limit, and the vessel was impounded. The vessel, cargo and crew were handed over to the relevant authorities.