Global Cement Newsletter

Issue: GCW747 / 18 February 2026

Headlines


The European Union (EU) Emissions Trading Scheme (ETS) carbon price took a tumble this week following comments suggesting a rethink by German Chancellor Friedrich Merz. Minds have been focused by the start of the Cross Border Adjustment Mechanism (CBAM) in January 2026, high energy prices and poor growth. The challenge is now on in the lead up to the next proposals to update the EU ETS, expected by July 2026.

As the abrupt change in the carbon price shows, words have power. Especially from prominent politicians. So, when former President Barack Obama told a podcast host this week that aliens were real, the world took notice. Obama subsequently clarified, with some exasperation, that he had responded to a light-hearted question in kind with his belief. Similarly, when Merz said last week that the EU’s carbon market should be revised or delayed, the markets took note. The ETS carbon price fell by 12% from €79/t on 11 February 2026 to €69/t on 16 February 2026. The share prices of large Europe-based cement producers such as Holcim and Heidelberg Materials also fell.

Merz’s speech to the European Industry Summit in Antwerp on 11 February 2026 called for the EU to become competitive again. He noted that the economy had grown by 8% in China in recent years, by 2% in the US and only 1% in the EU. His remedy is to reduce bureaucracy, promote a common European legal framework to make trans-national business easier, improve the common energy market to reduce energy prices, cut AI regulations in and make ‘better’ merger rules. However, all of these well-signposted measures paled in comparison to comments Merz made on a panel at the event about the possibility of changing the ETS. His words were also similar to those of Italy’s Prime Minister Giorgia Meloni, who told reporters last week that the EU needed to review the ETS.

Meanwhile, across the channel in the UK, the government launched its second consultation on its CBAM. The British version is set to start in 2027 and exactly the same kind of arguments and counter-arguments are popping up as in the run up to the EU CBAM. The UK’s Mineral Products Association (MPA) has been lobbying to make sure that the scheme doesn’t hurt the local cement and concrete sectors. Cue familiar issues such as time to test the new system, clarity on the default values importers will pay when emissions can’t be verified, protection for local manufacturers… and so on.

Carbon taxes like the EU ETS are political instruments. They require certainty that they will persist for years or decades before companies will make investments in response to them. So, if the heads of some of the largest economies within the EU start to publicly question the viability of the ETS, why should anyone take it seriously, much less open up the cheque book to build fancy untested technologies such as carbon capture plants!? Naturally, European Commission President Ursula von der Leyen defended the scheme at the Antwerp event. She argued that decarbonisation has been possible in tandem with economic growth over the longer term. It is likely to have been a tough crowd, given that she was making this point at a conference about industrial competitiveness in Europe.

The most likely amendment to the ETS being touted in the press may be an extension of the free allocation system beyond the mid-2030s. Or, in other words, a brake could be imposed on how fast the cost of the carbon tax mounts up for protected industries such as cement. This would also effectively restrict more expensive forms of sustainability such as carbon capture to projects funded by governments, unless there was a step-change in the technology, CO2 transport infrastructure and so on. All the talk by industry in the run-up to the CBAM was about stopping an external leak of the system and exposing local industry to ‘unfair’ imports. At the moment it looks like the actual leak will come from within. At which point, accusations about carbon taxes merely being a form of economic protectionism seem more credible.


Germany: Matthias Mersmann, the Chief Technology Officer of KHD, has died. The Germany-based equipment supplier announced the news on 12 February 2026.

Mersmann started the role of Chief Technology Officer at KHD Humboldt Wedag in 2020. Prior to this he worked for KHD from 1994 to 2008 in a variety of positions starting as a process engineer and eventually becoming Vice President Technology and R&D. In 2008 he founded the cement process optimisation consultancy aixergee with Martin Weng. He also advised Loesche in the 2010s as a member of the executive committee responsible for technology and innovation. Mersmann held a master's degree in mechanical and process engineering from RWTH Aachen University. He is survived by his wife Geli and two daughters, Lisa and Lilly.

Robert McCaffrey, Editorial Director of Global Cement Magazine, said “We are very sad and shocked to hear this. Matthias was a brilliant guy, great company, very sympathetic and, of course, technically, first class. He was also a very eloquent and engaging speaker at several of our conferences. He still had a lot to give in life and he’ll be widely missed.”

Paul Brown, Commercial Director of Global Cement Magazine, added “Matthias was far more than a cement expert, which he certainly also was, but he was also a charismatic gentleman and excellent company. I also considered him a good friend who will be sorely missed."


Indonesia: Solusi Bangun Indonesia has appointed Anwar Bakti as Head of Operational Performance Excellence.

Bakti has worked for the subsidiary of Semen Indonesia since 2019 and then for Lafarge Indonesia before that from 2008. He started as a Process Engineer for Lafarge in Malaysia and later moved to Technical Manager roles in Indonesia. He was the Plant General Manager of the Cilacap cement plant from 2024 to early 2026. Bakti holds a master of business administration (MBA) qualification from the University of the People and an undergraduate degree in chemistry from the Institut Teknologi Bandung.


Egypt: Lafarge Egypt has appointed Ramy Mostafa as Head of Operational Technology.

Mostafa has worked for the subsidiary of Holcim since 2004. He started in maintenance engineering and later became Raw Kilns & Kilns Maintenance Manager in 2016. Previously he worked for the El Bardy Paper Mills. Mostafa holds a master of business administration (MBA) qualification from the Arab Academy for Science, Technology and Maritime Transport and an undergraduate degree in electrical engineering from Ain Shams University.


Indonesia: Fuller Technologies has announced the supply of a new 8000t/day Cross-Bar Cooler 16×39 (partial cooler) for Indocement’s P11 plant in Jakarta. The scope includes the Cross-Bar Cooler, air blast system, hydraulic power unit and related fans and motors. The order follows an order for a Fuller HOTDISC Reactor supplied for the same line in 2021.


India: Loesche has been awarded a contract by The Ramco Cements for the delivery of a new clinker slag grinding plant for the Kalvatala cement plant in Andhra Pradesh. The plant will use a Loesche vertical roller mill with a capacity of 260t/hr (OPC) and will include a dynamic classifier type LDC, Pronamic® grinding parts, a rotary feeder and further equipment. Delivery is planned for the second half of 2026 and commissioning will start in December 2026.

The additional grinding plant will increase the company’s overall production capacity and the company intends to produce various types of products from the plant.


Libya: The undersecretary of the Ministry of Industry and Minerals, Mustafa Al-Samou, held a meeting with China-based Goodwill Ceramic (Wankang) regarding plans to build a cement plant with a capacity of 2Mt/yr, according to the Libya Herald. Discussions covered regulatory and technical procedures to advance the project, alignment with national industrial development plans and adherence to environmental standards.


Afghanistan: The Information and Culture Department of Herat announced the official commencement of the Herat Cement project, which will reportedly enter production within the next 14 months, according to Atlas Press. The plant will have a production capacity of 3000t/day and will meet approximately 60% of domestic demand.


India: Renaatus Procon will invest US$27.5m in the first phase of a new fibre cement board manufacturing plant in Andhra Pradesh. The facility is expected to be commissioned in 2026, and will have a production capacity of 60,000t/yr. It will serve the construction sector in southern Indian states and export markets.

The producer also plans to invest US$33m over the next 2-3 years to scale up production of its Renacon autoclaved aerated concete (ACC) blocks.


France: Vicat Group has released its financial results for 2025, showing what its CEO called a ‘solid’ performance in 2025, despite a ‘complex international environment.’ The group’s sales reached €3.8bn in 2025, a rise of 3.3% on a like-for-like basis. Growth accelerated gradually throughout the year, with a rise of 8.1% on a like-for-like basis in the fourth quarter of 2025. Group earnings before interest, tax, depreciation and amortisation (EBITDA) reached €771m in 2025, up by 3.7%. Its net income amounted to €307m, up 11.9%.

Following a first-half decline, cement volumes rebounded in the second half, leading to full-year growth of 3.0%. This dynamic reflects a gradual stabilisation in France, a sustained recovery in Switzerland and a strong performance in the Mediterranean region, offsetting the decline in volumes in the US. Industrial performance improved in the cement business, notably driven by an increase in the use of alternative fuels, which rose by 1.4 points compared to 2024, reaching 37.4%.

Cement prices remained resilient overall in the group’s key regions: they rose in most emerging countries, with the exception of India and Senegal, and held steady in developed markets. Concrete volumes rose by 0.9% in 2025, supported by strong growth in Brazil and Türkiye. However, this was partially offset by a decline in the US, particularly in California, and by a moderate downturn in France.

Vicat’s Chair and CEO Guy Sidos said, “In a complex international environment characterised by headwinds and adverse exchange rate effects, the group delivered solid results in 2025, following a record year in 2024. This performance underscores the resilience of our business model, which is built on a balanced presence across developed and emerging markets, as well as a local-to-local approach. It also demonstrates the importance of the long-term vision of our corporate strategy, and the unwavering commitment of our employees across 12 countries.”


India: Approval has been granted for three major railway projects in a cabinet meeting chaired by Prime Minister Narendra Modi. Approximately US$2bn will be spent on three multi-tracking projects, which the government says will strengthen the railway network. The routes are from Kasara to Manmad, from Delhi to Ambala, and from Ballari to Hospete. A third and fourth rail line will be laid on all these routes, which will help reduce traffic congestion.

This government says that the projects will speed up freight transport, with a capacity increase of 96Mt/yr. This includes key building materials like cement, coal, steel, grains and fertilisers. The government claims that using rail transport will reduce oil imports and help to reduce CO2 emissions, in line with the country's climate goals.


Syria: Officials at the Damascus Chamber of Commerce met a Jordanian economic delegation on 16 February 2026 to discuss potential investment in Syria’s cement industry. The talks brought together board members and a delegation led by Mohammad Ali Bdeir, chair of Jordan’s General Mining Company.

Discussions focused on investment opportunities in Syria, particularly in cement manufacturing, as well as the legal framework governing foreign investment and ways to strengthen economic ties between the two countries. Participants said the meeting aimed to revive trade cooperation after years of limited economic engagement, pointing to what they described as positive signs for expanded bilateral cooperation.

The meeting forms part of broader efforts by business groups to promote Arab economic cooperation and investment into Syrian industry, including those linked to reconstruction and industrial activity.


Qatar: Qatar National Cement Company (QNCC) made a net profit of US$261m in 2025, a fall of 37% year-on-year compared to US$416m in 2024. Earnings per share were US$0.39, a fall from US$0.62.


Kazakhstan: Kazakhstan's manufacturing sector experienced year-on-year growth of 6.4% in 2025, according to Central Asia Economic Outlook. The production of building materials rose by 9.7%, supported by higher output in cement, ready-mix concrete, building solutions, lime and prefabricated concrete structures, linked to ongoing infrastructure and housing projects across the country.


Peru: Cementos Pacasmayo recorded sales of US$632m in 2025, up by 6% year-on-year. The producer’s earnings before interest, taxation, depreciation and amortisation (EBITDA) – excluding transaction-related expenses for its acquisition by Holcim – rose by 11% year-on-year, to US$47.4m. Combined sales volumes of cement and concrete rose by 8%, mainly due to increased infrastructure activity and bagged cement demand, according to the producer.


France: Vicat has won a Major Industrial Decarbonisation Projects grant for its Vicat Advanced Industrial Alliance carbon capture project from the French government. The project aims to capture and store 1.2Mt/yr of CO₂ from the company’s Montalieu-Vercieu cement plant, the largest in the country. DPA-AFX News has reported that the project previously won EU Innovation Fund backing in November 2025, with a final investment decision due in 2027.


Russia: MMK subsidiary Magnitogorsk Cement and Refractory Plant has completed reconstruction of slag drying drum furnaces at its plant in Chelyabinsk Oblast. The furnaces feature recirculating burners to prevent the formation of NOx and reduce the energy consumption of slag drying by 10%, according to the company. AK&M News has reported that the producer is now installing an automated emissions control system at the plant.

Plant director Yuri Kochubeev said "It is fundamentally important for us to ensure the plant's efficiency increases, while strictly adhering to high environmental standards."


India: Member of Parliament for Shillong Ricky Syngkon called for the suspension of the environmental clearance procedure for Shree Cement’s planned Daistong cement plant in Meghalaya on 15 February 2026. The planned 0.95Mt/yr integrated plant also includes 40,000t/yr additional cement grinding capacity, a 15MW captive power plant and a 7MW waste heat recovery plant.

Syngkon called on the Ministry for Environment, Forests and Climate Change to suspend the clearance procedure for the Daistong plant, pending an independent review into its impacts and alleged ‘procedural irregularities.’ He suggested risks to air quality, groundwater, rivers, agriculture and forest habitats. Press Trust of India News has reported that local residents alleged ‘serious deficiencies’ in a statutory public hearing, including obstruction from attending. Syngkon noted the ‘gravity of public concern.’


Switzerland: Holcim held She Leads, a week-long programme of virtual and in-person meetings, earlier in February 2026. 25 female employees of Holcim attended the programme, which offered instruction in executive presence, public speaking, branding and business strategy, as well as networking and targeted development opportunities.

LafargeHolcim Maroc Fes cement plant process manager Kawtar Tansaoui said “Being part of this community of women from around the world reminded me that leadership is not only about driving results. It’s also about courage, vulnerability and lifting each other up.”

While the first cohort of She Leads attendees all work in technical roles, subsequent iterations of the programme will serve women in commercial, logistics and leadership positions. Holcim plans for a further 50 women to attend the She Leads programme in 2026.


Mexico: Authorities have regained control of the Cruz Azul cement plant in Tula de Allende, Hidalgo, after a five-year internal dispute. The facility has been out of operation since 2022 due to a power outage.

The Attorney General's Office of the State of Mexico arrested 33 people during the operation on 12 February 2026, transferring them to Hidalgo state authorities, according to local news outlet Proceso. These people were initially reported as missing. 31 were charged with ‘disobedience and resistance’, while two others were found with 0.38-calibre rifles and charged with weapons offences. The plant had been under the control of a dissident group led by Federico Sarabia Pozo, former president of Cruz Azul, following a leadership split after Guillermo ‘Billy’ Álvarez Cuevas stepped down in 2020.

Víctor Manuel Velázquez Rangel, president of the board of Cooperativa La Cruz Azul since 2020, said in a video posted to social media “During the early hours of this Thursday 12 February 2026, a court order to recover the Cruz Azul cement plant in the state of Hidalgo, municipality of Tula de Allende, was successfully completed. The plant is now under our possession, after being held hostage for more than five years. I make a heartfelt appeal for social peace to all those who were misinformed, deceived, or forced to participate directly or indirectly in the takeover of this industrial unit. I want to tell you that jobs will be recovered, and those truly responsible are already being brought to justice."


Kyrgyzstan: A new cement plant will be built in Tash-Kumyr, following the signing of an investment agreement between the Cabinet of Ministers and Yug Evro Cement on 13 February 2026. The event was attended by the governor of Jalal-Abad region, Tilek Tekebayev, alongside the company’s management. The project involves the construction and commissioning of the cement facility, an investment valued at approximately US$50m. According to local press, the plant is expected to create around 250 new jobs once operational.


US: Total shipments of Portland and blended cement, including imports, reached an estimated 9.83Mt in September 2025, marking a 10% year-on-year increase, according to data from the USGS. However, cumulative shipments for the year to September 2025 were down by 2% from 2024, at 76.4Mt. Texas was the top destination for shipments by volume, while the leading producing states in September were Texas, Missouri, California, Florida, and Michigan, which together accounted for 38% of total US production.

Clinker production, excluding Puerto Rico, stood at 6.28Mt in September 2025, representing a 6% increase year-on-year, but dropped by 5% year-on-year to 50.1Mt for the January-September period. The top clinker-producing states were Missouri, Texas, California, Florida, and Alabama. Cement and clinker imports in September 2025 reached 2.34Mt, up by 9% from the same period in 2024. For the year to September 2025, imports totalled 19.2Mt, a 2% decline year-on-year.


Bangladesh: LafargeHolcim has introduced Holcim Coastal Guard, a new cement product designed to resist salinity and sulphate exposure in structures built on coastal soil or near groundwater. Mohammad Mahfuzul Hoque, commercial and logistics director of LafargeHolcim, unveiled the cement at a launch event. “Holcim Coastal Guard is one of our most innovative products for customers in Bangladesh’s coastal areas,” he said. “We believe Holcim Coastal Guard will help customers build homes that remain resilient against harsh environmental challenges.”

The cement is formulated to reduce damage from sulphate and chloride-rich soils and groundwater, and is also suited for use against chemical attack in water and effluent treatment facilities. Holcim Coastal Guard was developed with input from the Holcim Group Innovation Centre in Lyon, France, and incorporates Smart Blend Technology.


UK: The Mineral Products Association (MPA) has raised renewed concerns over the UK’s proposed Carbon Border Adjustment Mechanism (CBAM), which will see importers of cement and other hard-to-abate materials pay an emissions tax from 1 January 2027. The association has questioned the work being done to prepare for the rollout of the policy and the efficacy once implemented. The UK government launched its second public consultation on the mechanism on 10 February 2026.

Diana Casey, executive director for energy and climate change, cement and lime at the MPA, said that the consultation was a welcome step but noted that significant issues remain unresolved. “With less than a year to get this right, it’s essential we iron out any issues now, so the mechanism genuinely protects domestic producers and ensures fair competition,” she said.

“But with the CBAM rate not scheduled to be tested until the fourth quarter of 2026, we are still a long way from knowing whether the system will work in practice. Delayed testing risks locking in a system that isn’t fit for purpose and removes the chance to course correct. We also still don’t have clarity on the default values importers will use for emissions reporting, in the event that actual verified emissions can’t be provided. Without robust, transparent defaults, there’s a real risk of under reported emissions and an uneven playing field for UK manufacturers,” she added.


China: Carbon dioxide (CO₂) emissions in China declined by 1% in the final quarter of 2025, bringing the annual total down by an estimated 0.3%, according to Carbon Brief. This marks nearly two consecutive years of ‘flat or falling’ emissions since March 2024. Emissions from fossil fuels reportedly increased by an estimated 0.1%, but this was offset by a 7% decline in emissions from cement and other building materials.


Paraguay: Cement consumption continues to rise, with annual demand now reaching 38 million bags, according to Gerardo Guerrero Agusti, president of the National Cement Industry (INC). Total cement capacity across all producers is between 40-42 million bags per year. INC reported sales of over 1 million bags of cement in January 2026, reportedly driven by the continued expansion of the construction sector, according to local press. Guerrero said that the company ended 2025 with 11.4 million bags of cement sold, positioning it to hold just over 30% of national market share.

In 2025, INC produced 576,000t of cement, an increase of 43,000t over 2024 and nearly 200,000t more than previous years. The company’s installed capacity currently allows for the production and delivery of 12 to 13 million bags annually. For 2026, INC has set a target to produce 575,000t of clinker and 600,000t of cement, or about 13 million bags over the course of the year. INC plans to upgrade its cement mill separator, which is expected to increase output by approximately 1.5 million bags, or the equivalent of an extra month of production.


Kyrgyzstan: Cement production in the Chui region doubled to 2Mt in 2025, according to data from the National Statistical Committee. The share of cement plants in the region rose to 52%, up from 36% in 2024. The Ministry of Justice’s electronic registry indicates that four registered legal entities in Chui region are officially listed as cement producers.


UK: Heidelberg Materials UK has introduced the Volvo L120 Electric wheel loader at its Nuneaton Packed Products site, marking the model’s first deployment in the country. The company said that the move is part of its broader decarbonisation strategy and follows investments in electric forklifts and vans. The L120 Electric has replaced a diesel-powered loader at the facility’s main bagging line, where it is used to transport sand and aggregates. Supplied by Volvo Construction Equipment with support from SMT GB, the deployment includes on-site charger installation and operator training to ensure efficiency and productivity.

“The L120 Electric is performing very well,” said Marian Garfield, sustainability director at Heidelberg Materials UK. “As well as being emission-free, it is eight times quieter than the diesel alternative and provides operatives with increased responsiveness and power. The battery run time has also been good, easily handling a normal 7.5-hour shift on one charge and with around 30% remaining.”