Global Cement Newsletter

Issue: GCW773 / 19 August 2026

Headlines


UltraTech Cement agreed to buy a 26% stake in a solar power company this week. As many readers may know this is a common occurrence in the Indian cement sector due to local electricity legislation. Read on to find out more and why there may have been more such  deals in 2026.

The Aditya Birla Group subsidiary agreed on 12 August 2026 to acquire a 26% stake in Solaris Horizon Energy for around US$3m. The latter company generates and transmits renewable energy. It was established in late 2025 and is a special purpose vehicle (SPV) intended to supply 91MWp DC or 65MW AC solar power in Chhattisgarh on a captive basis from a solar plant located in Mungeli. UltraTech Cement said that it made the transaction to meet its “...green energy needs, optimising energy cost and comply with regulatory requirements for captive power consumption under electricity laws.”

Other recent and similar acquisitions by UltraTech Cement include the purchase of 26% stakes in AMPIN C&I Power Forty Four in Odisha and Sunsure Solarpark Seven in Uttar Pradesh in March 2026. Elsewhere, Dalmia Bharat agreed to buy a 26% stake (on a fully-diluted basis) for US$1.8m in Oyster Green Hybrid Five in April 2026. This deal was to source 21.6MW (wind) and 14MWp (solar) for its plant at Kadapa in Andhra Pradesh. JK Lakshmi Cement agreed to buy at least a 26% stake for US$2.1m in STLC RE 1 in August 2026. The latter company is setting up a 29MW AC or 42MWp DC solar plant and a 28MWh battery energy storage system (BESS) to supply the cement producer’s Sirohi plant in Rajasthan. The addition of energy storage may be significant here as industrial users start to make renewable sources work 24-hours per day. In June 2026 it agreed to buy 26% stakes in DynoSpark Private and Elevate Solar Energy to supply its Udaipur and Durg cement plants respectively. And the list goes on…

Often Global Cement reports on cement companies entering into power purchase agreements (PPA) with renewable generators. In India the so-called 26% rule dates back to local legislation on electricity from the early 2000s. Under these laws to qualify as a captive power consumer a company needs to own at least 26% of a power project and use at least 51% of the electricity generated. The company then benefits from this by not having to pay cross-subsidy surcharges and additional surcharges. Hence the interest in SPVs. The earlier approach to this was for cement companies to buy 26% (or larger) stakes in captive thermal power plants or waste heat recovery (WHR) plants. They then started to switch to renewables from the late 2010s as the cost fell and sustainability targets grew. Further change came in 2026 when the government modernised the rules to include allowing the corporate group share to be 26% rather than on an individual plant basis.

India added 26GW of solar capacity and 3GW of wind capacity in the first half of 2026, according to JMK Research. This was nearly 70% of the total capacity added in 2025 as a whole, itself a strong year for renewables. Data from the Ministry of New and Renewable Energy placed the country’s cumulative renewable energy installed capacity at about 288GW. Anecdotally, as the examples above and others show, there also appears to have been a surge in cement companies in India buying 26% shares in renewable energy companies so far in 2026. As UltraTech Cement’s chair Kumar Mangalam Birla revealed at his company’s annual general meeting this week, in the 2026 financial year his company “...commissioned 371MW of renewable power and 63 MW of WHR systems. Green energy now accounts for 35.8% of [the] company’s total power mix.”

One driver has been the higher fuel costs arising from the US war with Iran. This has created some mixed financial results for Indian cement companies during the first quarter of 2026. As local press revealed this week, UltraTech Cement and Nuvoco Vistas reported growth in profits. Yet, Ambuja Cements, Shree Cement, Dalmia Bharat, JK Lakshmi Cement and Birla Corporation reported falling profits despite growing revenues.

These conditions look set to continue as the financial year progresses. Alongside this, expect to see more investment by cement companies in renewables. 26% looks set to remain the magic number for India-based cement producers under current energy supply conditions.


US: Amrize has appointed Tracy Crowther as the plant manager of its Ste. Genevieve cement plant in Missouri.

Crowther previously worked as the plant manager at Heidelberg Materials North America’s Mitchell cement plant in Indiana from 2020 to 2023. Before this he was the plant manager at Lehigh Hanson’s Logansport cement plant in Indiana from 2015. Earlier in his career he worked for Martin Marietta in the mid 2010s and for TXI from 2000 to 2014. Crowther holds an undergraduate degree in chemical engineering from the Colorado School of Mines and a master’s of business administration (MBA) qualification from the TCU Neeley School of Business.


Austria: RHI Magnesita has appointed Gustavo Franco as its CEO with effect from 1 November 2026. He will succeed Stefan Borgas, who will step down after 10 years in the role.

Franco joined Magnesita, then a separate entity, in 2001 and has worked in technical, commercial and leadership roles in South America, North America and Europe. He started as a Technical Marketing Engineer in Brazil and eventually became Chief Sales Officer for the company in 2019. He has been a member of the Executive Management Team since 2019 and has worked as Chief Customer Officer since 2023. Franco holds an undergraduate degree in mechanical engineering from the Centro Federal de Educação Tecnológica de Minas Gerais.


Canada: Three years after Heidelberg Materials’ pilot carbon capture project at its Edmonton cement plant, it has reportedly put plans on hold. Heidelberg Materials told local press that it is ‘not moving forward’ with the project ‘at this time.’ Carbon credits in Canada are currently traded at around US$32/t, which is reportedly too low to justify the costs associated with the project.

In 2023, Heidelberg Materials signed a partnership with the government to support the US$979m project which would capture 1Mt/yr by the end of 2026. The captured CO₂ would be transported by pipeline to the Open Access Wabamun Carbon Hub in Parkland County, expected to be completed by 2027.

Jeff Seig, corporate communications director of the company, said “Heidelberg Materials regularly reviews project requirements, external support needs and resource allocations to ensure responsible stewardship of company resources and shareholder capital.”


Nigeria: The Federal Competition and Consumer Protection Commission (FCCC) said that it has uncovered possible manipulation of cement prices in the market following a three-month investigation. The FCCPC said that the investigation followed complaints over the high cost of cement despite the country’s substantial limestone deposits and domestic production capacity. It said that the level of excess capacity had not produced the downward pressure on prices expected in a competitive market. The next stage will reportedly determine whether prices are justified by legitimate costs and market conditions or whether there is evidence of any anti-competitive practices.


China: Data from the National Bureau of Statistics shows that from January to July 2026, China’s cement production was 860Mt, representing a year-on-year decrease of nearly 9%. Among the 31 provinces in China, only five – Beijing, Guizhou, Yunnan, Heilongjiang and Hainan – achieved year-on-year growth in cement production during the first half of the year, according to Digital Cement Network. Most producers faced losses compared to the first half of 2025 due to a decline in both the volume and price of cement.

Infrastructure and real estate projects are reportedly facing funding shortages, and overall cement demand is weak, as well as extreme weather events like high temperatures and heavy rainfall affecting construction progress. China exported 4.1Mt of cement in the first half of 2026, a year-on-year increase of 54%, and 9.4Mt of clinker. The main export destinations were Bangladesh, Ghana and the Philippines.


Russia: Cement output increased in Russia by 3% in July 2026, reportedly the first month of the year that has recorded a positive trend. This is reportedly attributed to the gradual stabilisation of demand, due to a drop in imports.


Vietnam: INSEE Vietnam has commissioned the expansion of its Can Tho cement plant in an inauguration ceremony on 31 July 2026. The project includes the commissioning of four new silos with a total capacity of 1000t, in addition to the four existing silos with a capacity of 600t, bringing the total capacity of the plant to 1600t. According to local press, the expansion will enable INSEE to respond more quickly and flexibly to market demands and ensure a stable supply for its customers throughout the Mekong Delta region.


Saudi Arabia: Northern Region Cement has ordered a raw mill optimisation package, including a SpectraFlow Airslide Analyser and RMP Control Software, for its cement plant near Turaif.

The supply will optimise Northern Region Cement’s white cement line, which has a capacity of 0.85Mt/yr. SpectraFlow Analytics has now partnered with two major white cement producers in the region: Northern Region Cement and Riyadh Cement.


US: Cement deliveries in the US and Puerto Rico in March 2026, including imports, reached 8.5Mt, up by 5% from March 2025. From January to March 2026, shipments were 21.3Mt, up by 6.5% from the previous year. The leading destination for shipments was Texas, followed by California, Florida, Arizona and Georgia. These states received 45% of shipments in March 2026.

Clinker production, excluding Puerto Rico, totalled 5.07Mt in March 2026, representing an increase of 1% from March 2025. Production from January to March 2026 was 13.7Mt, an increase of 4% year-on-year. The leading clinker-producing states were Texas, California, Florida, Missouri and Alabama.

Imports of cement and clinker in March 2026 reached 2.16Mt, an increase of 24% year-on-year. Imports from January to March 2026 were 5.24Mt, up by 2% from March 2025.


Vietnam: Vietnam exported 3.18Mt of cement and clinker worth US$120m in July 2026, up by 5% in volume year-on-year, according to the latest figures from the government’s National Statistics Office. In the first seven months of 2026, Vietnam exported 22.5Mt of cement and clinker, up by 14% year-on-year.


Pakistan: Gharibwal Cement has halted clinker production after its kiln induced draught (ID) fan was damaged during operation, the company disclosed to the Pakistan Stock Exchange. The company said it has initiated repair and that a replacement fan and parts have been ordered, with shipment expected in September 2026. Normal operations will be resumed as soon as possible. The plant has a capacity has of 7500t/day of cement.


Saudi Arabia: Qassim Cement has signed an agreement with the Saudi Industrial Development Fund (SIDF) to secure US$105m of funding for the construction of a fourth production line at its plant in the Buraydah region. The funding will help replace certain production lines and boost its capacity to 10,000t/day, according to a stock exchange filing.

The financing is for a nine-year period, including a two-year grace period, with a repayment schedule over 7 years.

In 2025, Qassim Cement awarded a US$298m contract to China-based Sinoma to set up the fourth cement production line at its Buraydah plant. Under this, Sinoma will provide complete EPC services for the production line.


UAE: Holcim UAE and carbon storage developer 44.01 have launched what they call the UAE’s first continuous, live-condition carbon capture and underground mineralisation project for the cement sector in Fujairah. Following its initial commissioning, the facility has been operational since mid-July 2026, capturing between 4-4.5t/day of CO2 directly from the flue gas stream of Holcim’s cement plant. The captured carbon is transported to 44.01’s nearby storage site and injected underground into Fujairah’s rock formations. The injected CO2 reacts with the surrounding rock, turning into solid carbonate minerals.

Over the next six months, project partners will gather real-time performance data under industrial conditions to evaluate the feasibility of deploying larger-scale mineralisation infrastructure across the UAE and global markets.


Jamaica: Caribbean Cement could resume regional exports as early as September 2026, according to The Jamaica Observer, which said that the company is targeting the Cayman Islands and The Bahamas, as increased production restores surplus capacity. The company restarted exports to regional markets in January 2026, but later suspended planned shipments as supplies dwindled.

“With our new enhanced capacity, we are willing; we have the capacity not only to serve the entire local market, but also to export some surpluses,” said managing director Jorge Martinez during the company’s annual general meeting.

The potential regional push follows US$29m of investment across 44 capital projects during 2025. Of that amount, US$17m went towards the expansion of the kiln and US$4m towards replacing the stack. Other projects included a new tyre shredder and additional machinery. However, Martinez placed a clear limit on any expansion, saying “We are being responsible about attending and handling the local market as our first priority.”

Caribbean Cement faced challenges meeting local demand in April and May 2026. Martinez said that the company had requested supplementary cement in March 2026. However, the additional supply, including cement sourced through Cemex’s operations in the Bahamas, took weeks to arrive, during which time Caribbean Cement had halted its planned exports and redirected available cement to the domestic market.

“What we are doing is significantly increasing our safety inventories of finished products, higher warehousing capacity and getting supplementary cement if needed,” Martinez said.


Nepal: The government has begun preparations to resume operations at the state-owned Udayapur Cement Industry, starting by renewing its licence to extract limestone. The licence had been cancelled in September 2024 during the previous government’s tenure. It was also announced that the Ministry of Finance will provide US$49,000 in outstanding debt that Udayapur Cement Industry owes to the Department of Mines and Geology. It is now preparing to appoint a general manager and operate the plant at its full capacity of 800t/day.


Tanzania: The government has explained the cause of recent cement shortages in the market, attributing the situation to temporary supply disruptions. These disruptions reportedly result from reduced production at cement plants, increased demand driven by construction and infrastructure projects and higher costs across the production and distribution chain, contributing to price increases in some parts of the country, according to Permanent Secretary at the Ministry of Industry and Trade, Ambassador Wazir Salum. Salum said that some cement plants had undergone maintenance, temporarily reducing the production of cement and clinker. Maintenance at the affected plants had now been completed and production of both clinker and cement had resumed, with availability expected to improve as output and distribution increase.

“Maintenance at the major plants that affected the production of clinker and cement has already been completed. The government is therefore monitoring production to ensure that the increase in production is also reflected in the availability of the product on the market,” he said.


India: JSW Cement’s revenues increased by 22% year-on-year to US$3.66bn in the first quarter of the 2027 financial year. Earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 8% to US$577m. Nonetheless, the producer swung to a net profit of US$310m, from a loss of US$262m in the first quarter of the 2026 financial year. The former loss had been due to an exceptional charge of US$2.83bn, according to the producer.


Brazil: Votorantim Cimentos raised its sales by 16% year-on-year to US$2.8bn in the first half of 2026, with cement volumes up by 5%, to 17.9Mt. Group adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 19%, to US$513m.

During the first half of 2026, Votorantim Cimentos secured a new US$350m committed credit facility, due in 2031, to replace its US$300m facility due in 2027. The company has invested US$598m of a US$964m investment plan for 2024 – 2028. Upcoming expenditure under the plan includes US$50.1m towards a planned 50% expansion of the Xambióa cement plant in Tocantins to 1.5Mt/yr, due in July 2028.

Group CEO Osvaldo Ayres said “Our results in the second quarter of 2026 highlight the strength of our international platform, supported by geographic and product diversification, as well as our financial robustness and disciplined capital allocation. We posted positive operational performance and continued to execute the company’s strategy with discipline, with progress in structural competitiveness, efficiency, capacity expansion and decarbonisation.”

Chief financial officer Antonio Pelicano said “Despite increased macroeconomic volatility, we maintained our financial discipline, strong operating cash flow generation and healthy capital structure. The expansion of our revolving credit line and the maintenance of our investment grade rating confirm our company’s financial strength and ability to execute our long-term strategy.”


India: Pilani Investment and Industries Corporation sold a 0.85% stake in UltraTech Cement for US$304m on 13 August 2026. The company had held a 1.5% stake in the producer as of June 2026. The Business Standard newspaper has reported that domestic institutional investors bought the shares, led by HDFC Mutual Fund, which bought US$157m-worth (0.4%), and ICICI Prudential Mutual Fund, which bought US$41.9m-worth (0.1%).


India: Indigenous rights group Jaintia National Council has given the Meghalaya government 10 days to ‘protect landowners' and farmers' rights’ against violation by Shree Cement's planned US$187m East Jaintia Hills cement plant and quarry at Lum Syrman. The requested protection is to consist of an intervention and ‘transparent verification’ of land records. Authorities have allegedly called off public hearings on the plans since May 2026 due to the volume of popular opposition.


Nigeria: Market research firm Global Cement Group has forecast that the Nigerian cement market will grow by 13% year-on-year to US$2.86bn in 2026, then at a compound annual growth rate (CAGR) of 10%, to US$4.26bn, up to 2030. The Nigerian Tribune newspaper has reported infrastructure and urban housing construction as anticipated demand drivers during the period.

BUA Cement, Dangote Cement and HMB Nigeria reported combined sales of US$2.35bn in the first half of 2026, amidst currency pressures, increased energy prices and logistical disruptions.


India: AVG Logistics has won a five-year contract worth US$1.89m/yr, extendable by three years, to deploy 30 electric heavy-goods vehicles for a cement producer's inbound and outbound transport of raw materials and cement. Capital Market News has reported that the vehicles will operate along ‘industrial corridors’ in North East India, carrying loads of 38 – 41t of materials. Additionally, AVG Logistics will build and operate electric vehicle charging stations to support the fleet.


UK: Breedon Group is pressing for further action to ensure what it calls a ‘level playing field’ for UK cement producers, as it continues its campaign for greater government support for domestic production. The construction materials group welcomed Prime Minister Andy Burnham’s recent comments on supporting British industry and Chancellor John Healey’s call to ‘buy British by design’ when it comes to government projects.

Breedon Group launched its Back British Cement campaign in January 2026, calling for urgent action to secure the future of domestic cement production. It supplies around 2Mt/yr of cement annually from its UK and Irish operations. However, UK cement production is now at its lowest level since 1950, with domestic producers facing ‘structurally-uncompetitive’ industrial electricity costs and ‘uneven’ carbon regulations compared with foreign importers, which now account for more than a third of UK cement sales.

Breedon is calling for further clarification and progress in five areas. These include strengthening the UK carbon border adjustment mechanism (CBAM) ahead of its implementation in January 2027 to ensure that imported cement faces carbon costs that are equivalent to the amount paid by UK producers. It also called for continued alignment between UK and EU carbon pricing to reduce trade friction.

The company is also calling for cement to be included in industrial electricity compensation schemes to address high power costs, for cement and concrete to be recognised as strategic materials in government procurement and for faster support for carbon capture, fuel switching and other low-carbon technologies to help domestic cement producers decarbonise while remaining competitive.


India: Grasim Industries, the flagship company of the Aditya Birla group, raised its profit by 51.1% year-on-year to US$22.5m for the three months to 30 June 2026, the first quarter of the 2027 Fiscal Year. Revenue for the quarter grew by 21.4% year-on-year to US$5.1bn, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 7.7% year-on-year to US$814m, helped by stronger operating performance across businesses.

The building materials portfolio remained a key contributor in the first quarter. Revenue from the segment, which includes cement sales, paints and B2B e-commerce, rose by 21% year-on-year to US$3.0bn, while EBITDA increased by 17% year-on-year to US$524m.

Total cement sales volumes for the quarter rose by 12.2% year-on-year to 41.3Mt, while ready-mix concrete volumes increased by 18.0% year-on-year to 4.6Mm3. The group’s grey cement capacity stood at 205.5Mt/yr at the end of June 2026 following an 8.7Mt/yr expansion. The company is targeting a total capacity of more than 240Mt/yr by March 2028.


India: UltraTech Cement has entered into an energy supply agreement and a share subscription and shareholders agreement with Solaris Horizon Energy, which is engaged in the generation and transmission of renewable energy. Specifically, it has agreed to acquire a 26% equity stake in the solar power producer for an investment of up to US$2.9m.

Solaris Horizon Energy has been set up as a special purpose vehicle to supply 91MW DC or 65MW AC of solar power to UltraTech Cement’s plants in Chhattisgarh on a captive basis.

In an exchange filing the company said "The acquisition is for the purposes of meeting the company’s green energy needs, optimising energy costs and complying with regulatory requirements for captive power consumption under electricity laws.”


Colombia: Cementos Argos reported consolidated revenues of US$415m for the second quarter of 2026, representing 2.4% growth compared to the same period the previous year. With this result, the company accumulated US$808m in revenue during the first half of 2026. Consolidated shipments for the second quarter of 2026 reached 2.3Mt of cement, while Concretos Argos sold 637,000m3 of material shipped.

Across the business, cement volumes in Colombia grew by 5.5%, reaching nearly 1.3Mt, with revenues of US$231m. In Central America, cement volumes rose by 20.8% to reach 0.48Mt, generating US$71m in revenues. However, Cementos Argos' EBITDA in this market fell by 18.8% year-on-year to US$14m, partly due to scheduled maintenance shutdowns in Honduras. The Caribbean region market recorded revenues of US$74m and an EBITDA of US$16m. The company's US platform, Argos Materials, structured its management team and successfully completed its third trial shipment to Tampa, Florida, confirming the logistical reliability of supplying the US market.


India: Grasim Industries, the flagship company of the Aditya Birla group, raised its profit by 51.1% year-on-year to US$22.5m for the three months to 30 June 2026, the first quarter of the 2027 Fiscal Year. Revenue for the quarter grew by 21.4% year-on-year to US$5.1bn, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 7.7% year-on-year to US$814m, helped by stronger operating performance across businesses.

The building materials portfolio remained a key contributor in the first quarter. Revenue from the segment, which includes cement sales, paints and B2B e-commerce, rose by 21% year-on-year to US$3.0bn, while EBITDA increased by 17% year-on-year to US$524m.

Total cement sales volumes for the quarter rose by 12.2% year-on-year to 41.3Mt, while ready-mix concrete volumes increased by 18.0% year-on-year to 4.6Mm3. The group’s grey cement capacity stood at 205.5Mt/yr at the end of June 2026 following an 8.7Mt/yr expansion. The company is targeting a total capacity of more than 240Mt/yr by March 2028.


Morocco: Ciments du Maroc’s non-consolidated, unaudited revenues were US$219m for the first half of 2026, a 4.8% increase compared to the US$209m recorded in the first six months of 2025. For the second quarter, the figure rose by 18.1% from US$102m to US$121m. This enabled the cement manufacturer to offset the 8% decline recorded in the first quarter of 2026.

On a consolidated basis, cumulative revenue in the first half of 2026 came to US$290m, compared to US$237m a year earlier. The reported growth rate was 22.4%, representing an increase of US$53m. However, this figure incorporates a change of scope due to Ciments du Maroc’s acquisition of Asment de Témara.