The cement industry is on the brink of a major financial and structural upheaval as rising carbon costs threaten to reshape global production.
Emir Adiguzel, Founder and Director of the World Cement Association, told a conference in Athens, carbon costs are no longer just an operational expense but a fundamental selling factor that will push cement prices higher.
Adiguzel highlighted overcapacity as one of the industry’s biggest challenges, particularly in Europe, where carbon pricing pressures could force plant closures.
In the US, despite a net production deficit, tariffs on cement imports from Canada, Mexico, and Europe will not create shortages but could drive up prices due to logistical constraints.
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He also pointed to carbon capture as a major factor reshaping the industry, with larger multinationals poised to dominate while smaller and mid-sized companies struggle to keep up. The need for substantial investment in decarbonisation could see many smaller producers disappear as the industry consolidates.
The European Union has proposed a €100 billion industrial decarbonisation bank to help businesses adapt, but Adiguzel questioned how the funding would be allocated and whether smaller companies would receive a fair share.
With carbon costs and regulatory pressures mounting, the cement industry is at a critical turning point, facing rising prices, industry consolidation, and an uncertain future for smaller players.
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