World Cement Association (WCA) president Wei Rushan has emphasised that “significant transformations” could occur in the global cement industry.
Wei has called on industry stakeholders to embrace the economic, regulatory, and geopolitical challenges that he believes lie ahead for the industry.
“The cement industry is experiencing profound changes, with businesses managing overcapacity and upgrading, balancing sustainable development with short-term survival, and weighing social responsibility against shareholder returns,” Wei said.
“While each region faces unique challenges, our shared focus remains on driving sustainable growth, embracing technological advancements, and tackling climate change.”
The WCA recently released a white paper indicating global cement demand could decline by 2050. The Europe and North American markets are expected to see increasing prices ,while smaller markets may see prices decline in the short term.
It comes as several multinational companies have shifted their focuses to North America and divested away from smaller markets. Strict CO2 regulations and necessary capacity reductions have increased prices and reduced production in Europe. Japan and China’s markets have witnessed consolidation and restructuring.
India’s market is seeing an increase in cement production with local Indian companies are strengthening their position as multinationals exit it.
Wei said the WCA would continue to work with producers and stakeholders to explore ways to modernise and upgrade outdated plants.
“To remain both profitable and environmentally responsible, the cement industry must aim to reduce capacity by 50 per cent, from 4.7 billion tons to 2.3 billion tons within the next decade. This requires focusing on modern, sustainable production units,” Wei said.
He also noted carbon reduction and carbon neutrality as another key challenge. Although progress has been made through Carbon Capture and Storage (CCS) technologies, Mr. Wei acknowledged the high costs and energy intensity of these solutions.
“Cement plays a crucial role in building sustainable infrastructure,” Wei said.
“By accelerating innovation, adopting low-carbon technologies, and fostering global collaboration, we can ensure cement remains an environmentally responsible material.”
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