Business news from Ukraine

Cement consumption in Ukraine increased by 17% last year – Ukrcement Association

17 April , 2024  

Cement consumption in the domestic Ukrainian market in 2023, which increased by 17% compared to 2022 and reached 5.4 million tons, will continue to grow moderately, according to Pavlo Kachur, chairman of the Ukrcement Association.

“Even in a state of war, we have undergone some adaptation. If 2022 was a shock year, and our cement consumption dropped to 4.6 million tons of cement per year against 10.5 million tons the previous year, in 2023 we adapted to the situation and reached 5.4 million tons. I think this is a good growth for wartime. I don’t think there will be such a jump in 2024, but we will probably reach 6 million tons of domestic cement consumption,” Kachur said at the roundtable discussion “Building Materials. Preparedness for Market Needs for Recovery” at Interfax-Ukraine on Tuesday.

In addition, at the end of 2023, exports amounted to 1.24 million tons of cement, while imports amounted to 23 thousand tons of special cements that are not produced in the country.

According to Kachur, the potential for cement production by enterprises in Ukraine today is 13.6 million tons of cement, while current financial and human resources provide for consumption of 12.5 million tons. Despite the ability of Ukrainian companies to fully cover the market’s needs, it makes sense to plan to expand production, he said.

“We are also preparing for other options. Processes may overlap, and one of them may be the negotiation process with the European Union. If it is successful, European infrastructure projects may also take place during the recovery period. This may lead to increased cement consumption, and we must be prepared for this,” said the head of Ukrcement.

The expert noted that production could be increased in three stages: the construction of new clinker kilns and capacity expansion, the restoration of plants in Balakliya and Kramatorsk, and the construction of new cement plants. The two companies are already considering the construction of two new clinker kilns, which will increase their cement production capacity by 2.4 million tons, but the construction will be launched after they reach the consumption level of 10.5 million tons of cement.

Kachur also emphasized the importance of localizing production in the recovery prospects and protecting the Ukrainian market.

“I support the thesis of maximum localization. This is the only way for Ukraine’s economy to develop. But it is also important to protect our market. We realize that the countries that are donors of funds for the recovery can also supply construction materials. However, I believe that we should have a separate policy for countries that are not on the side of supporting Ukraine today, during the war. We need to think about how to treat them if, after the war, they want to participate in the reconstruction with their materials. I think it would be unfair if they get the opportunity to make money on the Ukrainian market,” he said.

The Ukrcement Association was established in January 2004 through the reorganization of the Ukrainian Concern of Cement Industry Enterprises and Organizations Ukrcement.