Concrete

World Cement Association Calls for Industry Action

The cement industry is responsible for 8 per cent of global CO2 emissions

Published

1 year ago

February 18, 2025

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The cement industry is responsible for 8 per cent of global CO2 emissions—a staggering figure that demands urgent action, particularly as 2024 marked the first year the planet surpassed the 1.5°C global warming limit. Recognising this critical juncture, the World Cement Association (WCA) has released a landmark White Paper, “Long-Term Forecast for Cement and Clinker Demand”, which projects a sharp decline in long-term cement and clinker demand. By 2050, annual clinker production is expected to fall below 1 Gt from its current level of 2.4 Gt, with far-reaching implications for global carbon emissions and the viability of carbon capture projects.

WCA CEO Ian Riley underscores the complexity of this challenge:
“Carbon capture remains a vital tool for tackling emissions in hard-to-abate sectors like cement. However, flawed demand assumptions and the fragmented nature of cement production globally could undermine the feasibility of such projects. Industry stakeholders must rethink their strategies and embrace innovative, sustainable practices to achieve meaningful emissions reductions.”

Key Findings from the WCA White Paper
The WCA White Paper provides a comprehensive roadmap for the industry’s decarbonisation journey, highlighting the following critical insights:
1. Declining Cement and Clinker Demand: Global cement demand is expected to drop to approximately 3 billion tonnes annually by 2050, while clinker demand could decline even more steeply, reaching just 1.5 billion tonnes annually.
2. Implications for Carbon Capture and Storage (CCS): With reduced clinker production, the need for CCS is expected to decline, necessitating a shift in investment and policy priorities.
3. Alternative Materials and Clinker-Free Technologies: These innovations hold transformative potential for reshaping demand patterns and cutting emissions.
4. Supply Chain Optimisation: Enhancing logistics and reducing waste are key strategies for adapting to evolving market dynamics.

A Path to Lower Emissions
Clinker production, the largest source of CO2 emissions in cement manufacturing, generates one-third of emissions from fuel combustion and two-thirds from limestone decomposition. According to our white paper, transitioning to lower-carbon fuels could reduce specific fuel emissions per tonne of clinker by nearly 70% by 2050. Overall CO2 emissions from cement production are forecast to decline from 2.4 Gt in 2024 to less than 1 Gt by 2050, even before factoring in carbon capture technologies.

Ian Riley emphasised: “This white paper provides actionable insights to help the cement industry accelerate its decarbonisation journey. By prioritising innovation and collaboration, the industry can achieve substantial emissions reductions and align with global climate goals.”

Related Topics:Cement Industry CO2 emissions global warming limit.WCA World Cement Association

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Concrete

Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins

HDFC Securities warns monsoon slowdown and higher fuel costs

Published

9 hours ago

July 17, 2026

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HDFC Securities has said the cement industry is unlikely to register a sequential increase in prices in Q2 FY27 as monsoon-related demand moderation coincides with rising fuel and packaging costs that will squeeze margins. The brokerage observed that price gains remained modest, with increases of two to three per cent quarter-on-quarter across regions, and noted subdued offtake in May with improvement in June as a delayed monsoon supported construction activity. The brokerage added that modest pricing gains so far have been insufficient to offset the input cost escalation.

The report stated that input cost pressures intensified in Q1 FY27 owing to the West Asia conflict, which pushed up coal and pet coke prices and is expected to keep fuel costs elevated, with a likely peak in Q2 FY27. It assessed that total variable costs, including packing, could rise by around Rs 150 per t quarter-on-quarter and that lower offtake and seasonal operating deleverage could further raise operating expenditure by about Rs 50 per t quarter-on-quarter.

Overall, cement prices were estimated to remain flat in Q2 FY27 as monsoon-led demand weakness offsets limited upside in realisation, and rising fuel costs alongside seasonal deleverage were expected to compress industry margins by over Rs 100 per t quarter-on-quarter to below Rs 880 per t. The brokerage indicated that the combined impact of energy inflation and higher packing expenditure would be the principal drivers of margin contraction in the near term. HDFC Securities projected a recovery in margins in H2 FY27 should the West Asia turmoil subside and energy and packing costs cool off.

The brokerage expressed optimism on long-term demand fundamentals and said improving realisation together with an anticipated cost cool-off should support a margin rebound from H2 FY27 onward, underpinning favourable industry prospects over the medium term. Its outlook rests on monsoon normalisation and a decline in imported fuel prices in the second half of the fiscal year.

Concrete

Dalmia Bharat Begins Rs 31 Bn Green Cement Unit in Kadapa

New Andhra Pradesh plant to add 9.6 MTPA cement capacity by FY28

Published

1 day ago

July 16, 2026

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Dalmia Bharat Limited recently laid the foundation stone for its second manufacturing unit at Kadapa in Andhra Pradesh. The company will invest Rs 31 billion in developing the next-generation integrated cement manufacturing facility.

The foundation-laying ceremony was attended by Nara Lokesh, Andhra Pradesh Minister for Information Technology, Electronics and Communications, Real-Time Governance and Human Resources Development, along with Puneet Dalmia, Managing Director and Chief Executive Officer, Dalmia Bharat, senior government officials and company representatives.

Scheduled to be commissioned by the third quarter of FY28, the Kadapa unit will become Dalmia Bharat’s largest integrated manufacturing facility in southern India. It will have a clinker production capacity of 6.1 million tonnes per annum and a cement manufacturing capacity of 9.6 million tonnes per annum.

The facility is designed to produce what the company describes as one of the world’s greenest cements. It is also expected to generate approximately 1,000 direct and indirect employment opportunities while supporting local MSMEs, transporters, contractors and service providers.

Lokesh said the investment reflected Dalmia Bharat’s confidence in Andhra Pradesh and aligned with the state’s objective of promoting sustainable industrialisation, job creation and technology-led economic growth.

Puneet Dalmia said the project represented the company’s long-term vision of developing low-carbon cement manufacturing assets. He added that the facility would establish new benchmarks in operational efficiency and sustainability while supporting India’s infrastructure and environmental goals.

Dalmia Bharat will also expand its regional community development programmes in education, healthcare, skill development and welfare through its DIKSHa and Gram Parivartan initiatives.

The company currently has an installed cement manufacturing capacity of 54.7 million tonnes across 19 manufacturing units in 12 states. It is also the first cement company globally to commit to the RE100, EP100 and EV100 initiatives.

Concrete

Nuvoco Inaugurates Limla Cement Plant in Surat

Acquisition boosts Western India cement capacity

Published

2 days ago

July 15, 2026

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Nuvoco Vistas Corporation Limited inaugurated the Limla Cement Plant in Surat, Gujarat, marking a key milestone in its acquisition and revival of Vadraj Cement Limited.

The company completed the acquisition of Vadraj, which had been undergoing a corporate insolvency resolution process, by discharging a consideration of Rs 18 billion (bn) in June 2025. Vadraj’s asset base includes a clinker unit at Kutch and a grinding unit at Limla, along with high quality captive limestone reserves and a captive jetty at Kutch that enhance logistics efficiency.

Since taking over the assets, Nuvoco has undertaken revival, refurbishment and expansion across both sites, culminating in the opening of the Limla facility. The grinding unit at Limla achieved project completion ahead of schedule with the commissioning of two million tonnes per annum (mn t per annum) grinding capacity, further expanding the company’s scale and market reach.

Upon full operationalisation of the Vadraj assets, nearly 40 per cent of Nuvoco’s total cement capacity will be accounted for by plants in the North and West regions, supporting improved access to high growth markets. The plant is expected to support a phased volume ramp up in Gujarat and to serve adjoining markets in western Maharashtra while releasing northern capacities for other markets.

It will produce a complete portfolio of cement products including Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement, and will offer the Duraguard range including the premium Duraguard Microfibre. The transaction is set to create synergies with Nuvoco’s existing manufacturing facilities at Nimbol and Chittorgarh, strengthening logistics optimisation and market access across key regions.

Nuvoco reported total income of Rs 113.62 billion (bn) in FY 2025-26 and stated it is on track to consolidate total cement capacity to 35 million tonnes per annum (mn t per annum) by FY2028. The company operates across cement, ready-mix concrete and modern building materials segments and highlighted a pan-India ready-mix presence alongside contributions to major infrastructure projects. Corporate communications contact details were provided by the company.