**London**: Wei Rushan, president of the World Cement Association, emphasises the need for innovation, sustainability, and collaboration to address economic and regulatory challenges. The WCA’s White Paper highlights significant shifts in multinationals’ strategies and developments in various regions, notably India’s cement production growth.
In a recent address to members, the president of the World Cement Association (WCA), Wei Rushan, underscored the transformative changes currently influencing the global cement industry. Speaking to the cement community, Rushan highlighted the pressing need for innovation, sustainability, and collaboration among stakeholders in light of various economic, regulatory, and geopolitical challenges that lie ahead.
The WCA’s latest White Paper outlines several key regional developments affecting the industry. Notably, multinational companies are recalibrating their strategies, opting to wind down their cement operations in favour of a strategic focus on North America. This strategic pivot comes as cement production in Europe continues to face a downturn, primarily attributed to stringent CO2 regulations and the necessity for capacity reductions. These regulatory pressures have consequently resulted in rising cement prices across the continent. Simultaneously, China and Japan are witnessing significant consolidation and restructuring efforts aimed at managing overcapacity within their respective markets.
Contrasting this trend, India is experiencing a robust expansion in cement production, with output exceeding 200 million tonnes. Indian firms are enhancing their domestic market presence, while several multinational corporations are choosing to exit this burgeoning market, which poses substantial growth potential.
The trends noted are shaping a landscape where regional leaders hold increasing sway, particularly in contexts outside of Europe and North America, where European multinationals still maintain a dominant position. Notably, Chinese cement producers and independent enterprises are aggressively expanding their footprint in regions such as Africa and Southeast Asia, thereby solidifying their competitive advantage.
The geographical breakdown of cement demand reveals that North America, Northeast Asia, and Oceania account for 13% of global demand. While demand growth is anticipated in North America and Oceania due to rising populations, declines are projected for Northeast Asia and Western Europe, which are experiencing population shrinkage. Looking ahead to 2024, these developed markets are expected to maintain a demand level just below 0.5 billion tonnes, a trend that is anticipated to persist until 2050.
In his discourse, Rushan specifically pointed to carbon reduction and the pursuit of carbon neutrality as paramount challenges for the sector. Although advancements have been made through Carbon Capture and Storage (CCS) technologies, he acknowledged the substantial costs and the energy-intensive nature of implementing such solutions.
“Cement plays a crucial role in building sustainable infrastructure,” Rushan stated. He advocated for the acceleration of innovation, the adoption of low-carbon technologies, and the promotion of global collaboration, asserting that these actions are vital to ensuring that cement remains a viable and environmentally responsible material in future infrastructure projects.
Source: Noah Wire Services
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