According to a study by CBR, Ukrainian cement and concrete producers are demonstrating readiness for rapid recovery and expansion of their capacities. This is occurring amid significant uncertainty, particularly due to reduced international funding and limited resources in the Ukrainian budget. Producers and consumers of cement are prepared to invest in modernization to meet the growing demand for reconstruction materials.
This is reported by Бізнес • Медіа
Analysts note that in 2022, cement production significantly decreased to 5.4 million tons, compared to 11 million tons in 2021 due to a reduction in domestic consumption. However, in the following two years, production stabilized at levels of 7.4 and 7.97 million tons, respectively. Experts predict that after the war ends and reconstruction begins, peak cement production could reach 12 million tons, but the industry will only be able to achieve this level in the third or fourth year of recovery.
Investments in Modernization and Capacity Expansion
Producers are ready to invest in the modernization of their facilities. Despite the low likelihood of building new plants, modernizing existing kilns may take about a year. At least two plants plan to launch additional kilns, which will allow for an increase in production by 2 million tons. For example, the company “Kryvyi Rih Cement” has already received a special permit to develop the Marianske limestone deposit and has a plan to construct a kiln directly in the quarry for clinker production. Modernization of the “Kramatorsk Cement Plant – Pushka” and the Balakliia plant “Balcem” is also possible.
“Cement companies are ready for quick investments in modernization and the launch of additional kilns. They are waiting for signals to start expansion. These could be news about the allocation of funds for reconstruction and/or a rise in demand to the level of 9.5 million tons,” CBR explained.