Ukrainian cement and concrete producers are poised to increase their capacity to meet reconstruction demands.

According to CBR, even amidst high uncertainty with reduced international financing and severely limited Ukrainian budget resources, cement producers and consumers are ready to quickly restore and expand their production capacity, willing to invest to meet the reconstruction demand.

In 2022, cement production dropped significantly due to decreased domestic consumption – from 11 million tons in 2021 to 5.4 million tons. However, production stabilized over the next two years, reaching 7.4 and 7.97 million tons, respectively. It is anticipated that after the war ends and reconstruction begins, peak cement production may reach a maximum of 12 million tons, but the industry is expected to achieve this level in the third or fourth year of reconstruction.

The industry is prepared to invest in modernization. While the construction of new plants seems unlikely, modernizing kilns will take about a year. At least two plants will initiate additional kilns, contributing an additional two million tons. Kryvyi Rih Cement has received a special permit to develop the Maryansk limestone deposit and plans to build a kiln within the quarry for clinker production. Modernization of the Kramatorsk Cement Plant-Pushka and the Baltem Company’s plant in Balakliya is also a possibility.