UK cement production has reached its lowest level since 1950, raising concerns about the future of the government’s housing plans, according to the Mineral Products Association (MPA). Cement, a crucial component of concrete and mortar, is essential for the construction industry.
The MPA indicated that the decline in production is largely due to rising energy costs, regulatory challenges, and increasing labor expenses. In response, the Department for Business and Trade acknowledged the difficulties faced by the cement sector and stated that its Industrial Strategy aims to provide greater support for energy-intensive industries, including cement manufacturers.
The government has announced plans to construct 1.5 million new homes in England by 2029 to address the housing crisis and stimulate economic growth. Additionally, a separate initiative proposed by Chancellor Rachel Reeves includes an investment of £725 billion over the next decade for infrastructure maintenance and new developments. Despite these efforts, cement production in the UK was reported at only 7.3 million tonnes in 2024, marking a significant decrease from levels seen in 1990. This reduction is comparable to production volumes during World War II, when rationing was in effect.
MPA executive director Dr. Diana Casey expressed concern that this decline could hinder government objectives for housing, infrastructure, and clean energy projects. She highlighted the substantial cement requirements for major projects, such as the Sizewell C nuclear power plant, which could need approximately 750,000 tonnes of cement, while a new hospital might require nearly 8,000 tonnes.
The MPA also pointed to a rise in cement imports, which have nearly tripled over the last 16 years, and attributed the decline in domestic production to high operational costs and changes to carbon taxation. Dr. Casey emphasized the need for government support to help domestic producers compete with imports, as rising electricity prices disproportionately impact the industry.
The MPA noted that around 40% of the UK’s cement is produced in the Peak District, with the rest distributed nationwide. There are concerns that increasing imports may jeopardize local jobs in the industry, particularly amidst a backdrop of stalled construction projects and escalating building costs.
Source: https://www.bbc.com/news/articles/clyryzpx7g5o?at_medium=RSS&at_campaign=rss