INTERVIEW: Turkey's Medcem aims for global growth with strategic cement investments

Medcem, Turkey's leading cement producer and exporter, recently announced a GBP35 million redevelopment to set up a new cement import facility in Liverpool, North-West England. Platts, part of S&P Global Commodity Insights, spoke to Enver Celikbas, business development and investment director at Medcem, about the new investment and the company's future strategy to expand in Europe and elsewhere.

The interview has been loosely edited for length and clarity.

Liverpool investment

This will mark Medcem's third investment in the UK, following the terminal developments in Sheerness and Glasgow - all executed in collaboration with Peel Ports. The Liverpool terminal is strategically located and will serve as a critical hub that complements our existing network, enabling us to efficiently reach nearly 70% of the cement consumption across the UK.

Liverpool is a brownfield investment with a total project cost of approximately GBP35 million. The facility will feature four vertical silos with a combined storage capacity of 45,000 mt, situated on a 5.75-acre site. The draft at the port is 10.5 meters (with an option to increase), which is ideal for accommodating larger ships and optimizing logistics. Excavation is already underway, and we are targeting full operations by mid-2026.

In the first phase, the company will focus on importing and storing cement and fly ash, but the site has been designed with scalability in mind. The size of the land allows for future expansion in a second phase, which includes plans for a blending station and the import of various supplementary cementitious materials (SCMs). Our primary goal is to provide low-carbon cementitious products to concrete producers in the UK, reinforcing our commitment to sustainability.

Owning and operating own terminals also gives the company clear advantages: lower freight costs, tighter control over the supply chain, and the ability to pass cost efficiencies on to customers. This also supports economies of scale and strengthens our position as a dependable long-term supplier.

UK market potential

Our UK investments are highly strategic. The closure of domestic power plants has significantly reduced the availability of fly ash, just as demand for low-carbon and green cement is accelerating. At the same time, no new cement production facilities are being built, and upgrading existing infrastructure is prohibitively expensive. This imbalance presents a clear opportunity, and we are positioning ourselves to fill that supply gap.

All our terminal agreements in the UK are secured for a minimum of 20 years, underscoring our long-term commitment to the market. Our objective is to establish Medcem-branded products as a recognized quality standard in the UK. We're already seeing positive acknowledgment from customers regarding our product consistency and performance.

The UK market is similar to the US in that quality is non-negotiable. The company exports nearly 3 million mt annually to the US, and they have never faced concerns about product quality. This reinforces our confidence as we expand further into the UK.

Future projects and global expansion

We are no longer content being seen solely as a Turkish cement exporter. Our vision is to become a mid-sized global cement player and our strategy reflects that ambition.

Currently, the company's focus is on Europe and the US, with several initiatives already in motion. In the US, we are in advanced negotiations for both an import terminal and a grinding mill in two different states. Additionally, we are reviving our previously mothballed grinding unit in Florida, which is set to be operational by March 2026.

We are also exploring partnerships and acquisitions, including the potential purchase of assets in Turkey or abroad to strengthen our production and distribution capabilities. Our integrated cement plant in Turkey will remain the key exporter, supplying our terminals, particularly in the initial phases.

In Turkey, the company is undertaking serious steps on the production side to align with global decarbonization goals. These include investments in solar energy, waste heat recovery, alternative fuels, AI-based efficiency tools, and digital twin technology. As Turkey's largest exporter of cement and SCMs, our access to fly ash and slag fits perfectly into our green strategy.

Tariffs and market volatility

We're currently well-shielded from short-term market fluctuations due to our contractual structure - over 95% of our sales are under annual contracts. Although this meant we couldn't take full advantage of recent spot price hikes, the stability it offers is critical and essential when managing production and logistics for nearly 8 million mt of annual exports.

However, the company is closely monitoring not only the US economy but also global developments, ranging from tariff policies to construction activity and broader macroeconomic factors, that could impact their business. While the US remains a major market, the company also has investments in Belgium and Italy and sales to other European countries, reflecting the broader international footprint. Of course, no company can be fully hedged against all global risks, but our approach is to stay agile, take precautionary measures in advance and ensure that we have fall-back plans in place to respond swiftly and effectively as conditions evolve.