UK’s Mineral Products Association urges government support for cement sector

Urgent government action is necessary to support the competitiveness of British cement manufacturers, the UK-based Mineral Products Association trade group said May 21.

The MPA, which represents the UK's aggregates, asphalt, cement and concrete industries, highlighted how British cement producers were struggling with high energy and carbon costs that are leaving them unable to compete with overseas manufacturers.

"We really need the government to address the underlying reasons so many heavy domestic industries are facing such existential challenges," Chris Leese, executive chair of the MPA, said in a statement. "UK industrial energy prices have been uncompetitive for many years, and we have been outpaced by the EU on key policy areas such as the CBAM and carbon capture, leaving domestic markets vulnerable to higher-carbon imports."

The MPA said the domestic cement sector is excluded from the UK government's Energy Intensive Industries Compensation Scheme, despite being one of the most energy-intensive manufacturing sectors.

This exclusion has caused British cement makers to struggle against rising cement imports into the UK.

The trade association has called for a carbon border adjustment mechanism, as well as other policy measures.

"British cement production is struggling to compete against rapidly increasing imports, causing a severe risk of carbon leakage and putting high-quality industrial jobs at risk in communities that have relied on them for generations," said Leese.

UK cement industry leaders raised similar concerns in November.

Platts, part of S&P Global Energy, last assessed CEMDEX Turkey at $55/metric ton FOB on May 21.