INTERVIEW: TITAN Cement sees structural ACM shortages reshaping trade

TITAN Cement Group is expanding its access to alternative cementitious materials to reduce clinker use, support its decarbonization targets, and develop a new revenue stream.

In this interview with Platts, part of S&P Global Energy, Jean Philippe Bénard, Chief Executive of Cementitious Business & Energy, discusses the group's joint ventures and projects, the prospect of structural shortages of alternative cementitious materials in Europe and the US, the role of global trade and logistics, and how regulation and customer demand are shaping the market for lower-carbon cement.

The interview has been edited for length and clarity.

Platts: How do TITAN's joint ventures and projects in alternative cementitious materials fit into the group's Forward 2029 strategy?

Jean Philippe Bénard: Securing and using alternative cementitious materials to reduce our clinker ratio is a key pillar of our net-zero ambition. Carbon capture will be part of the solution, but we also need to lower the clinker ratio by using a range of ACMs.

We have established a dedicated team to secure sources globally. Europe is increasingly short on materials such as ground granulated blast-furnace slag and fly ash. With demand rising and supply declining, we need to look beyond our immediate markets.

In Greece, we already have a pozzolan joint venture with nearly 100 million mt of reserves. A fly ash project in Serbia will soon begin exporting, and our joint venture with Jaycee in India is in the final stages of operations and investment. In the longer term, that project could export nearly 1 million mt of fly ash from India to our markets. We also have proprietary technology to improve the quality of landfilled fly ash, as well as several other projects in the pipeline.

As we said at our investor day last year, we want ACM trading to become a fourth business line alongside cement, aggregates, and concrete. By 2029, we aim for this activity to be an additional revenue stream, contributing up to 10% of turnover. We intend to sell to third parties, including our own customers, and trade with other cement players.

We have already started trading several thousand metric tons of pozzolan from Greece across the Mediterranean basin. We expect that business to continue growing.

Platts: As producers increase clinker substitution, do you expect Europe and the US to face structural shortages of high-quality ACMs? How is TITAN securing long-term supply without making logistics prohibitively expensive?

Jean Philippe Bénard: The market is gaining momentum. By the end of the decade, Europe alone could require about 20 million metric tons of ACMs, with a similar requirement in the US. There is clearly a structural shortage in both markets, so we must secure sources elsewhere through acquisitions or joint ventures.

We are also developing an end-to-end supply chain model that positions us between ACM producers and end users, leveraging our trading expertise to reach customers. Logistics and reliable delivery are critical. Our grinding capacity and import terminals in the US and Europe will support this approach and help us build a leading position by 2030.

GBFS is one of the industry's most established and important ACMs. Historically, it was not readily available in several countries where TITAN operates. As we develop this business line, we intend to add more slag to our portfolio. We already use slag in some markets, though not yet at the same scale as some competitors, and we are working to close that gap.

Platts: Which alternative cementitious materials have the greatest potential to scale over the next decade?

Jean Philippe Bénard: I do not believe a single ACM will meet the industry's future needs. Regional markets will continue to rely on the materials available to them, so no single product will dominate by 2030 or even 2040. GBFS, fly ash, calcined clay, and natural pozzolans will all play roles, alongside emerging materials.

GBFS supply will not be sufficient to meet global demand, so the industry must continue exploring alternatives. Calcined clay is particularly promising. We have announced our Meca Clay initiative and a calcined clay project in Virginia to address rising cement demand and the shortage of local ACMs. That project is progressing, has secured a clay reserve, and has received a US federal government subsidy.

Platts: Could ACMs become a globally traded commodity, or will the market remain primarily local and regional?

Jean Philippe Bénard: Shortages in some regions will inevitably increase international trade. I cannot say whether ACMs will develop into a fully fledged commodity market, but a significant share of supply will need to be shipped from source regions to markets where the materials are scarce.

TITAN already moves cement, clinker, and other powdered materials, and we have established logistics partners. That experience is a competitive advantage. We also plan to invest around Eur500 million to secure ACM supply and adapt our infrastructure to future demand, including through our terminal network.

Platts: Where will TITAN's competitive advantage come from as more producers compete for the same ACM supply?

Jean Philippe Bénard: It will come from a combination of access, technical expertise, logistics, and customer relationships. We have extensive experience using ACMs in Greece. We began with fly ash and, as coal-fired power generation declined in Europe, transitioned to other materials such as pozzolans. We have achieved a strong clinker ratio and can direct customers to proven applications in major infrastructure projects.

We cannot reach net zero if we continue producing only CEM I cement. We will need to produce increasing volumes of blended cement. ACMs will also enable us to offer customers innovative, cost-effective products that support their decarbonization goals, particularly where procurement tenders set limits on embodied carbon.

Platts: How is CBAM influencing TITAN's production, procurement and pricing decisions?

Jean Philippe Bénard: We have known for years that the Carbon Border Adjustment Mechanism was coming, and we began adapting our strategy well in advance. That means developing products with lower embodied carbon and higher ACM content.

The challenge after CBAM is to remain competitive, including in blended cement markets. We need to design very low-clinker cements, potentially reducing clinker content to around 30% while increasing the share of other cementitious materials. Lower-carbon cement is already a reality in Europe and can be price-competitive while delivering the same or better performance.

Platts: Is customer demand developing quickly enough, and what needs to change for highly substituted cements to become mainstream?

Jean Philippe Bénard: Customer interest is gradually increasing, and we have set 2029 as the horizon for full-scale ACM trading. The transition will require more than product development. Public procurement is critical to driving demand for lower-carbon cement, and producers need to clearly explain these products through their marketing and sales approach.

Standards and building codes must also evolve. They need to protect customers while allowing new types of cement to enter the market. Across TITAN's countries, we have a common roadmap and a group-wide target for reducing the clinker ratio. Greece provides a strong foundation, but the same direction applies throughout the business.