Meeting The Needs Of The World

The Turkish cement sector, which includes 77 cement plants (56 integrated and 21 grinding facilities) spread across the country, provides direct employment for 17 500 people. With an annual production capacity of 119 million t, the sector ranks as the world’s fifth-largest and Europe’s leading producer. Simultaneously, it stands as the second-largest exporter globally, servicing over 100 markets in its field.

A year in review

The sector faced challenges in 2022 due to the adverse effects of the pandemic and the Ukraine-Russia conflict. With the contraction in the construction industry, both domestic and international sales experienced a decline in tonnage in 2022.

The sector continues to produce below its installed capacity. Approximately 25.1% of the cement produced in 2022 was exported. Overall exports decreased by 12%, totalling 27.2 million t. This export comprised 18.7 million t of cement and 8.5 million t of clinker.

After experiencing a 7% contraction in 2022, the sector entered 2023 with an increase in domestic sales and a decrease in exports due to the base effect of January 2022.

2023 onwards

In the January – June period of 2023, TÜRKÇIMENTO members’ cement production increased by 7.7% compared to the same period of the previous year, reaching 36.7 million t. Domestic sales also increased by 14.4%, totalling 28 million t. With reconstruction after earthquakes and the transformation of risky housing, an increase in domestic sales is expected in the upcoming period.

Looking at sector exports, the declining trend continued in 2023. In the January – July period of 2023, there was a 32% reduction in tonnage compared to the same period, resulting in the export of 10 million t of cement and 2 million t of clinker, with a total of 12 million t.

With the European Union’s Carbon Border Adjustment Mechanism (CBAM) regulation scheduled for implementation in 2026, a decrease in exports to Europe is anticipated. However, as carbon emissions decrease due to investments in the sector, it is expected that exports to Europe will return to previous levels.

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Read the article online at: https://www.worldcement.com/special-reports/04102023/meeting-the-needs-of-the-world/