Cement market of Uzbekistan

Per capita cement consumption in Uzbekistan is expected to reach approximately 700 kg per year and then stabilize at approximately 400 kg. To meet the growing demand, a number of new facilities are already under construction in the country, and new claims for their construction are being submitted.
Given the cyclical nature of the cement industry development (periods of rapid growth of the product consumption will inevitably be followed by periods of decline, now we should be thinking about the risks of overproduction and a critical drop in profitability in 5-7 years. In this regard, to maintain the long term investment attractiveness of the industry and provide the country with high-quality cement is possible only subject to state regulation of the construction of cement-producing capacities and cement import. Such regulation could include permits for the construction of new cement plants, regulating gas and electricity prices, changing the tax system for the cement industry, abolishing the state quota for sold cement and mandatory cement sales via the exchange, and developing a legislative framework for the use of alternative fuels and the utilization of municipal solid waste and industrial waste by cement plants.
Author: B.V. Kontsevich.

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