UK cement production drops to lowest levels since 1950s

Pritti Mistry & Simon BrowningBusiness reporters, BBC NewsGetty ImagesUK cement manufacturing has fallen to its lowest stage since 1950, placing the federal government’s home constructing plan in danger, a commerce physique has warned.Cement is the important thing binding ingredient in concrete, which is essentially the most extensively used materials within the building business, and mortar.The Mineral Merchandise Affiliation (MPA) mentioned manufacturing ranges have been “more and more underneath risk” as a result of excessive vitality, regulatory and labour prices.The Division for Enterprise and Commerce mentioned it recognised challenges within the sector and its Industrial Technique was growing assist for energy-intense corporations, which embrace cement producers. The Labour authorities has pledged to construct 1.5 million new houses in England by 2029 as a part of efforts to unravel the housing disaster and increase financial development.Beneath a separate funding technique unveiled in June, Chancellor Rachel Reeves pledged to pour £725bn over the subsequent decade into sustaining current infrastructure and constructing new initiatives.However the UK made simply 7.3 million tonnes of cement in 2024, in line with the MPA, which represents producers of merchandise comparable to asphalt and cement.The commerce physique mentioned that was about half of that produced in 1990 and just like manufacturing ranges seen when rationing was nonetheless in place following the World Conflict Two.MPA government director Dr Diana Casey mentioned the decline threatened to derail the federal government’s ambitions for housing, infrastructure and clear vitality initiatives.”[You] cannot construct homes, bridges or railways with out us,” she advised the BBC.”So the very fact manufacturing has declined a lot at a stage since 1950 is worrying,” she continued, including that it “might affect authorities targets like houses and hospitals and energy crops which can be as a result of be constructed”.The MPA mentioned a venture such because the Sizewell C nuclear energy plant may wish as much as 750,000 tonnes of cement and a brand new hospital would require practically 8,000 tonnes.A conventional four-bedroom dwelling wants between three and 5 tonnes.The MPA mentioned manufacturing had fallen as a result of rising prices and modifications to carbon taxation, which lowered market competitiveness and was a significant concern to the sector.It additionally highlighted the expansion of cheaper cement import gross sales practically tripling over the previous 16 years, from 12% in 2008 to 32% in 2024. Ms Casey mentioned extra motion was wanted to chop electrical energy costs, which have been “disproportionately affecting the business”.”[The] UK is uncompetitive due to excessive prices – vitality significantly – and regulatory burden due to carbon, due to this fact it’s cheaper to import cement,” she mentioned.”We’re calling on the federal government to assist put home manufacturing on a stage enjoying area in order that it could compete pretty with imports.”In an announcement, the Division for Enterprise and Commerce mentioned: “We recognise the cement sector faces challenges which is why our trendy Industrial Technique is growing assist for energy-intensive companies by means of our Supercharger scheme, which can slash vitality costs for eligible companies.”In keeping with the MPA, about 40% of British cement is manufactured within the Peak District, with the remainder of the manufacturing unfold throughout the UK.The commerce physique fears jobs may very well be in danger and “disappear sooner or later” if imports rise.Rico Wojtulewicz, head of coverage and market insights on the Nationwide Federation of Builders, mentioned it was getting more durable for building companies, as a result of there have been many stalled initiatives which meant there was a lowered want for domestically manufactured cement.Constructing prices had additionally continued to rise, he added, which was pushing smaller builders out of the sector and driving others to search out financial savings.”They’re all on the lookout for higher priced supplies,” he mentioned.