Cement demand in the CIS markets of Azerbaijan, Kazakhstan, Turkmenistan, Ukraine and Uzbekistan has demonstrated sound growth in recent years, particularly in light of some of the corrections seen in parts of Europe. The region is now seeing the entry of a number of new players as well as the expansion and modernisation of existing facilities as producers look to keep in line with further increases in demand and employ the most modern and efficient production techniques available.

In 2012, cement demand in the five CIS countries covered by this report totalled 28.97Mt compared with a production level of 28.17Mt. With the exception of Ukraine (which saw a strong performance in 2011), demand continued its upward trend and Azerbaijan, Kazakhstan and Turkmenistan in particular all registered double-digit growth rates.

Capacity in the region last year totalled 43.96Mta with Ukraine accounting for the lion’s share of 19.3Mta. With further gains in consumption anticipated across the region, new capacity investments are on the rise as countries pursue self-sufficiency and reduce reliance on imports. Existing plants are also being upgraded with modern technology as producers look to scale back on operating costs, improve environmental performance and bring the region’s manufacturing base more in line with the highest European standards.