Bangladesh's cement industry faced a challenging year in 2024, with sales contracting significantly. The sector attributed this downturn to political instability, rising production costs and delays in government infrastructure projects, leaving the industry using less than half of its capacity.
According to local media, Mohammad Iqbal Chowdhury, CEO of LafargeHolcim Bangladesh Plc, explained that cement sales declined due to a combination of factors, including political unrest, macroeconomic challenges, inflation and the suspension of government infrastructure initiatives. Industry experts echoed these concerns, noting that these issues have caused significant disruptions in the construction sector.
On the subject, Mohammed Amirul Haque, managing director and CEO of Premier Cement Mills Ltd, highlighted that the halt in major infrastructure projects, which are key customers for the cement industry, has worsened the situation. Despite these obstacles, Mr Haque remains optimistic, believing that political stability and economic recovery could lead to a rebound in sales.
According to the Bangladesh Cement Manufacturers Association, the country has 42 cement factories with a combined production capacity of 8.4Mtpm. However, Dalim reported that sales have dropped to just 3.4Mtpm, representing a mere 45 per cent of the industry's capacity. He noted that the challenges are further exacerbated by soaring production costs, particularly due to increased electricity and fuel prices.
Mohammed Khurshed Alam, executive director of Fresh Cement (part of the Meghna Group of Industries), highlighted the severe challenges facing the cement sector, primarily due to declining demand. He mentioned that manufacturers had been forced to reduce prices by at least 15 per cent despite rising production costs to remain competitive. He added that the industry's woes are compounded by soaring production costs, which are driven by hikes in electricity and fuel prices.
by Abdul Rab Siddiqi, Pakistan
