Uzbekistan has solidified its position as a global leader in the cement market, achieving the highest year-to-date (YTD) cement volume growth of 31.3% as of September 2024, a feat unmatched by any other nation reports CementReveiw. This remarkable growth underscores the nation’s transformation into a key player in the global construction materials sector, driven by bold government reforms, strategic investments, and robust infrastructure development.
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Transforming Challenges Into Opportunity
While the global cement market has largely struggled in 2024, with major economies like Argentina (-26.3%), Germany (-19.9%), and China (-10.7%) facing steep contractions, Uzbekistan has defied the trend. Even high-growth markets such as Sri Lanka (28.8%) and Malaysia (17.6%) fall short of Uzbekistan’s exceptional performance.
This remarkable success is rooted in the proactive measures introduced by President Shavkat Mirziyoyev through his decree dedicated to accelerating the development of building materials industry. Signed in 2019, the decree provided a roadmap for expanding the resource base of the construction industry and diversifying its product range by 2025. Key initiatives included:
- Doubling cement production and tripling composite basalt reinforcement output.
- Increasing limestone processing by 13.1mn tons, gypsum stone by 1.8mn tons, and sand and gravel materials by 5.6mn cubic meters.
- Scaling up wallpaper production by an astounding 47 times.
The government also introduced measures to support local manufacturers, including subsidizing export certification costs, reducing taxable bases for infrastructure investments, and facilitating international credit lines totaling over $500 million for building materials projects.
Record-Setting Growth in 2024
As of 2024, Uzbekistan operates 38 cement enterprises with a combined annual production capacity of 35.3mn tons, which is expected to increase to 40.8mn tons by year-end. In the first four months of the year alone, the country produced 4.8mn tons of cement, reflecting a 19.3% increase compared to the same period in 2023.
Major producers, including Kyzylkumcement, China Energy International Group Samarkand Cement, and Huaxin Cement Jizzakh, collectively contributed nearly 1.2mn tons, showcasing the industry’s consolidation and productivity. This strong performance has also led to a reduction in cement prices, with the average cost of a ton now 510,000 soums, 15% lower than last year.
What’s Driving Uzbekistan’s Success?
Uzbekistan’s booming cement industry reflects the country’s strategic investments in infrastructure and housing. Key government projects, including road networks, urban development, and export-oriented manufacturing, have driven demand for construction materials. Additionally, Uzbekistan’s production growth outpaces global averages, as evidenced by a 74.1% increase in production volume and a 55.6% rise in production per capita since 2017.
Earlier this year, Daryo reported that in January 2024, Uzbekistan’s major enterprises manufactured 627,900 tons of cement, marking a 2.3-fold increase compared to the same period in 2023.
Long-Term Foundations Since 2017
Uzbekistan’s cement industry’s success in 2024 is the culmination of a long-term strategy initiated in 2017. According to Daryo, the country initially produced 8.9 million tons of cement across 12 enterprises in five regions. Over the years, the establishment of 25 new energy-efficient facilities employing “dry” technologies has significantly increased production capacity to 26.6 million tons as of 2023.
In 2023, Uzbekistan produced 15.5 million tons of cement, achieving a per capita consumption of 431 kilograms, a notable improvement though still below the global average of 510 kilograms. This highlights both the impressive strides made and the untapped potential in the market.
The government’s focus on education has further supported the sector’s growth. Specialized training programs in cement and building materials production have been introduced at institutions such as the Bukhara Engineering and Technology Institute, Jizzakh Polytechnic Institute, and Ferghana Polytechnic Institute to develop a skilled workforce for the industry.
Global Leadership in Context
Uzbekistan’s cement industry now leads the global market, outpacing peers in both production growth and innovation. In comparison, many developed and emerging markets have faced economic headwinds, dampening demand for construction materials. For example, the USA and Chile recorded declines of -4.5% and -5.4%, respectively, while regional neighbor Kazakhstan posted a -1.3% drop.
This exceptional growth is not only a regional success story but also positions Uzbekistan as a global leader in the construction materials industry.
Outlook for the Future
With its cement production capacity set to reach 40.8 million tons by the end of 2024 and continued government support for diversification and efficiency, Uzbekistan is poised for further growth.
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