Russia’s largest cement producer cuts production due to demand crisis
Russia’s largest cement producer, the holding company “Cemros,” has temporarily stopped operations at two plants in the Belgorod and Ulyanovsk regions.
A company representative said that another plant in the Lipetsk region has been put on a limited operating schedule. Only the milling, packaging, and laboratory divisions are currently functioning there.
The main reason for the production halt is a sharp drop in cement demand due to a decline in residential construction. The situation is further complicated by the active supply of cheaper cement from Belarus and Iran.
The holding company emphasized that foreign producers are dumping prices, lowering them below the cost of Russian cement. As a result, keeping some plants operational has become economically unprofitable.
The company representative clarified that in the Ulyanovsk region, demand for cement is virtually nonexistent, while in Belgorod it has fallen by approximately 13–15% over the past year.
The downtime at the plants will be used to assess new market conditions, reduce costs, and explore avenues for business diversification.
