UK cement industry faces looming collapse without policy support, warns industry body

The UK cement industry is facing a severe competitiveness squeeze as high energy, regulatory and labour costs combine with weakening domestic output and rising import dependence, according to the Mineral Products Association.

In an interview with World Cement, the MPA’s Martin Casey said the sector remains fundamental to housing and infrastructure delivery, but warned that recent production data points to a long-term erosion of domestic capacity. The association has said UK cement output fell to 7.3 million tonnes in 2024, the lowest level since 1950.

That decline matters well beyond the factory gate. As Global Cement reported, imports have nearly tripled over the past two decades and accounted for 32% of UK cement sales in 2024, increasing exposure to volatile international markets and raising concerns about materials security. The MPA has argued that if the trend continues, the UK risks exporting both investment and emissions while becoming more dependent on overseas supply.

Casey said policymakers should focus on a genuinely level playing field, starting with industrial electricity prices, which remain among the highest globally. He also called for carbon policy that does not place domestic producers at a disadvantage, and for greater stability to unlock long-term investment. In the MPA’s view, the draft UK carbon border adjustment mechanism, due to begin in January 2027, still needs work if it is to reflect both direct carbon costs and the indirect burden embedded in electricity prices.

The association is also pressing for cement to be included in energy-intensive industry compensation, arguing that the sector is one of the most exposed to carbon leakage. At present, it is excluded, leaving British producers to absorb high power costs without relief. Casey said earlier testing and clearer rates for the CBAM would also improve confidence ahead of launch.

Public procurement could become another lever. The MPA says government buying policy should give greater weight to British-made cement in order to protect domestic production, support jobs and reduce the carbon leakage that comes with importing more materials from abroad.

Decarbonisation remains central to the sector’s longer-term case for investment. Casey said all available measures will be needed, including fuel switching and clinker substitution, but argued that carbon capture remains indispensable because some emissions are inherent to the chemistry of clinker production. The cement and concrete sectors, he noted, have already cut emissions by 63% since 1990, outpacing the wider UK economy.

That makes CCS a core pillar of the industry’s net-zero strategy, but one that depends on infrastructure and policy certainty. Cluster-based projects such as HyNet and the Peak Cluster could reduce costs by sharing transport and storage networks, yet Casey said the system must also work for plants outside those hubs. The MPA wants a government-led CO2 transport and storage plan that covers both cluster sites and more dispersed operations, giving companies enough visibility to plan investments rather than wait for answers.

For a sector that underpins critical infrastructure and large parts of the government’s growth agenda, the warning from industry is clear: without policy support, the UK could lose more domestic production just as demand for resilient, lower-carbon supply chains becomes more urgent.