Analysis of Industry Performance and Exports

During 2023–2025, a total of 54.9 million tonnes of cement were produced by 42 enterprises across the country. Cement production has demonstrated a steady upward trend throughout this period.

Specifically:

In 2023, domestic demand amounted to 16.8 million tonnes, while production reached 15.5 million tonnes (92% of demand);

In 2024, domestic demand amounted to 18.1 million tonnes, while production reached 17.9 million tonnes (99% of demand);

In 2025, domestic demand amounted to 19.9 million tonnes, while production reached 21.5 million tonnes (108% of demand).

For reference: In 2018, domestic demand stood at 12.7 million tonnes, while production totaled 9.2 million tonnes, satisfying 72.4% of domestic demand.

Notably, the expansion of domestic production capacity has virtually eliminated dependence on imports.

By 2025, cement imports had declined by a factor of 44 compared to 2023. Conversely, exports of domestically produced cement expanded significantly, increasing 182-fold to reach 1.8 million tonnes.

At the end of 2025, cement production per capita in Uzbekistan amounted to 580.3 kg,

representing a substantial increase compared to 435 kg recorded in 2023.

For reference: The global average cement consumption per capita ranges between 500 and 550 kg. The highest levels are observed in China (1,200 kg), Türkiye (1,015 kg), Viet Nam (984 kg), and Iran (736 kg).

The average exchange-traded price of cement in 2025 amounted to UZS 651, representing a 4% decrease compared to 2023 (UZS 681.5).

Systemic Challenges and Solutions

The study revealed that despite the industry's strong growth, a number of serious systemic challenges requiring immediate attention remain.

As part of the assessment, surveys and consultations were conducted with 25 cement manufacturing enterprises, entrepreneurs, and academic experts to identify key challenges and formulate proposals.

Survey respondents identified logistics and transportation issues (73%), underutilization of production capacity due to insufficient demand (50%), high production costs (23%), and the need for additional export support measures, including concessional financing and tax incentives (81%).

To assess the efficiency of natural resource utilization by cement manufacturers and discuss existing industry challenges, a meeting was organized with the participation of experts from the Institute of General and Inorganic Chemistry, the State Unitary Enterprise "Fan va Taraqqiyot" ("Science and Development"), and Tashkent State Transport University.

During the meeting, experts proposed:

modernizing ball mills to reduce electricity consumption;

introducing energy-efficient technologies such as VRM (Vertical Roller Mill) and Roller Press systems;

automating grinding processes through Artificial Intelligence (AI) and SCADA (Supervisory Control and Data Acquisition) systems to enable real-time equipment monitoring and control;

implementing granulometric monitoring systems.

The comprehensive analysis demonstrated that alongside positive developments, a number of issues require particular attention. Specifically:

According to the 2025 financial statements submitted by 64 manufacturing and raw material extraction enterprises, only 37% (24 enterprises) reported profits, while 63% (40 enterprises) operated at a loss;

Of the 42 cement manufacturing enterprises, 17 (including 8 holding mining licenses) are currently inactive;

Investments totaling USD 2.5 billion were attracted to 28 enterprises under 44 investment projects; however, 9 enterprises with investments amounting to USD 223.2 million have ceased operations due to financial and other difficulties;

The system for monitoring compliance with obligations stipulated in the feasibility studies submitted for mining development projects and in the conditions of mining permits has not yet been digitalized;

During 2023–2025, subsoil users failed to fully comply with their extraction obligations;

Although the installation of weighbridges at mining sites is mandatory (Cabinet of Ministers Resolution No. 710 dated 28 October 2024), no effective monitoring mechanism exists to ensure compliance;

In 2025, neither the Inspectorate for Supervision of the Mining Industry and Geology Sector nor the Tax Committee conducted monitoring to verify whether the actual volumes of extracted minerals corresponded to mine surveying reports.

International Experience

An assessment of international practices in regulating the cement industry shows that:

China remains the world's leading cement producer, manufacturing approximately 1.8 billion tonnes annually out of the global total of about 3.8 billion tonnes.

In 2024, China adopted the "2024–2025 Action Plan for Energy Conservation and Carbon Emission Reduction," replacing outdated low-efficiency vertical kilns with modern NSP technology.

As a result, energy efficiency improved, production costs declined, and carbon dioxide (CO₂) emissions were reduced by 26 million tonnes in 2025.

Across the CIS countries, digital systems are widely used for managing cement raw material extraction, maintaining quarry cadastres, recording raw materials by type and quality, and separately accounting for extraction losses.

Boston Consulting Group (BCG) has recommended improving the utilization efficiency of existing production capacity and locating production facilities closer to major regional markets, given that production capacity exceeds current market demand.

Proposals and Recommendations

Based on the findings of the study, an action plan was developed to eliminate the identified shortcomings, prevent their recurrence, and further improve the sector.

The proposed measures include:

gradual introduction of a digital product marking system;

mandatory installation of surveillance cameras and weighbridges at cement manufacturing enterprises;

revision of railway freight tariffs for construction materials;

improvement of logistics for the construction materials sector, including increasing the number of railway wagons;

establishment of guaranteed railway wagon quotas based on the needs of cement producers;

introduction of mechanisms for entering information on machinery and vehicles specified in feasibility studies into a unified electronic information system and maintaining their digital records.

Following the completion of the study, the Chamber of Accounts submitted its relevant recommendations and instructions to the Ministry of Mining Industry and Geology, the Ministry of Digital Technologies, the Ministry of Transport, the Ministry of Investments, Industry and Trade, the Association "Uzsanoatqurilishmateriallari," and the Tax Committee for consideration of the findings and implementation of the necessary measures.