Russia’s CEMROS initiated actions due to the declining cement demand
Photo: Mordovcement production plant (Credit by CEMROS)
CEMROS, Russia’s largest cement producer, announced to rebalance production capacity and redistribute output volumes among the company's facilities, while mothballing certain facilities, due to the declining cement demand. The company is operating 18 cement production plants with a capacity of more than 30 Mta and a market share of about 33%. The cement needs of the Ulyanovsk region will be met for a while by Mordovcement (photo) and the company's Sengileevsky branch, while the demand of the Belgorod and Lipetsk regions will be met by the production facilities of the Oskol and Lipetsk branch. Headcount optimization processes at the mothballed plants are being carried out in strict compliance with Russian labour legislation.
According to Rosstat, the Federal State Statistics Service, in the first 11 months of the calendar year Russia’s cement production declined to 55.704 Mt (million tons), after 61.487 Mt in the same period last year and 59.497 Mt in the year before. In 2025, the YoY decline corresponds to about −9.4%. Under these conditions, the CEMROS management had to make a decision for 2026 to improve competitiveness and maintain economic efficiency, taking into account the production costs and logistical capabilities. The targets were to maintain business stability and to ensure uninterrupted cement supplies for the government and commercial projects and accordingly, this included mothballing certain cement production facilities, while the production will be redistributed among CEMROS's existing enterprises. The plants can be reactivated as soon as possible, if the demand recovers.
All employees from the mothballed plants have been offered vacancies at other CEMROS plants in the regions where they operate, as well as at the management company. CEMROS ensured compliance with all social and financial guarantees, notified employees in advance, and maintained an open dialogue with their teams. Some employees continue to work at the mothballed sites. All other CEMROS plants continue to operate as usual, fulfilling all contractual obligations to customers and partners.
