The Mineral Products Association (MPA) has called on the UK government to address the underlying competitiveness issues facing British cement manufacturers following newly-announced support for the ceramics and chemicals industries.
Despite being one of the most energy intensive manufacturing sectors, cement is already excluded from government support such as the Energy Intensive Industries (EII) Compensation Scheme. The MPA says this leaves domestic producers battling energy prices much higher than those faced by overseas competitors.
Sector leaders have long been campaigning for several key policy actions needed to level the playing field for British cement producers and secure the future of the 200-year-old industry.
The MPA has called for measures to tackle sky-high energy and carbon costs, such as a watertight Carbon Border Adjustment Mechanism (CBAM) and the announced increase in network cost compensation.
MPA executive chair Chris Leese commented: “We really need the Government to address the underlying reasons so many heavy domestic industries are facing such existential challenges. UK industrial energy prices have been uncompetitive for many years, and we have been outpaced by the EU on key policy areas such as the CBAM and carbon capture, leaving domestic markets vulnerable to higher-carbon imports.
“As a country, we need to reverse the conveyor belt to deindustrialisation. British cement production is struggling to compete against rapidly increasing imports, causing a severe risk of carbon leakage and putting high-quality industrial jobs at risk in communities that have relied on them for generations.”
