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The cement industry of Russia, as one of sub-sectors of the construction materials industry, actively carries out the task on realization of national economic development programs.

According to the statistics on January 1, 2009, cement works of large holdings (such as CJSC EUROCEMENT group, Holcim, and OJSC Holding Company Sibirskiy Cement) reduced cement output volumes to 8,8 MT in 2008 due to unwillingness to decrease release prices for cement and cement distribution services through their marketing structures. In this connection in 2008 cement production of the country declined to 10,6 % compared to 2007 and amounted to 53,6 MT.

Despite the decline in overall cement production of Russia, the consumption of cement by the construction complex of the country reached 61.6 MT in 2008 that exceeded cement consumption index specified in 2007 by 0.5 MT.

Recovery of cement consumption in 2008 was achieved, on the one hand, owing to the increase of cement output at 24 (twenty-four) cement works compared to 2007, and, on the other hand, due to the growth of import cement from 2.8 MT in 2007 to 7,5-7,8 MT in 2008 (estimation) with participation of branches of JSC BaselCement and others.

Because of the cut down and untimely allocation of investments for the construction complex in 2008 realization of the scheduled program of housing construction, especially in the Central Federal District, and other programs was delayed. By the end of 2008 the demand for cement was decreased.

However, according to the Government of the country and experts of Federal Ministries and Departments, this phenomenon is temporary.

It is expected that in 2009 and in the following years the construction industry in Russia will develop, therefore, the demand for cement will grow.

The gain in cement consumption volumes in the country should stimulate the increase of domestic cement output volumes by means of Russian cement works and reduction of import cement.


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