Henning Sasse
Chairman
Azerbaijan Cement Producers Association
In 2025, the Azerbaijani cement sector was affected by a contraction in domestic demand. The total domestic market declined by approximately 4%, which naturally led to a lower level of capacity utilisation across the industry.
At the same time, this development clearly demonstrates that the existing clinker capacity of the Azerbaijani cement industry is fully sufficient to supply the domestic market.
From a structural perspective, the industry remains well positioned, with adequate installed capacity and modern production facilities capable of responding to market demand without the need for additional large-scale capacity expansions.
In the medium to long term, if additional capacity is required, this should not be addressed through conventional clinker production. Instead, future capacity needs should be met through advanced low-carbon solutions, such as reduced-clinker cements, calcined clay technologies, or comparable innovative approaches, in line with global decarbonization trends of the cement and concrete industry.
Looking ahead, international cooperation will play a central role in strengthening the technical and institutional capacity of the Azerbaijani cement sector.
Post-2026: Transition from Capacity Expansion to an Efficiency-Driven Phase
By 2026, various capacity optimization projects will already have been completed, as these were largely finalized in previous years. Therefore, the industry does not face any outstanding capacity optimization challenges.
Going forward, the focus will remain on continuous efficiency improvements and sustainability measures rather than further capacity-related projects. Key priority areas include:
- Further expansion of alternative fuels and alternative raw materials
- Continued efforts to reduce the clinker factor through product and process optimization
- Ongoing improvements in energy efficiency and operational performance
- Continued efforts on digital transformation
These initiatives aim to strengthen the long-term competitiveness of the Azerbaijani cement industry while supporting its transition towards more sustainable production practices in line with international developments.
Strengthening International Cooperation and Institutional Capacity
Looking ahead, international cooperation will play a central role in strengthening the technical and institutional capacity of the Azerbaijani cement sector. We intend to further develop cooperation with our partners in Türkiye, in particular with TürkÇimento (Turkish Cement Association), as well as with international organizations such as the Global Cement and Concrete Association (GCCA).
In parallel, we aim to work closely with relevant Azerbaijani government authorities to jointly advance initiatives related to CO2 emissions reduction. This cooperation will be guided by Azerbaijan’s Nationally Determined Contribution (NDC) and broader climate commitments.
Through coordinated efforts at national and international levels, we hope to support the development of a clear, realistic roadmap for decarbonization, while maintaining the competitiveness of the Azerbaijani cement industry.
