Bangladesh cement industry growing with good pace

Cement production in Bangladesh has increased at a healthy rate in the last few years, according to a report by a local cement company. In FY2017-18 domestic output grew 9.4 per cent YoY to 28.43Mt while the year prior it expanded by 10.2 per cent YoY to 26.03Mt.

The report adds that the cement industry in Bangladesh is playing a very important role in the development of physical infrastructure in the country's growing economy. In 2017 total active plant capacity reached about 50.2Mta. By 2019 capacity is forecast to reach the 65Mta mark.

However, despite the huge growth of the industry, with per capita cement consumption of 164kg Bangladesh is still one of the lowest consumers of cement products in the world. Per capita cement consumption is 1700kg in China, 1250kg in South Korea, 800kg in Malaysia, 500kg in Thailand, 270kg in Myanmar and 312kg in India. As a result, the industry is experiencing overcapacity with capacity utilisation currently at 54 per cent. However, this is expected to improve as going forward, demand is expected to grow by around 10 per cent annually in the next five years.