Bangladeshi cement manufacturers have rejected the US Trade Representative’s claims of industry overcapacity, asserting that production levels align with growing domestic demand due to significant infrastructure projects and a rapidly expanding economy. They highlighted that Bangladesh exports very little cement, mainly to India, with almost no shipments to the US.
The Bangladesh Cement Manufacturers Association (BCMA) noted that the country has 41 cement plants with a combined annual capacity of 86.02Mt, while domestic demand reached 39.75Mt in 2025. Industry leaders argue that this capacity is necessary to meet future demand, with an average annual growth rate of around 8 per cent.
They explained that capacity should not be viewed as excessive but rather as a long-term planning strategy. Factors such as raw material imports, seasonal demand spikes, and maintenance needs lead to underutilisation at times, making it crucial to maintain adequate capacity.
Industry executives emphasised that current production levels and investments reflect sustained infrastructure development rather than overinvestment or overproduction. With per capita cement consumption significantly lower than in neighbouring countries, they believe there is substantial room for growth as urbanisation continues.
Additionally, Mohammad Iqbal Chowdhury, chief executive officer of LafargeHolcim Bangladesh PLC, told the media that the sector has expanded significantly over the past 15 years in anticipation of sustained infrastructure investment. He said Bangladesh exports very little cement, with shipments to the US almost nil. Limited exports mainly go to India.
“For that reason, it is difficult to see how the overcapacity of Bangladesh’s cement industry is linked to the US market,” he said, adding that the sector’s surplus reflects long-term investment decisions by local companies anticipating continued infrastructure growth.
Similarly, Md Moshiur Rahman, chief executive of Akij Resource, which oversees Akij Cement, said the country’s cement capacity should be understood in the context of long-term development needs.
With per capita cement consumption at around 210 kilograms, far below China’s 1,700 kilogrammes and roughly half of India’s, he said there is substantial room for growth as urbanisation and infrastructure expansion continue.
He also mentioned the presence of multinational companies such as LafargeHolcim, Heidelberg Materials, and Thailand’s INSEE, which together account for around a quarter of total production.
By Abdul Rab Siddiqi, Pakistan
