the increase in the price of cement must be justified – Kommersant

Deputy Head of the Ministry of Industry and Trade Viktor Evtukhov said that the increase in the cost of cement production and the further rise in price of products for the end consumer must be justified. He suggested that cement enterprises increase efficiency and, if possible, reactivate their capacities.

“Any price increase must be justified. And we will closely monitor this together with the Federal Antimonopoly Service, and perhaps involving other federal bodies,” said Mr. Evtukhov (quoted from “Interfax”).

The deputy head noted that it is too early to draw conclusions about how much the cost of cement will increase and emphasized that the department is actively working with the regions and the cement industry to formulate cement needs for 2024 and 2025.

“The industry (including enterprises included in Soyuzcement) must not only assess its capabilities in terms of production volumes, but also, importantly, report on the formation of costs. Let me remind you that an increase in the cost of cement does not mean an increase in prices for the final product for the consumer,” he said.

Mr. Evtukhov recalled that the state provides maximum support to cement producers. In particular, due to the implementation of state infrastructure projects, the production capacities of enterprises are fully loaded.

He suggested that manufacturers improve the efficiency of cost management from the point of view of both operational and financial activities, and also consider the issue of reactivating capacities.

“I would especially like to note the importance of effective management of key enterprises in the cement industry. If for some reason management is not ready to optimize its expenses, provide for bank obligations and, as a result, manage the asset efficiently, there is a mechanism established by law for changing owners at such enterprises,” said Viktor Evtukhov.

According to the deputy head, the ministry is ready to continue supporting the industry “with the help of both financial and non-financial instruments.”

Earlier, the NPO Soyuzcement warned of a possible increase in production costs by 17-30%. The rise in costs is facilitated by increased costs for logistics, energy, higher prices for loans and the need to index staff salaries.

More details in the material “The price of cement does not set”.

Alexandra Goroshilova