There are 24 enterprises operating on the cement market in Ukraine, and 2/3 of them are loss-making. Taking into account present production rates, Ukraine is provided with cement raw materials for 320 years. In 2016, enterprises produced more than 9 million tons of cement, and the construction industry consumed 9.5 million tons.
The deficit in terms of domestic production is covered by imports, first of all – from Turkey and the Republic of Belarus. The year 2016 has shown the 40% reduction in Ukrainian cement exports and the increase in imports by 41%.
In Ukraine, the domestic consumption of cement is considerably lower than not only world trends, but also our closest neighbors. We rank the second worst in Europe in terms of this indicator.
In accordance with the study of the range of retail networks, experts estimated that the percent of fake cement products in the Ukrainian market is 60%: 82% of the checked packaged cement turned out to be forgery, while more than 50% of cement had less weight, and about 60% did not meet the strength criteria.
The total cost of business regulation for one economic entity in the market is not less than 400 thousand hryvnas per year.
The current regulatory framework hinders the development of the market while creating a barrier to new technologies and access to external markets, and does not guarantee the protection of consumers from counterfeit and hazardous products.
BRDO experts have prepared the Green Paper “Artificial construction materials: Cement”. We invite you to participate in the survey, the results of which will help us prepare recommendations for changes in the regulation of the cement market. Each response is a chance to create a more favorable business environment and contribute to the development of your organization. For answers: [email protected]
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