Breedon is pressing the government for further action on energy costs, carbon-border rules, procurement, and industrial decarbonisation as it argues that UK cement production faces a structural disadvantage against imports.
The construction-materials group has renewed its Back British Cement campaign, launched in January, following discussions with the Department for Energy Security and Net Zero, Department for Business and Trade, and Treasury.
Breedon says UK cement production is at its lowest level since 1950 and imports now account for more than a third of domestic sales. The company argues that overseas manufacturers can benefit from lower industrial electricity costs and, in some markets, less demanding carbon-pricing regimes.
Rob Wood, chief executive of Breedon, said: “Our Back British cement campaign advocates for a level playing field for the domestic cement industry, including effective carbon border measures, to support UK construction, economic growth and national resilience.”
The company is seeking more detail on the UK Carbon Border Adjustment Mechanism before its planned introduction in January 2027. In particular, it wants clarity over how the carbon content and associated cost of imported cement will be calculated.
It is also calling for closer alignment between UK and European carbon-pricing arrangements. Cement is a heavily traded industrial product, and differences between regulatory systems can influence both import costs and the competitiveness of domestic plants.
Energy is another central concern. Cement manufacture requires substantial power and heat, exposing producers to industrial electricity and fuel costs. Breedon wants cement included within compensation arrangements designed to reduce the electricity-cost disadvantage faced by energy-intensive UK industries.
The dispute illustrates a broader policy challenge around industrial decarbonisation. Domestic manufacturers are being required to invest in lower-carbon production while competing against imports produced under different environmental, energy, and tax regimes.
If those costs diverge too far, production can shift overseas without necessarily reducing the emissions associated with British consumption. That risk of carbon leakage is one reason governments are introducing border mechanisms designed to apply a comparable carbon cost to selected imports.
The effectiveness of those systems will depend heavily on their design. A weak mechanism may fail to remove the cost gap between domestic and imported products, while a complicated one can increase administration and trade friction for manufacturers and customers.
Breedon is also seeking greater recognition of British cement and concrete within public procurement. Government-backed housing and infrastructure programmes consume large volumes of construction material, giving procurement policy the potential to influence investment in domestic plants and supply chains.
Chief executive of Breedon GB Mike Pearce said: “Procuring more British cement for government backed projects, whether infrastructure or housing, rather than imports, can also make a significant difference to job security and supporting communities across the country.”
Decarbonisation remains an unavoidable part of the industry’s cost base. Cement produces emissions from both the energy required to heat raw materials and the chemical process involved in making clinker. Carbon capture, alternative fuels, changes in material composition, and more efficient production can reduce emissions but require significant capital.
Breedon wants faster support for carbon capture, fuel switching, and other low-carbon technologies while maintaining domestic production. The group’s position is that industrial policy needs to treat competitiveness and decarbonisation as linked rather than separate objectives.
The approach taken before the 2027 carbon-border regime will influence future investment decisions across the sector. Plants need confidence that lower-carbon production can remain commercially competitive if they are to commit capital to equipment expected to operate for decades.
With housing and infrastructure policy dependent on reliable supplies of cement and concrete, the argument extends beyond one manufacturer. The question for government is how to reduce industrial emissions without increasing dependence on imported material produced under weaker or simply different cost structures.
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