Iran’s cement industry faces catastrophic shutdown as power crisis deepens

Iran’s cement industry is on the brink of collapse as the country’s escalating electricity crisis threatens to cripple one of its key economic sectors. The head of Iran’s cement manufacturers’ union has warned that power allocations to cement plants could be slashed by as much as 90 per cent due to severe nationwide power shortages. The dramatic reduction would effectively halt production at most facilities across the country.

The announcement represents a stark warning about the ripple effects of Iran’s energy crisis on its broader economy. The cement industry is a major employer and significant contributor to Iran’s GDP, with the sector heavily dependent on reliable electricity supplies to operate its energy-intensive manufacturing processes. A near-total shutdown of cement production would not only devastate the industry itself but would also have severe knock-on effects for construction, infrastructure development and other dependent sectors.

The power crisis afflicting Iran stems from multiple factors, including ageing infrastructure, insufficient investment in energy production, and sanctions that have limited the country’s ability to import fuel and upgrade its electrical grid. During summer months, demand for electricity typically surges due to widespread use of air conditioning, exacerbating the strain on the system and forcing authorities to implement rolling cuts to industrial consumers.

The cement union’s warning suggests that without urgent intervention, Iran could face broader economic deterioration as other major industries face similar electricity restrictions. Officials have not yet outlined a timeline for when power allocations might be restored or what measures might be taken to ease the crisis affecting the industrial sector.

Source: Maariv — Original article in Hebrew.