Capital intensity: The cost of cement plants is usually above €150M per million tonnes of annual capacity, with correspondingly high costs for modifications. The cost of a new cement plant is equivalent to around 3 years of turnover, which ranks the cement industry among the most capital intensive industries.
Transport: Land transportation costs are significant and it used to be said that cement could not be economically hauled beyond 200 or at most 300 km. Bulk shipping has changed that, however, and it is now cheaper to cross the Atlantic Ocean with 35 000 tonnes of cargo than to truck it 300 km.
Energy intensity: Each tonne of cement produced requires 60 to 130 kilogrammes of fuel oil or its equivalent, depending on the cement type and the process used, and about 110 KWh of electricity.