Submitted:
17 September 2025
Posted:
18 September 2025
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Abstract
Keywords:
1. Introduction
2. Materials and Methods
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- Population Growth - The world population (now ~8 billion) is projected to approach 10 billion by 2050, increasing the need for housing and infrastructure.
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- Urbanization and Living Standards - By 2050, roughly 2 billion additional people are expected to live in cities, expanding urban construction at unprecedented scale.
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- Climate-Resilient Construction - The urgency of climate change has created high demand for sustainable building solutions and spurred the emergence of innovative low-carbon technologies in construction.
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- Infrastructure Development - There is growing demand for both new infrastructure and the rehabilitation of existing structures, which together drive cement consumption.
Decarbonization Imperatives and Technological Innovation
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- Alternative Fuels: Transitioning from coal and other fossil fuels to alternative fuels such as biomass, municipal solid waste-derived fuel (RDF), and even hydrogen for kiln heating. Modern Hungarian cement plants are already equipped to utilize up to 100% alternative fuels, processing wastes like plastics, rubber, and sewage sludge instead of coal. This not only cuts CO₂ emissions but also supports a circular economy by diverting waste from landfills.
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- Alternative Raw Materials: Partially substituting or supplementing traditional clinker with industrial by-products or other additives (e.g. fly ash, slag, or decarbonized materials) to reduce the limestone required and thereby lower process emissions.
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- Green Electrification: Reducing the carbon footprint of cement production’s electrical energy use by increasing the share of renewable electricity and improving energy efficiency. This may involve on-site renewable generation and energy storage to ensure a reliable low-carbon power supply.
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- Cleaner Transportation: Lowering emissions from the transport of raw materials and products by adopting electric or hydrogen-fueled vehicles for quarrying operations and cement distribution. Given that transportation currently accounts for a small but non-negligible portion of cement’s CO₂ emissions, greener logistics can further shrink the industry’s overall carbon impact.
Policy and Economic Challenges
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- Királyegyháza Cement Plant (Holcim): Approx. annual CO₂ emissions: 500,000 tons
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- Beremend Cement Plant (Duna-Dráva Cement – DDC): Approx. annual CO₂ emissions: 500,000 tons
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- Beremend Lime Plant (Carmeuse): Approx. annual CO₂ emissions: 300,000 tons
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- Cement, lime, and gypsum manufacturing (approx. 80%)
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- Steam and air conditioning supply (7–8%)
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- Wood, cork, and wickerware manufacturing (7–8%)
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- Transport infrastructure construction (roads and railways) also ranked among the higher-emitting sectors during 2014–2016.
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- The construction sector at large, as the primary downstream consumer of cement, is indirectly implicated in the county’s emissions profile.
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- Investment in workforce reskilling and upskilling
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- Promotion of green economic diversification, technological shifts, R&D, and innovation
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- Development of renewable energy infrastructure
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- Support for environmentally sustainable household energy production and consumption
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- We anticipate that if cement manufacturers reduce production volumes in response to regulatory or economic pressure, this may trigger reductions in procurement from subcontractors and suppliers. These ripple effects may, in turn, compel affiliated SMEs to pursue alternative business strategies or exit the market altogether. Furthermore, such developments are likely to affect the internal workforce of large producers and delay their decarbonization progress. A potential benefit, however, is the reduction in CO₂ emissions. These factors must be critically considered in the design of training and retraining programs, as well as in initiatives promoting green diversification and technology transitions.
3. Results and Discussion
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Questions related to workforce impact:
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- To what extent were employees laid off in the industry in Baranya County in 2024 (as a percentage of the total workforce)? How many individuals does this represent?
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- Among the various segments of the workforce, which groups were affected by the wave of layoffs in 2024, and to what degree?
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- What alternative measures have production units implemented to mitigate the impact of reduced production on employment? What was the distribution (%) of these measures in terms of workforce retention?
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- If the company engages in the international secondment of labor to cement factories in other countries, for which types of employees is this already occurring, which categories are planned for future deployment, and to what extent?
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Questions regarding the impact on suppliers/subcontractors:
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- Which categories of suppliers and subcontractors—classified by industry group—are affected by the above-mentioned developments? How many companies are impacted in each supplier type?
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- What level of workforce downsizing is expected among suppliers and subcontractors in each industry group (expressed as a percentage)?
- What other negative effects are anticipated?
Key Findings Based on the Survey Responses:
- 1. Workforce-Related Observations:
- 2. Findings Concerning Suppliers and Subcontractors
- 3. Other Anticipated Negative Impacts
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- Waste management performance is projected to deteriorate significantly: in 2025, only one-third of the volume of waste recycled in 2021 is expected to be recovered.
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- A substantial decline is anticipated in local business tax revenues, directly linked to the shrinking economic footprint of affected companies.
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- Electricity consumption is projected to fall to one-third of its previous level, resulting in losses in system usage fees for the local energy grid.
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- Annual investment levels (Maintenance and Development CAPEX) are also expected to decrease sharply, with negative implications for equipment renewal, innovation, and regional economic stimulation.
5. Conclusions
| 1. | Oral: Tamás Hoffman, President, Cement, Concrete and Lime Industry Association, 2024.04.09 |
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