Mongolia is able to meet the nation's domestic needs for cement production by the year 2015. But it is likely that more foreign cement producers will create competition in the marketplace. Industry officials say the state isn’t taking adequate measures to handle the situation.

In Sergelen soum of Central Province, a Chinese-owned factory with the capacity to produce one million tons of cement annually is being built. Critics say that if this factory opens, it will include many workers from abroad and the factory's production will destroy Mongolia's goal to provide its domestic needs by 2015.

In the last three years, Mongolian cement production has expanded with the support of commercial bank loans. Mongolia’s recent economic expansion – in particular, the growth in FDI, mining and construction - has created a greater need for roads, buildings and other infrastructure development, and has resulted in a significant increase in the demand for building materials. In most developing countries, annual cement consumption averages one ton per person. Domestic producers criticize the government for not making adequate moves to support their efforts.