Driving Automation and Sustainability in the Cement Industry: A Conversation with Mathias Mersmann

In today’s rapidly evolving industrial landscape, automation and digitalisation are becoming essential drivers of transformation. Industries like cement, which are traditionally seen as conservative, are also experiencing this shift, with leadership playing a critical role in guiding these changes. To explore how leadership can effectively drive automation and digitalisation in the cement industry, I had the privilege of interviewing Mathias Mersmann, Chief Technology Officer of KHD Humboldt Wedag. With over 30 years of experience in the industry, Mathias brings unique insights into how companies can embrace technological innovations while maintaining operational excellence. Our conversation focused on the challenges, opportunities, and future of automation, digitalisation, and AI in the cement sector, as well as the leadership qualities needed to make these transformations successful.

Can you share your personal journey in the automation industry and what inspired you to focus on solutions for the cement sector?

My journey in automation began from the application side, which I believe is crucial for developing robust automation solutions in the cement industry. Over the past three decades, I have seen numerous advanced process control (APC) proposals, but very few have delivered sustainable performance in cement plants. Automation for cement plants is one of the most challenging objectives, even for big data companies, due to the constant fluctuations and disturbances in the process. I started in this industry by chance, having grown up in a region in Germany known for cement plants. Ironically, I had no plans to enter the industry, but once I did, I found it fascinating. The cement industry is global yet feels like a small family. It’s a dynamic and complex sector with enormous potential for process optimisation, which keeps me engaged.

What are the most significant changes you’ve seen in the cement industry due to automation and digitalisation?

Automation in the cement industry is not new; it’s been evolving for decades. From relay technology in the 1950s to AI-driven control systems today, cement plants have consistently adopted new technologies. However, despite this long history, no universally accepted “gold standard” for automation solutions exists. Every plant operates under unique conditions, which limits the transferability of automation systems from one plant to another. While automation has certainly improved performance and availability, the industry still faces challenges in creating robust, universally effective solutions.

How does your company differentiate itself in providing automation solutions for the cement industry?

We differentiate ourselves by integrating deep process knowledge with advanced automation. As an OEM supplier, we handle machine-related automation and basic engineering for electricity supply and automation at the plant level. Our strength lies in our real-time optimisers, which combine proprietary and third-party technologies, including AI, to consistently optimise production. What sets us apart is our ability to merge technology with the intimate process knowledge we’ve acquired over the years. Automation in cement is most effective when it is built upon a deep understanding of the production process, and that’s where we excel.

What leadership qualities do you believe are essential in driving digital transformation within traditional industries like cement manufacturing?

Experience is crucial in leading digital transformation in the cement industry. While it may seem old-fashioned, the conservative nature of the industry has proven successful. Leaders must balance the “technology push” of new data technologies with the “market pull” of cement plant requirements. It’s essential to speak both the language of technology and the language of the plant’s operational needs. A leader in this space also needs stamina and honesty. Implementing high-level automation in cement is not a fast process, and leaders must be patient and realistic about the timeline for seeing results.

How have automation solutions impacted operational efficiency and sustainability in cement production?

Automation has been a game-changer for operational efficiency, though the improvements may seem modest at first glance. The cement industry is already highly energy-efficient, with most plants operating at 70-80% efficiency. Our high-level optimisation systems typically improve efficiency by 5-10%, which is significant given that energy accounts for about half of cement production costs. Moreover, automation plays a vital role in supporting sustainability initiatives, such as reducing CO2 emissions through optimised use of alternative fuels.

What role do you think data analytics and AI will play in the future of cement manufacturing, and how is your company preparing for this?

AI and data analytics will be essential for the future of cement manufacturing, particularly in areas like predictive maintenance and real-time optimisation. However, I don’t expect AI to be a “silver bullet” for all problems. The variability in cement plant data—due to fluctuating raw materials and other factors—limits the transferability of AI models between plants. At KHD, we’ve developed a real-time optimiser with hybrid AI that combines neural networks with human intelligence (HI), ensuring that our solutions are adaptable and reliable.

How is the rise of AI affecting the role of humans in cement plants? Is there a risk that human experience and intuition will be lost?

While AI is making a significant impact, I don’t foresee it replacing human expertise anytime soon. The cement industry is too complex, with site-specific challenges that require human intuition and decision-making. AI will support human operators by optimising certain processes, but plant-specific boundary conditions will still require human oversight for the foreseeable future.

How does your leadership style influence innovation and the implementation of digital solutions within your company?

Leadership is key in driving innovation, especially in an industry as robust as cement. Leading change requires a clear vision and the ability to demystify new technologies for employees. It’s about creating a positive narrative around digital transformation, showing the team that it’s not “witchcraft” but something that can be understood and used effectively to enhance our operations and business models.

What challenges do you foresee in further automating the cement industry, and how is your company addressing them?

One of the biggest challenges is the need for a digital twin, a virtual model that runs in parallel to the real plant, providing access to real-time data. The cement industry is still in the early stages of adopting this technology. At KHD, we are developing our digital twin suite, ProMax, which will allow us to optimize plant operations and maintenance processes more comprehensively. It’s an ongoing journey, but I believe digital twins will become a standard tool in the industry.

In conclusion, how do you think AI will shape the broader business strategies of cement companies in the long term?

AI will open up new revenue streams and business models, especially in integrating the entire value chain from raw material extraction to concrete production. AI-driven technologies will help cement companies reduce their carbon footprint and create more efficient production processes. However, it will take time—likely decades—for AI to fully realise its potential across the cement industry.

Conclusion

The insights shared by Mathias Mersmann underscore the significant role that leadership plays in the transformation of traditional industries like cement. His approach to blending deep process knowledge with cutting-edge automation solutions highlights the importance of a balanced strategy—one that leverages both human experience and advanced technology. As automation and AI continue to reshape the future of the cement industry, leaders must be patient, resilient, and willing to demystify new technologies for their teams. The journey toward full automation and digitalisation is just beginning, and leaders like Mathias are at the forefront, ensuring that these innovations translate into long-term value for both companies and their customers.