The first episode of the new AAC Leadership Dialogues podcast series, hosted by Mukund Joshi of AAC India Institute, features an in-depth conversation with Mr Chadwick Chen, Chairman of KEDA Suremaker AAC Systems in China.
With more than 35 years of experience in autoclaved aerated concrete, including his former role as Product Director for Xella Asia and his contribution to national AAC standards for blocks and panels in China, Mr Chen provides a broad international perspective on the development of AAC markets, technologies and applications.
Global AAC markets are developing at different speeds
In the interview, Mr Chen describes how AAC markets have changed significantly over the past decade, although in different ways across regions.
In Europe, he observes that production processes have remained relatively stable, while product requirements have changed due to increasing expectations for energy efficiency and thermal insulation. Lower densities and improved thermal conductivity values have become more important as building energy performance requirements continue to rise.
China, by contrast, has seen a major transformation in terms of production capacity, product structure and equipment solutions. According to Mr Chen, the Chinese AAC market has grown into the largest AAC market worldwide. He also highlights the rapid development of AAC panels in China, which have moved from a small niche share to a much more significant part of the market.
India is identified as one of the most promising future growth markets. Mr Chen points to the strong development of the Indian construction sector, the environmental limitations of traditional clay bricks and the increasing interest of investors in AAC production.
Application knowledge is key to market acceptance
A central message of the conversation is that AAC should not be treated as a simple one-to-one replacement for traditional wall materials. Mr Chen stresses that AAC is a system solution.
In the early development phase of the Chinese AAC market, the product faced criticism regarding strength, cracking and durability. In Mr Chen’s view, these problems were often not caused by the AAC product itself, but by incorrect application and a lack of understanding among designers, contractors and workers.
The introduction of appropriate auxiliary materials, such as thin-bed mortar, better construction details and systematic training of workers helped to improve market confidence and product performance.
This experience is highly relevant for emerging AAC markets. For the successful growth of AAC, the entire value chain needs to understand the system: product, design, accessories, detailing and workmanship.
Stable raw materials and skilled labour remain major challenges
Mr Chen also highlights important challenges for AAC producers. Stable raw material quality is essential, especially the quality of lime. The reaction heat and hydration speed of lime can have a decisive influence on production control and product quality.
Another challenge is labour. As AAC production becomes more automated, plants need more skilled operators. At the same time, fewer young people are willing to work in traditional industrial production environments. This trend, already visible in China, may also become relevant in other growing AAC markets.
The right plant concept depends on the local market
The interview also addresses the selection of plant size, mould size and equipment. Mr Chen emphasises that AAC is a largely local building material. Transport distances, local demand, product structure and panel lengths all influence the suitable plant configuration.
His message is clear: bigger is not always better. The best solution is the one that fits the local market conditions.
He also underlines that equipment quality is fundamental for long-term product quality. AAC plants typically operate for 20 to 30 years or more, often under high-frequency and high-load conditions. This requires robust equipment design, appropriate materials and reliable engineering.
Innovation, energy efficiency and carbon performance

Looking ahead, Mr Chen sees continuous innovation as essential for the AAC industry. Important developments include energy-saving production systems, such as steam recycling, and automation solutions for reinforced AAC panel production.
He also expects carbon performance and green building topics to become increasingly important in China, India and other international markets. The comparison of AAC with alternative construction materials in terms of carbon emissions will become a growing field of work for industry associations and manufacturers.
AAC as one global family
A recurring theme in the discussion is international cooperation. Mr Chen describes the global AAC industry as one family. Knowledge transfer between mature and emerging markets can support the wider use of AAC and help avoid mistakes in application, plant investment and market development.
For EAACA, this message is highly relevant. The future growth of AAC depends not only on production technology, but also on standards, training, application guidance, environmental performance and a shared understanding of AAC as a complete building system.
Mr Chen concludes with an optimistic view: AAC, with its combination of low weight, fire resistance, sound insulation, thermal performance and contribution to living comfort, has the potential to gain a much stronger role in wall construction worldwide.