Algerian cement market developments
Italian Catalgirone Group intends to sign partnership agreement through its branch Cementier with an Algerian company, according to which it will
start to produce cement in Algeria, reported the Algerian newspaper <i>al-Khabar</i> (August 17, 2005). The Italian company, which at present exports cement to Algeria, will go through transition stage in which it will supply
cement from its storages in Algeria and will supply the local market with cement based on international standards.
This project comes after the Saudi Pharaon Commercial Investment Group
had signed last July a contract allowed it to purchase 35% of the capital
of the Algerian Beni Saf cement plant, to raise production from 600,000 tones
to 1 million tones annually within the next 12 months, and to invest $2
million in the first stage and $25 million in the next stage in widening the
plant and in the establishment of white cement production unit.
In addition, Turkish companies announced that they will establish
cement plant with production capacity of 1 million tones annually in the
Algerian province of Djelfa. Algerian Cement Company (ACC), which belongs to
Orascom, also accomplished recently several new projects, such as Al-Masila
unit, which produces 4.4 million tones, and the white cement plant, which has
production capacity of 400,00 tones at the western part of the country.
The Algerian cement production is estimated by 12 million tones; 70% of
it is supplied by the public sector, which produces approximately 9 million
tones. Official estimation shows that Algeria will need 15 million tons
cement in 2006. The new joint projects, including the project which the
European group Holcim intends to accomplish in Ghalizan Provine, with
production capacity of $1.2-$1.4 million tones and investments between
150 and 250 million Euros, are expected to cover the needs of the local
market in 2006.