Displaying items by tag: LafargeHolcim Algeria

Two new stories from Algeria this week highlight a changing industry. Firstly, Groupe Industriel des Ciments d’Algérie (GICA) started marketing cement from its new Sigus integrated plant. The unit was commissioned earlier in the year. Secondly, clinker export figures for the sector show 10-fold growth year-on-year to a value of US$30m for the first five months of 2019.

Graph 1: Cement production and capacity in Algeria, 2012 - 2018. Source: Algerian National Office of Statistics, United States Geological Survey, Global Cement Directory 2013 - 2019. Estimates supplied for 2017 and 2018.

Graph 1 above depicts the moment that lots of new production capacity started to be ordered and then commissioned in 2017. The Global Cement Directory lists new plant projects as they are announced so the trend from 2016 to 2017 may not be as pronounced as it seems but the general destination remains the same. A Ministry of Industry and Mining report estimated that production capacity would reach 40Mt/yr in 2020. Consumption was reported at 26Mt in 2016.

To cope with this the cement industry in Algeria has been moving towards an export model over the last few years. Industry and government figures started to warn of an end to imports in 2016. This quickly flipped to prognostications of production overcapacity in 2017. This then became a stream of news stories about export operations from the local industries to places like West Africa. One consequence of this were problems for foreign exporters in Tunisia and Spain, for example, as the Algerian market was shut off. Indeed, it must have been satisfying for state-producer and market leader GICA to announce that it was exporting cement to Europe in 2018!

Notably the local market has no cement grinding plants, yet this too has started to change. In May 2019 Algematco Steel ordered a modular Ready2Grind MVR vertical roller mill from Germany’s Gebr. Pfeiffer. Target markets for the exports identified by the Ministry of Industry and Mining included neighbouring Mali, Libya, Mauritania and Niger. However, only two of these countries are accessible by sea. Unfortunately, Libya’s resurgence in violence since April 2019 is unlikely to help the export market. The other countries share land borders with Algeria but no rail links. An overland export operation to Niger from a plant near Adrar was reported in early 2019 but feasibility on a large scale seems unlikely given the distances involved.

LafargeHolcim said in its 2018 financial report that its net sales were down in its Middle East and African region due to price pressure and lower volumes in oversupplied markets, particularly in Algeria, Iraq and Jordan. Bloomberg reported in February 2019 that LafargeHolcim was considering divesting assets in the region. However, LafargeHolcim’s exit from Southeast Asia may have since bought it some financial breathing room.

With Algeria facing a production capacity gap of at least 10Mt/yr it seems likely that foreign-backed producers like LafargeHolcim will suffer despite potential in the local economy. Nationally, the race is on to see if the industry can bring its cement to the sea and find new export markets.

Algeria/Iraq: Dal Machinery & Design (DMD), part of Turkey’s Dal Engineering Group, has been awarded a contract to supply a kiln shell to LafargeHolcim Algeria’s Oggaz cement plant. The shell has an internal diameter of 5mm. The shell will be manufactured from a single part, with one single welding in the axial direction. It is expected to be delivered by September 2019. No value for the order has been disclosed.

Other recent orders for DMD include the supply of two kiln shells for LafargeHolcim’s Bazian cement plant at Sulaimani in the Kurdistan region of Iraq. The kiln shells were manufactured with a diameter of 5.2m. Delivery was made at the beginning of March 2019. DMD’s other kiln shell clients in Iraq included the Gasin cement plant in 2018. It also supplied a mill tunnion to LafargeHolcim’s Kerbala cement plant.

Algeria: LafargeHolcim Algeria’s Oggaz cement plant has been awarded ISO 14001:2015 certification for environmental management, according to the El Watan newspaper. The plant has a total cement production capcaity of 3.8Mt/yr, comprising 3.2Mt/yr of gray cement and 0.6Mt/yr of white cement. The unit also has a waste treatment facility.

Algeria: LafargeHolcim Algeria has made two new export shipments from the Port of Oran. The first was a consignment of 15,000t of bulk grey cement from its Oggaz cement plant to West Africa, according to the El Moudjahid newspaper. The second was a dual consignment of 5000t of white clinker and 25,000t of grey clinker from the same plant to Cameroon. The cement producer said that the white clinker export was the first of its kind from Algeria.

Algeria: Ciment Lafarge Souakri (CILAS) has started exporting a consignment of 30,000t of cement to Cameroon. The operation was handled via the port of Annaba, according to Radio Algeria. It is the cement producer’s sixth large-scale export operation to another Africa country. The subsidiary of LafargeHolcim is using Lafarge Trading to supply logistical support.

Algeria: LafargeHolcim Algeria has exported 10,000t of white cement to South Africa via the port of Oran to Cape Town. The consignment consists of its ‘Super White’ product from its Oggaz plant, according to the Algeria Press Service. The local subsidiary of LafargeHoclim operates two cement plants, at M’Sila and Oggaz respectively, and it runs a third plant at Biskra as a joint venture with Souakri Cilas Group.

Algeria: Hafid Aouchiche, the import and export head at LafargeHolcim Algeria, has called for improvements to how the country manages its exports of cement and clinker. At a logistics symposium he emphasised the importance of better storage and loading infrastructure at ports, according to the El Moudjahid newspaper. He also noted the higher rates at Algerian ports for exporting clinker compared to ports in other countries. The cement producer has exported nearly 0.35Mt of cement and clinker so far in 2018.

Algeria: LafargeHolcim Algeria has exported 40,000t of clinker from the port of Oran. This is the company’s first export of clinker, following exports of cement carried out earlier in the year, according to the Algeria Press Service. The subsidiary of LafargeHolcim operates two cement plants in the country and it holds stakes in two others.

Algeria: LafargeHolcim Algeria has conducted its fourth cement export operation to West Africa. Nearly 8500t of Ordinary Portland Cement were despatched from the port of Arzew in Oran, according to the Algeria Press Service. It follows previous batches in December 2017, March 2018 and the start of April 2018.

The subsidiary of LafargeHolcim aims to increase its cement and clinker exports to West Africa to 5Mt by 2020. In Algeria the company runs two cement plants at M'Sila and Oggaz in Mascara. It also operates a plant at Biskra as a joint-venture with Souakri Group and it manages SCMI’s Meftah's plant in a partnership.

Algeria: LafargeHolcim Algeria has continued exporting cement to The Gambia with a third consignment from its d'Oggaz plant. The 30,000t order of Ordinary Portland Cement was exported from the Port of Arzew to Banjul, according to the El Moudjahid newspaper. The deal follows two previous ones in December 2017 and March 2018.