Features Algerian cement production capacity to increase to over 46 million tons by 2025 amidst oversupply scenario 14 December, 2020 SHARE THIS ARTICLE Share Tweet Post Email LATEST Environment Heidelberg's Burglengenfeld plant invests EUR 230 million Major environmental shift at Burglengenfeld June 14, 2024 Markets & Competition Bamburi Cement extends loan to its subsidiary Cement giant provides significant funding to boost June 14, 2024 MOST READ Environment Holcim Philippines eyes recycling 10M tons of Holcim Philippines aims to recycle demolition wastes by June 07, 2024 Markets & Competition Holcim and Norman Foster Foundation unveil sustainable Sustainable homes will utilize Holcim's EcoPlanet June 12, 2024 Algerian cement production capacity to increase to over 46 million tons by 2025 amidst oversupply scenario Despite the current oversupply scenario befalling the Algerian cement industry, the sector is expected to see a further increase of capacity at a CAGR of 1.8 percent by 2025, exceeding 46 million tons, reveals CW Research's 2020 update of the Algeria Cement Market Report. Cement demand in the country is estimated in 2020 at less than half the capacity, an unhelpful combination arising not only out of the slowdown in construction activities as consequence of the lockdown measures adopted to contain the pandemic but also because of the reduction in government investment due to the decline in global crude oil prices. However, several infrastructure projects are scheduled to be implemented by the Algerian government over the next five years with total investment exceeding USD 13 billion, revealing prospects for sustained growth in demand, especially boosted by oil and gas sector investments. The government is focused on taking advantage of not only the existing over capacity as well as the export infrastructure in place in many of the cement plants. Cement exports, including clinker, are expected to reach more than 6 million tons in 2025, as the government and cement producers make efforts to boost the trade and increase exports to Europe, the United States as well as existing trading partners in across Africa. "The ability of the Algerian government to finance these ambitious but necessary infrastructure projects is contingent upon a global economic recovery driving up the demand as well as the price for crude oil. The cost competitiveness of Algerian cement production will determine its ability to compete in a price sensitive trading market", observes Prashant Singh, CW Group's Associate Director. An industry that grows in an economy dominated by hydrocarbons The Algerian economy largely relies on oil, with the non-oil sector representing less than half of total GDP. The Algerian cement sector is an important constituent of the construction sector, and has been gaining momentum over the past few years as the government focuses on spending to spur infrastructure projects. Currently, there are twenty-five integrated cement plants in the country, operated by six cement companies, largely dominated by Groupe Industriel des Ciments dÔÇÖAlg├®rie (GICA) and LafargeHolcim, which account for over 50 percent and 28 percent of share in capacity, respectively. With the current oversupply and with cement makers focusing on exports, ex-works prices which have declined by 12 percent in 2019, compared to the previous year, are expected to remain stable this year. The Algeria Cement Market Report provides qualitative and in-depth market assessment and forecast of the country's cement industry, including cement volume trends in detail, trade flows, cement demand and production (historical and a five-year outlook), per capita consumption, and the competitive landscape. The report also comprises key players profiles, cement production facility details, including past and announced brownfield production increases and greenfield projects. Find out more about the report here. Sign in Don't have any account? Create one SHOW Forgot your username/ password? Log in Terms Of Service Privacy Policy This site is protected by reCAPTCHA and Terms of Service apply Sign in as: User Registration * Required field Sign In Information Personal Information Agree Yes No Terms of Service:You consent that we will collect the information you have provided us herein as well as subsequent use of our platform to render and personalize our services, send you newsletters and occasionally provide you with other information. * Fields marked with an asterisk (*) are required. Register SaveCookies user preferencesWe use cookies to ensure you to get the best experience on our website. If you decline the use of cookies, this website may not function as expected.Accept allDecline allCW GroupNewsAcceptDecline