Lafarge Jordan confirms shutdown of clinker lines

Markets & Competition

Lafarge Jordan confirms shutdown of clinker lines

14 December, 2020

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Jordan based plant had operated at limited capacity in the past months, due to higher energy costs, increased competition. [$]

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Nashwa Khalidi - confirmed the company Lafarge Cement Jordan stopped all production lines in factory Rashadiyeh for work since mid-November, the past and even now, without the existence of plans to re-run through this January, while considered the companys fate of the factory is not clear after that date.
The charge of communication and media company Hana vintage was written to stop production at the factory Rashadiyeh in the middle of last November, with no plans to re-run during the current month as well.
She stressed that the most important reasons for declining production at the factory Rashadiyeh and then stop completely, the effects of the cement plants operating in the Kingdom to import clinker (basic material for manufacturing cement) from abroad, including the factory setting competition is fair reflected damage and clear in a factory Rashadiyeh since October the second last and led to the stop work completely at the plant since then.
And details of the stop work in the factory made it clear that the first line in the factory was run by 30% of the total operational capacity throughout the year 2010, and second-line stops working completely not running since May of 2010, therefore, the operational capacity of the plant Rashadiyeh for the year 2010 did not exceed 31% of the total operational capacity is a very small percentage can not go out.
The competition is described by the non-fair dating back to allow the importation of clinker a substance essential for the manufacture of cement from foreign countries cost of energy used in production have supported, for high energy costs in the production process in the companys factories locally and which is now acquires the proportions of a very high total cost of production Given the fuel prices and cost escalation.
According to the obsolete, the cost of energy in the manufacture of clinker from countries that are imported article, including Jordan, which supports the energy used in production, amounting to $ 25 / per ton clinker while the cost of our energy in our plants $ 500 / per ton clinker This illustrates the vast difference in cost production between the parties and thus the lack of fair competition.
And increased the difficulty of that chapter now return Rashadiyeh factory to work, arguing that the lack of clarity surrounding the future of the factory until now.
They noted that the old factory Rashadiyeh includes 400 employees opportunities to work directly in addition to 160 agent-based contracts, noting that all these staff and labor from the local community in the area of the plant.

Markets & Competition