Algeria Eyes Installing Clinker Grinders in Africa to Export 20 Million Tons of Cement Excess Annually
BY: Dr. Hana Saada
ALGIERS- Algeria’s burgeoning production capacities in cement and clinker have opened up promising prospects for non-hydrocarbon exports, in light of the increasing global demand for these materials.
In parallel with sectors vital to the national economy, such as steel, pharmaceuticals, leather, and textile industries, “the cement industry is a focal point for the Ministry of Industry to develop in 2024 (…) and accelerate,” stated the Minister of Industry, Ali Aoun, in an interview with Indjazat magazine. He disclosed that Algerian cement plants currently yield an excess production of 20 million tons per year. Hence, there is a need to implement measures conducive to exporting this product.
According to the minister, the surplus cement production prompted discussions within the ministry regarding the possibility of exporting it in the form of clinker. However, he noted that this might not be a viable solution as several African countries, which are potential buyers, lack the necessary grinding facilities. This situation could negatively impact the country’s export volumes to the African continent, which presents a highly favorable market for Algeria’s foreign trade.
GICA’s Role
To address this challenge, the ministry is contemplating measures to assist African countries in sourcing Algerian cement, with solutions proposed by national enterprises. “This is why I asked the state-owned group GICA to conduct a study, currently underway, targeting countries where grinder installations are feasible,” stated the Minister of Industry, emphasizing that these African nations prefer purchasing cement rather than clinker.
Aoun affirmed that this approach “will enable Algeria to increase cement exports in the future.” Construction materials have represented Algeria’s most significant non-hydrocarbon exports in recent years, with cement ranking second after rebar, positioning Algeria as the 14th largest exporter of this product globally. According to Ministry of Commerce statistics, cement is exported to around sixty countries, including about twenty African nations.
The Algerian Cement Industry Group (GICA) exported 6 million tons of clinker in 2023, generating an estimated turnover of 24 billion Algerian dinars. This state-owned group successfully entered several African markets and expanded into Latin America and Europe, partly due to obtaining conformity certificates to European standards (CE), enabling its growth even in the highly regulated European market.
Holcim El Djazaïr
In addition to the public cement group, Holcim El Djazaïr recently announced a remarkable performance in exports for 2023, with a volume of 3.4 million tons exported during the period for both cement and clinker, accounting for 30% of Algeria’s total exports in this segment.
These exports represent a 7% increase from 2022 (3.2 million tons) and a 17% increase in the company’s revenue. In 2023, 40% of its exports were cement, marking a 300% increase from 2022. This proportion is expected to further increase to over 60% in 2024, supported by significant investments, including the acquisition of a ship loader in 2023, costing the company 3.5 million euros. This achievement was made possible by various non-hydrocarbon export promotion measures undertaken by the government.
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