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News Lafarge limps forward in Algeria

Lafarge limps forward in Algeria

Written by Global Cement staff 01 December 2011
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Algeria: Lafarge has agreed to undertake a project inherited from an acquisition of an Egyptian firm in 2007 according to an Algerian minister of state.

Responding to a parliamentary question in mid-November 2011, the Algerian Industry and Investment Promotion Minister, Mohammed Benmeradi, said that Lafarge had agreed to undertake the project as a minority partner, owning 49%, in accordance with a foreign ownership law passed in 2009. Lafarge originally inherited the project as part of its acquisition of the global cement interests of Egypt's Orascom Construction Industries (OCI). OCI had secured licences for a new plant at Oum El Bouaghi, in the east of the country, shortly before the Lafarge takeover was announced.

Benmeradi said that the Oum El Bouaghi project would cost US$500m and would take 12-16 months to complete. He said that Algeria is currently self-sufficient in cement, producing 17Mt/yr, of which 5.5Mt/yr comes from privately owned plants. The government has a huge capital spending programme, which points to a steady increase in demand for cement. Most of the state-owned plants are in a poor state of repair.

Last modified on 30 November 2011
Published in Global Cement News
Tagged under
  • Lafarge
  • Plant
  • Licence
  • Algeria

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