Lafarge Algérie plans huge investment in Algeria over next two years

725 Lafarge Algérie is planning to invest nearly US$450 million in Algeria over the next two years, according to its PR Manager Serge Dubois. The group will notably seek to develop its activity as a provider of solutions, such as its involvement in the project to construct a 280mminaret for the Algiers mosque. White concrete is a key part of the firm's $447.78 million development plan, with the firm said to be capitalising on its lower production cost, improved performance and longer lifespan. The company currently produces 1.5 million m³ of concrete/year, and aims to increase this to 3 million m³/year by 2018.

Meanwhile, Algerian Prime Minister Abdelmalek Sellal has stated that new cement production sites will be built in order to respond to growing demand for cement in the country. The proposed cement works will be operated by Groupe Industriel des Ciments d'Algérie (GICA) and will be located in the provinces of El Bayadh (with an annual capacity of 1 million tonnes), Oum El Bouaghi (2 million tonnes) and Bechar (1 million tonnes), while existing sites in Chlef and Ain Kbira will be expanded to increase their capacity by 4 million tonnes. GICA's total production capacity is set to increase to 20 million tonnes/year by 2018, up from 11.5 million tonnes/year at present.

Of the ending of subsidies of cement deliveries to southern Algeria, Sellal said that the system has been replaced with a GICA internal fund, which will be funded by a DZD 10 (US$ 0.09) surcharge on a 50kg bag of cement. Domestic cement production will also be boosted by private cement projects, include two projects in the provinces of M'sila and Mascara, which will have a combined production capacity of 8 million tonnes/year. Other private projects are planned in Biskra (6.7 million tonnes for two cement works) and in Laghouat and Adrar (2.2 million tonnes each).