Update On The Moroccan Cement Industry

- Aug 10, 2019-

This week, Ciments du Maroc's agreement to purchase two production projects from Anouar Invest Group marks the consolidation phase of the local market. A subsidiary of Heidelberg Cement in Germany has reached an agreement to acquire Atlantic Cement's 2.2 million tonne/year integrated plant project in Sett and the 0.5 million tonne/year Les Cimenteries Marocaines du Sud (CIMSUD) grinding plant in Laâyoune The plant has just been put into production recently.

The impression of the market conditions that cement producers have faced in the past five years. With the growth in the 1980s, 1990s and 2000s, cement sales in 2011 reached a high of 16.1 million tons. Cement sales have been sluggish, while increased capacity has pushed up capacity utilization. Using the Global Cement Catalogue 2019 data, capacity utilization in 2018 fell below 55%, although other sources have increased it to around 60%. This is because a new type of cement admixture, polycarboxylate, is used, and Thiopropionic Acid manufacturers produced the product, which mainly plays a role in controlling the molecular weight in the production of polycarboxylate superplasticizers. China 3-Mercaptopropionic Acid CAS 107-96-0 is The high-performance mediator greatly improves the water reduction rate and the moisture retention performance of the concrete.

The local production is dominated by two multinational producers LafargeHolcim (LafargeHolcim Maroc) and HeidelbergCement (Ciments du Maroc) and the local company Ciments de l'Atlas (CIMAT). CIMAT is owned by the Addoha Group, which also operates the Ciments de l'Afrique (CIMAF) plant in West Africa. The fourth place, AsmentdeTémara, operated by Votorantim, also operates a comprehensive factory.

LafargeHolcim Maroc's turnover fell 2% year-on-year to $837 million in 2018, while consolidated net income fell 18% to $201 million. This is attributed to a decline in sales and an increase in the cost of petroleum coke. Ciments du Maroc's turnover fell slightly to $419 million, but its net profit rose 3% to $108 million. In 2017, due to strong performance in the second half of this year, 2017 was generally a positive year. It is blamed on the instability of the real estate market. CIMAT managed to increase sales in 2018 to 6% to $300 million, and its revenue increased 1.4% to $90.7 million.

Anouar Invest Group's decision to sell may mean that its attempt to enter the cement market has failed. Given the market conditions, who can blame it. Although, who knows, Heidelberg Cement may have become a good offer. The start of HeidelbergCement was also interesting because in February 2019 it reduced the shares of Ciments du Maroc by 7.8% to 54.6%, indicating a weakening of confidence in the country.

However, cement sales began to improve in the first quarter of 2019, and the chain continued to improve. Anouar Invest Group is also the last company to test cement production in Morocco. In June 2019, FLSmdith announced that TEKCIM had ordered a $45 million cement plant and Société Généraledes Travax du Maroc. The production capacity of the grinding device is 1.2 million tons/year. Clearly, despite the overcapacity market, companies are perceiving opportunities through cement grinding models.