The cement industry is seen in Tunisia as a driving force in manufacturing. In fact, Tunisia's cement companies are meeting the growing market demand and exporting larger quantities to neighboring Libya and Algeria. Despite the decline in the country's economic growth since the outbreak of the revolution in 2011, the demand for cement has continued to grow, thanks to the increase in private consumption and the domestic market.
Cement production has increased by about 3% per year since 2007 (except 2011).
Tunisia's cement industry dates back to 1936, when a cement factory called C. A. T. Today, there are nine cement plants in the country: one produces white cement and the rest produce Portland cement (gray). At present, Carthage Cement has the largest sales volume, which was put into production in 2013.
In 2014, Tunisia's total annual cement production capacity was 13.5 million tons. After the completion of the project under construction, the total cement production capacity will jump to 16 million tons per year. If the economic situation and political environment are favorable, more cement plants will be planned to meet the growth of cement demand at home and abroad.
The national cement industry consists of three listed companies (with a total annual production capacity of more than 5 million tons) and six private companies, owned by multinational groups Prasa and Cimpor, whose factories are located in places where raw materials are abundant or close to the market.
In 1998, the State adopted a policy of withdrawal from competition and restructuring of the national economy. The policy has attracted considerable interest from investors who are grateful for the favourable local business climate (legal framework: fiscal and non-fiscal advantages), cheap labour costs and abundant coal cinder resources.
Cement production has increased by about 3% per year since 2007 (except in 2011). Therefore, the supply of domestic market demand is sufficient. Exports have also increased. Exports in 2014, for example, were about 1.26 million tons (Portland cement), up 118% from 580,000 tons in 2013.
However, due to the requirement of the Tunisian government to give priority to the domestic market and the efforts of producers to maintain their domestic market share, cement exports fluctuated greatly. In addition, preliminary licences for cement exports will be abolished by October 2014.
Since January 2014, the state control on the price of cement has been abolished .
Until the end of 2013, the state controlled the price of cement. The price of cement is fixed, and enterprises sell it at a unified price according to the type of products, so there is no competition among enterprises.
However, in January 2014, the state decided to stop energy subsidies and, at the same time, eliminate cement price controls in line with the government's policy to liberalize the cement industry. At present, cement enterprises are trying to sell cement products at home and abroad, and the average price of cement is TND 150-170/ton (TND1 = US $0.52), which is one of the lowest prices in the Mediterranean region.
Recently, the government has decided to allow producers to sell cement directly to consumers to lower prices and stop speculation by dealers.
Cement enterprises respect the environment and make comprehensive use of energy
As we all know, the cement industry is a major energy consumer, consuming 11% of the national electricity consumption and 1/3 of industrial energy consumption. Energy costs account for about a third of the cost of producing a ton of cement. For this reason, cement plants invest in various resources and make rational use of energy. Some cement companies use natural gas to reduce costs and environmental pollution. There are also some cement companies that use petroleum coke or heavy oil under Tunisian environmental regulations.