The poor level of construction activity is leading to an increase in stockpiles at Syrian cement manufacturing companies.
The volume of Portland cement produced and sold by Syrian state-owned enterprises in the first half of 2016 increased compared with the same period of last year, although they remain well below pre-uprising levels.
Al-Badia Cement, a large cement manufacturing plant located near Damascus, has announced that it is resuming gradually its operations, weeks after its main factory was attacked by the Islamic State.
Syria’s cement production from state-owned companies was stable in the first quarter of this year as the Government is seeking to launch a new plant under the recently-adopted Public Private Partnership law.
The attack last week of two large industrial concerns near Damascus highlights the persistent lack of security for people and businesses in areas only a few kilometres away from the Syrian capital.
The size of Syria’s cement market is estimated to have declined by almost a third in 2015.
In 2015, the volume of cement produced by Syria’s public sector companies declined by around 20 percent on an annual basis, reflecting both lower demand in the market and production challenges.
In the first nine months of the year, the volume of cement produced by Syria’s state-owned plants declined by a fifth on an annual basis.
The production of Portland cement by Syria’s state-owned plants declined in the first half of this year, according to official data.
Cement production by plants owned by the state remained relatively stable last year.
The official price of cement sold by state entities has been increased by up to 40 percent following the recent hike in oil derivatives prices.
Some three months after it suspended production, Al-Badia Cement has announced that it has resumed operations.
Al-Badia Cement, one of Syria’s largest cement producers, reported rising losses last year, partly because of theft and other security related problems.
Al-Badia Cement, the Syrian subsidiary of Italcementi, said that its factory had stopped production because of security concerns.
Al-Badia Cement said that operations at its plant located outside Damascus have resumed after a suspension of several weeks.
Shares in Syria International Islamic Bank gained last week and attracted investors’ interest on the back of the removal of the company from the European Union sanctions list.
In 2013, demand for cement in Syria declined by 60 percent compared to its level prior to the uprising.
Al-Badia Cement, one of Syria’s leading cement manufacturers, has reported a decline in revenues and a steep rise in losses over unrealized foreign exchange costs.
Al-Badia Cement posted an increase in sales last year, its first full year of operations.
Syria’s state-owned cement manufacturing plants witnessed an annual decline of 25 percent in their sales last year.
Al-Badia Cement reported a decline in revenues in the third quarter of this year compared to the corresponding period of 2011.
State-owned cement plants produced 3.2 million tons in the first nine months of this year, according to the General Organization for Cement and Building Materials.
Syria’s state cement plants sold a total of 2.4 million tons in the first half of this year.
Syria has increased by 10 to 15 percent the price of cement sold by state-owned plants on the back of an increase in production costs.
Al-Badia Cement has announced that Tarek Ziad Al-Zaim had been selected to sit as Board member in replacement of Nizar Asaad who resigned in October.
Al-Badia Cement generated revenues of SYP 4.0 billion and posted a loss of SYP 669 million in 2011, its first year of operations.
The head of Syria’s cement manufacturing body said total output by Government-owned plants fell 10 percent last year, attributing the decline to competition from the private sector.
Syria’s state-owned cement plants produced a total of 3.87 million tons in the first nine months of this year, according to the entity in charge of the sector.
The main index of Syria’s stock exchange crossed the 900 mark again last week after two consecutive days of gains.
Al-Badia Cement has announced the resignation of Nizar Asaad from its Board of Directors.
The Syrian financial market regulator, the SCFMS, has accepted the decision of Al-Badia Cement to reduce the nominal value of its shares to SYP 100, from SYP 400 previously.
Al-Badia Cement, one of two private sector manufacturers of cement in Syria, announced a capital reduction while works on a second production line have been postponed.
Cemena, a subsidiary of Gulf Finance House, has announced that it had awarded the contract to build and equip a cement plant in eastern Syria with an annual capacity of 2 million tons to CBMI of China.
Wartsila will be operating and maintaining the 45MW power plant of Al-Badia Cement for three years, according to the Finnish company.
Al-Badia Cement (ABC) has announced that it would start production from its plant in Abou Shamat next month.
Altoun Group has withdrawn from the contract it had won earlier this year to invest in, and develop, a state-owned cement plant.
Lafarge Cement Syria, the Syrian affiliate of the French building materials company, Lafarge SA, plans to begin production at its cement plant in Aleppo in the middle of next year. The Syria Report talks to Bruno Pescheux, CEO, on the strategy and targets of his company.
The Syrian Cabinet has granted the two state companies active in the cement sector more freedom in their trading activity.
Syria's cement market stood at around 5.5 million tons in the first nine months of the year, according to data and estimates from state-owned institutions.
Al Badia Cement will begin production in the second half of 2010-early 2011, according to Matteo Rozzanigo, Middle East Development Manager at Ciments Français.
Shell Lubricants will enter the Syrian market after it signed a distributorship agreement with Al-Muhaidib Holding of Saudi Arabia.
Al Badia Cement’s Initial Public Offer was oversubscribed by 171 percent according to a press statement from the company.
Al Badia Cement is raising SYP 1.8 billion through an Initial Public Offer to be held between July 3rd and August 1st.