The IFC said it will make an equity investment of up to US$24m in cement maker ASEC Algeria to support the construction of a cement plant that will create more than 1,000 jobs and help meet Algeria’s growing demand for high-quality building material.
The cement plant will be built in Djelfa, one of Algeria’s least developed regions, where it will support local small and medium enterprises in the transport, maintenance, and general services sectors. The project is expected to create 600 direct and 800 indirect jobs.
Algeria’s government is targeting infrastructure and housing development to diversify the economy and improve services and the IFC said that the future Djelfa plant will help meet current and future demand for cement created by projects in these sectors.
The plant is expected to have an annual production capacity of 3.1Mt. The total cost of the project is expected to be about US$550m.
ASEC Cement, the owner of ASEC Algeria, invests in emerging cement markets in the Middle East and North Africa and was created by Citadel Capital, a long term partner of IFC.