The Tunisian government has signalled its support for the restructuring of Ciments de Bizerte, although details of the proposed rescue plan remain limited.
At a cabinet meeting held on 17 March and chaired by Prime Minister Sara Zaafrani Zenzri, discussions focused on reviving the state-controlled cement producer, which has faced prolonged operational and financial difficulties. The company is regarded as one of Tunisia’s historic cement producers and a key part of the country’s industrial base.
According to an official statement, the restructuring programme will be implemented in phases, beginning with the restart of clinker production and tighter cost control measures aimed at reducing reliance on external services. A second phase is expected to focus on increasing production capacity through equipment modernisation and operational improvements, while a longer-term phase will target energy efficiency, environmental compliance and competitiveness.
However, the government has not disclosed how the restructuring will be financed, nor whether it will involve capital injections, debt restructuring or broader organisational changes. The lack of financial clarity has raised questions given the company’s status as a listed entity.
In the short term, authorities have recommended continued clinker procurement and processing to maintain market supply, alongside cost-control measures. Additional proposals include improving rail logistics, expanding bulk cement usage, establishing a sales subsidiary in Tunis and strengthening the company’s presence in regional markets.
Ciments de Bizerte remains in a fragile financial position. According to its latest interim results, turnover fell to around TND18.6m (US$6.32m), reflecting weak production levels and subdued demand. Financial charges of more than TND5m continue to weigh heavily on profitability, while liquidity is constrained by significant bank debt.
Tunisia’s cement sector comprises nine producers with a combined capacity of approximately 12Mta, employing more than 4000 people. Within this context, Ciments de Bizerte has struggled to compete, with its share price falling sharply since its listing in 2009 to below TND1, giving it a market capitalisation of around TND21m.
Founded in 1950 and nationalised in 1959, the company remains majority state-owned, with the government holding nearly 80 per cent of its capital. The success of the restructuring programme is likely to depend on securing sufficient funding and restoring sustainable production levels in the medium term.
