2014 Togo Cement Market Report Update: Leading regional clinker exporter expands by double digits

CW Group, a leading global advisory, research and business intelligence boutique with a recognized expertise and thought-leadership in the global cement sector, announces the availability of its 2014 Togo Cement Market Report Update as a part of its global cement market research report series. Structured as a decision-support tool for industry executives and investors, the report provides a detailed analysis of the cement market in Togo through 2017.

 

The economic performance of Togo has been relatively stable in recent years, with GDP expanding 5.5 percent in 2013, while forecasts for the following years are favorable thanks to reforms and investments. The construction industry is one of the most dynamic sectors of the country's economy recently, following the Togolese government's commitment to developing infrastructure in order to rapidly accelerate economic growth, with projects such as the third terminal at Lome deep-sea port, capacity increase at existing Lome Airport, and several roads under construction or rehabilitation.

One of the few countries in West Africa with large deposits of high quality limestone for the production of clinker, Togo's cement industry has gained an important role in defining the regional cement market. The country's integrated cement and clinker production serves in a key role as a domestic cement supply as well as an exporter of clinker throughout the region.

The cement market in Togo is concentrated, the three production units being either fully or jointly owned by two major groups, HeidelbergCement (through its subsidiary Ciments du Togo, or CimTogo), and West African Cement (WACEM). The largest grinding unit is operated by HeidelbergCement, while WACEM has the sole Togolese clinker production unit. The two companies jointly own the second Togolese grinding unit, Fortia Cement. With robust demand the industry operates its cement and clinker facilities at high utilization rates, frequently well above 90 percent, with pressure on internal production facilities expected to remain at relatively high levels over the next years.

In terms of capacity additions, there are two plants under construction, one grinding unit of CimTogo North and one clinker unit of ScanTogo Mines, both scheduled to be commissioned in 2015. Once the cement capacity jumps in 2015, the growth in domestic consumption will be better sustained. Moreover, the anticipated decline in cement exports, although not necessarily desired by the Togolese companies, will signify increased domestic supply.

Overall, the Togolese cement market will see notable changes in the next few years as both demand expands as well as new cement production capacity comes online. As the cement markets more broadly change in West Africa with new players defining a new competitive environment, Togo will find itself facing new challenges and opportunities.

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For an interview with the analyst, please contact Raluca Neagu, Market Services & Marketing Consultant at the CW Group at either rn@cwgrp.com or +40741-520-372. For more information and a complete table of contents please visit the CW Research website at http://research.cwgrp.com in the Sector Reports section - http://research.cwgrp.com/products.