Cemos Advances Industrial Growth in Morocco
The British cement manufacturer Cemos is strategically positioning itself within Morocco's industrial landscape. Their Tarfaya facility has recently commenced the production of clinker, a key ingredient in cement manufacturing, which was previously sourced from external suppliers. This shift signifies a major milestone in the company's operations, as it aims to enhance production efficiency and reduce costs. Furthermore, Cemos is in the process of constructing a second cement plant in Errachidia, projected to double its production capacity by 2027. Alongside these developments, Cemos is also considering a public offering for its Moroccan subsidiary on the Casablanca Stock Exchange, potentially targeting a timeline between 2027 and 2028, as highlighted by barlamane.com.
Production Stability and Future Growth Plans
In the first half of 2026, Cemos reported sales of approximately 90,000 tons of cement, with expectations to maintain overall sales figures near 200,000 tons, consistent with 2025 figures and slightly below 209,000 tons in 2024. While these sales figures indicate stability, they mask a deeper transformation within the company's industrial economics. The primary focus is on reducing the cost of production at the Tarfaya facility before significantly increasing output with the commissioning of the new Errachidia site. The compact calcination unit, which became operational in October 2025, is currently running at about 90% capacity, producing clinker that meets the requirements for cement manufacturing. This is crucial, as clinker constitutes nearly 70% of cement production costs. Previously reliant on external suppliers, Cemos aims to mitigate the risks associated with fluctuating market prices and availability by producing clinker in-house.
Moreover, the production of clinker at the Moroccan site is expected to curtail external purchases and enhance cost control, thereby supporting profit margins even prior to the anticipated increase in production volumes. Cemos is also planning to incorporate more natural cementitious materials, such as pozzolana, to lower the clinker requirements for certain cement qualities, further reducing production costs.
The Errachidia project represents the next phase of Cemos' growth strategy, with the construction of a new grinding unit already underway. Foundations for this facility have been completed, and it is scheduled to commence operations by mid-2027. The group purchased this line in 2022 and selected Errachidia as the site for its establishment two years later. The installation of equipment and subsequent industrial testing will follow the completion of civil engineering works, paving the way for production to begin.
With the new cement plant, Cemos anticipates being able to double its capacity starting in 2027, broadening its geographical reach beyond Tarfaya and into other southern markets in Morocco. These two investments, while distinct in nature, are intricately linked: the calcination unit will reduce dependence on externally sourced clinker, while the Errachidia facility will significantly increase production volumes, elevating the company's industrial scale from its current annual sales of approximately 200,000 tons.
As Cemos embarks on this pivotal phase, it enters with a profitable operation, although growth in tonnage has yet to take off. Following a decline of around 4% in 2025, its earnings before interest, taxes, depreciation, and amortization (EBITDA) have remained stable at around nine million euros, similar to the previous year. This underscores the importance of cost reduction as a primary lever for growth in 2026, before the new capacities come online.
Additionally, Baker Steel, which holds 50.13 million shares of Cemos, representing 30.4% of the capital, has valued its stake at 30 million pounds as of June 30, down from 33.5 million six months earlier. This decline is attributed to a reduction in valuation multiples observed among comparable Moroccan cement producers rather than any deterioration in Cemos' operational performance. In this context, the group continues to explore the possibility of launching its Moroccan subsidiary on the Casablanca Stock Exchange, with no fixed timeline, valuation, or share of capital specified for the market yet. This potential move is expected to take place after the completion of the current industrial program, whereby Cemos would operate its own clinker production at Tarfaya and a second grinding capacity at Errachidia.
