Turkish cement producers eye growth in Syria amid hurdles: association vice chairman

The Syrian market presents a significant opportunity for Turkish cement producers, but the country's transition to stability will take time, Abdulhamit Akcay, vice chairman of Turkish Cement, told S&P Global Commodity Insights.

"There is an opportunity. The Syrian market has been an important market for Turkish cement producers in the last decade despite the war," Akcay said. "After the recent political developments and the regime change, there is great potential, but it is not something that will happen immediately."

Turkish Cement is a semi-governmental association representing cement producers and exporters in Turkey.

Turkish producers have supplied more than 1 million mt/year to Syria via land transportation despite the turmoil in the country.

The reconstruction needs in Syria are immense, with an estimated 2 million apartments destroyed and infrastructure severely damaged. This necessitates substantial international financial support, which will be crucial for the rebuilding process. The Syrian market is projected to require around 60 million mt of cement over the next decade, translating into annual demand of approximately 6 million mt. Turkey is expected to be a primary supplier, but logistical challenges, such as the status of Syrian ports, need to be addressed to facilitate sea transport.

"Our rough estimates are that Syria will need around 60 million mt of cement in the next decade so nearly 6 million mt of supply and demand on a yearly basis and Turkey will play the main role in carrying this consumption," Akcay said. "But you cannot move this volume by trucks, so we need sea transport. The status of ports in Syria is not clear and questionable, so ports will need to be operational during the reconstruction period."

While the opportunity in Syria is promising, Turkish producers also face domestic challenges, particularly in rebuilding earthquake-affected areas. This dual demand could strain resources and labor, potentially pushing up construction costs in Turkey. Nonetheless, Turkish producers are confident in their capacity to meet the growing demands of both markets, provided that Syria's political and economic stability is achieved," Akcay said. The next 20 years could see significant growth in Syria, contingent on these factors, he said.