Central Asia. The Cement Industry of Turkmenistan
Due to a variety of reasons, Turkmenistan is considered a hard-to-work-in country. Business has hard times dealing with the local authorities and many bureaucratic issues are complicating things even more. The political system of the country is strictly against reformations and does not allow for a healthy market where the competition and pricing are the most important factors. The government fails to allocate the revenues from selling natural resources appropriately and does not publish any information about Turkmenistan’s economy. It is estimated that the GDP of the country is about $47 billion. The number has been growing steadily over the course of the last decade with the biggest jump being in 2014 when the GDP increased by 10.3%. While the GDP per capita is very high and estimated at $14.2 thousand, the vast majority of the population is undereducated and poor.
The Cement Industry of Turkmenistan
As of right now, the country has 4 fully operational cement manufacturing facilities with the overall capacity close to 4.65Mt per year. 2 facilities belong to the government corporation Turkmencement. 2 facilities belong to the Turkish company Polimeks. The latter has a rich assortment of products including Portland cement, oil well cement, and cement resistant to sulphates. The overall production of cement increased by nearly 12% in 2013. No further reliable data has been since published. As of 2013, the overall volume of production is estimated at 2.65Mt per year.
The country is more than attractive for some international corporation that may benefit from cheap labor force in the country. Japan recently announced that they are exploring opportunities to start a collaboration with Turkmenistan including a possibility of opening a new cement production facility. Obviously, the abundance of natural resources and fuels in Turkmenistan makes any industrial project in the country logistically sound.
In 2014, Turkmencement started a new cement facility in Koytendag. The plant has the installed capacity of 1Mt per year and an infrastructure dedicated to support its production cycle. This is the only cement manufacturing facility planned by the government within the new development program aimed at improving the construction material industry.
Note that Turkmenistan is the only country in Central Asia where foreign capital is nowhere to be seen. All new cement facilities are owned by the government.
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