Although North Africa does not at first
sight offer the best prospects as a centre of papermaking, given its crucial
lack of water and fibre resources, the region is showing strong signs of
development in some paper grades, including tissue, writes Omar Chabane
With the opening of the present millennium, Tunisia and Algeria have been
the focus of investment in new paper production capacity, while Morocco has
remained stable, undertaking occasional rebuilds. The main investment so far
has been Tonic Emballage's new 28,000 ton/yr Metso machine, the biggest in
Algeria, in December 2005. In 2002, Tunisia's Tunisie Ouate also added that
country's largest machine, a 15,000 ton/yr unit from PMT Italia. Both machines
are a dimension ahead of others operating in the region. Total investment for
the two machines is estimated at $56 million, though this has not been officially
confirmed.
Tissue has benefited from several factors, notably new technology for secondary
fibres, the lifting of Algeria's state monopoly law on foreign trade in Algeria,
and the development of new consumer markets as a result of the free flow of
goods and reduced tariffs following the Association Agreement with the European
Union.
HISTORICAL BACKGROUND
Tissue production first came to the region in 1973 with the start-up of a
a 5000 ton/yr machine running on 100 % virgin pulp in Algeria, near the Tunisian
border. Building it was more political than economic. Algeria had won its independence
in 1962 after a bitter seven-year war and the project was part of the 1970
four-year plan to bring employment to Souk Ahras. Alongside this 5000 ton tissue
machine were a second paper machine and a converting plant.
The machine closed down in 2007 as a consequence of the new openmarket policy
and the company has been liquidated. Previously the mill had been protected
by state monopoly, which helped it survive despite shortcomings arising from
its original choice of site, far from the main markets, the use of costly virgin
raw material and total lack of investment. Now, the three Maghreb countries
run at least 11 machines installed since the 1980s, seven of them this century.
Algeria has five, Morocco two (in Meknès) and Tunisia four (see Table).
Algeria is the largest of the region's producers, with 33,000 tons/yr excluding
the closed mill. Its investments in the sector are fresh. They date from 2005
and the beginning of this year. The operating rate is still low for numerous
reasons, however.
Tunisia, with 28,000 tons/yr, is in second place by capacity but its machines
- all installed since 2002 - are operating more efficiently than Algeria's,
while its marketing management appears to operate efficiently. Morocco has
one producer with capacity of 16,000 tons/yr. There are no new investments
in the sector; rather Morocco's industry is focusing on improvements in internal
management, better efficiency and modest rebuilds.
Thus regional capacity totals 77,000 tons. At first sight the figures are
not striking and instead look rather modest. However to assess the move one
must bear in mind that no less than 53, 000 tons of new capacity has been installed
in tissue in the region over the last six years only, ie more than 60 % of
the total and about 15% of the total capacity for the whole of Africa.
TISSUE CONVERTING
Tissue converting activity, according to recent estimation involves 20 main
companies in Algeria, six in Morocco and a further 20 in Tunisia. They use
both local and imported semi-converted tissue.
Most of the tissue producers in the region limit themselves to production
of tissue reels, leaving converting to others. However, in Algeria Tonic has
been present in both since 2006, as part of its tissue output is processed
on its six converting lines (Fabio Perini) in its converting unit adjacent
to the mill. The rest is sold in rolls to converters.
Production is 30 % for domestic use, 70 % for outside converters. Rolls are
sold according to customers' requirements in widths of 300, 1320, 280, 275
mms.
Imports are estimated at about 5000 tons/yr each in Algeria and Morocco.
CONSUMPTION
With an overall population of 80 million, per capita consumption remains
low. According to the General Director of SIPAT, consumption is barely 0.3
kg in Morocco. It is about the same in Algeria, rising to 1.5 kg in Tunisia.
According to the same source, there is a need to revise the agreement allowing
free access to the region's markets from the Arab free trade zone. Failure
to do so will be detrimental to local production and consumption will be mainly
fuelled by imports.
The same senior executive is very pessimistic concerning competition from
the free trade agreement with Europe.
Despite this bleak outlook, the future for tissue paper is not desperate.
The main plusses are: large and growing population; well-trained and skilled
labour; increasing customer base; high potential for recycling, the trend ot
use toilet tissue instead of the traditional water, and rising living standards.
The main challenges for the industry include:
- Water supply: efforts are called for to reduce its cost and consumption
level per ton produced through better recycling technical processes.
- Energy, a major part of the cost structure. Algeria has abundant gas energy
but Tunisia and Morocco both use either expensive fuel or imported
gas.
- Raw materials. The aim is to boost the use of recycled paper in the furnish.
The industry is promoting the establishment of collections in order
to boost tonnage and also calling for better sorting of wastepaper. However,
a lot remains to be done.
In conclusion, one can say that, despite constraints due to the financial
crunch and a gloomy international environment, the tissue paper segment
in North Africa seems not to be affected so far. Instead it appears to
be prospering in terms of both investment and trade. TW
