IDEP/Eï/2340

Page

65.

INTEGRATION INDUSTRIES

1. Paper Industry

The proper size of a mechanical paste production unit is to produce

from

20-30,000

tons. This needs from

60,000

to

90,000

tons of gum, or

a forest of about

60,000

to

80,000

hectares. It has been

found

that

Beni Emloul Forest in Oras

(Algeria)

^{is the only} forest which can supply

the _necessary inputs for the industry. It is possible then to start a mechanical paste production unit with a capacity of

20-25,000

tons ^a

year and an integrated unit to make paper for newsprinting.

(1)

Another input of the paper industry is Alfa. The annual production

of Alfa in the Maghreb is estimated at 450,000 tons of which Tunisia

produces 100,000 tons, Algeria 25,000 tons, Morocco from

100-150,000

tons.

To avoid the export difficulties, and use this raw material in the

industrialization _process in the Maghreb, it has to be produced locally.

In Tunisia, the Kasrain factory produces about

25,000

tons of Alfa paste

(2).

It will increase its production to 40,000 tons. For Algeria

and Morocco there are two possibilities ; the production of paste suit¬

able for manufacturing paper

(40$) (3)

the size of production here would

be 100,000 tons. The second is to produce another kind of so michemical paste with higher productivity

(70$). (4)

With the alfa fibres available in Algeria and Morocco one may suggest

a factory to produce 100,000 tons a year of chemical paste to provide

the necessary paste for the paper factories in the Maghreb countries as well as for export. Another factory with a capacity of 150,000 tons

of semi-chemical paste can be also established.

(5)

(ï)

^This unit would import

5~6,000

tons of chemical paste every year.

(2) 65,000

tons of fibres

(3/

2.5 tons of fibres produces 1 ton of paste.

(4)

1.4 tons of fibres produce 1 ton of paste.

(5)

^The Morocean Company "Cellulose Maroc" would be a purchaser of that kind of paste.

2. Iron and Steel Industry

(ï)

There are two steel factories producing the long steel products, one in Menzel Borguiha in Tunisia with a capacity of 100,000 tons

( )

^{and a}

factory

(laminoir)

ⁱⁿ Algeria with 30,000 tons capacity. This total capacity of about 130,000 tons provides only

^Oj0

of the

Maghreh

needs.

These two factories can be expanded to cover the whole demand and e

joint coordinated ,.policy ^can create specialization between them.

Algeria will establish ^a steel factory at Annaba to produce flat products. The

^project ,cpip;prises,.two, .high; fYirna-eesi witheai. capacity of

about 900,000 tons to 1 million tons,a^xfPbtbry-droi tu?oduce

(steel

by

oxygen, with a, -capacity of. 1 million 'tDnsy^àhS.

a-iaéiandir-''fa^cAory ( ') (

underlie at ing

)

with.aL capacity' bebwee'h

5^yÒ00 tonb^'ahd'1! million

tons.

This-■capacity w.ould i£&Er*pass-'the-

lb

cal Maghreb

àeífânÍL

so

it'"

^{can cater}

.Shusq

lo

bnxá f.erlf

for both the Maghreb and for export.

So far as the production of pipes is concerned, there is a modern

unit

(the

Sotubral

Company)

in Algeria

(one

of the units of the National Company fir "Foulath"

(steel).

This unit can supply all the Maghreb

needs from all kinds of small welded pipes whose diameters range from 1.5 to 6 c.m. Hence thex^e is no need for the units which Tunisia and Morocco are thinking to establish, as these investments would constitute

an excess capacity for the Maghreb as a whole.

Another factory

(Altumec)

in Algeria, is one of the units of the

National Company for

Foulath(Steel)

which produces pipes whose diameters

are from 22 cm. As its capacity cannot satisfy all the Maghreb needs,

f*

(ï)

The Maghreb needs in steel products were estimated about

480,000

tons of long and flat steel products and special steel, and it was projected to be about

560,000

tons for 1973.

(2)

It has a Laminoir factory with 70,000 tons capacity.

(3)

Special steel such as carbonic steel, steel for construction etc.

are not produced in the Maghreb. One medium sized unit with an electrical furnace of about 5 tons of iron, and with-a capacity

between 4-5,000 tons a year would be sufficient. It should be

established near one of the steel works

(A.D.A.

in Morocco, El

Marsa Kebir in Algeria, or Menzel Borguiba in

Tunisia).

IDEP/ET/2340.

Page 67,

it is suggested that it should specialize in producing the welded pipes

with a diameter "between 6 and 50 cm. The National Company for Poulath

in Algeria has "begun to "build a unit at Annaha to produce large pipes

with a diameter of 50 cm, or more,

1/

3. Intermediate goods and metal products

The production of the intermediate or semi-finished products is

decisive in the _process of economic development in the underdeveloped

economies. Those semi-finished products or detached pieces which con¬

form with the specifications of the client industry are of special' importance and should he carried on in the industrial development pro¬

gramme of the Maghreh countries. Integration can achieve a great economy in this field. These semi-finished products should he produced hy

factories other than the client industry as they can be costly to the latter. They can he distributed among the individual Maghreh countries

and hence each will have its share in the industrial development,

A few examples would throw some light on this important field of co-operation between the Maghreh countries;

The ahsorhtive capacity of the Maghreh market for steel wires

(pro¬

cesses without

heat)

and steel cables is estimated to reach about 30

million tons in 1973. There are three factories at present in the

Maghreh - one in Algeria and two in Morocco with a capacity of 2,000 tons

each. Hence there is room for a modern factory for these products to supply the whole of the Maghreh,

market with

^a

capacity of 25-30,000 tons

a year.

Another example is a factory at Sousse in Tunisia which produces hand tools, cutlery and household utensils, undertakes forging and stamping

and has a capacity sufficient to provide the whole Maghreh with ilsneeds—

•l/cPCM,

Giri Report,

op.cit.

^.

2/

There is a factory in Algeria producing aluminium household

utensils which can supply the Maghreh market needs.

A factory with a pressure machine.of

2,000

to

3,000 tons

for

producing big "emboutissage" pieces according to the client specifica¬

tions, sanitary "equipment" tools from stainless steel and automobile

wheels is also needed.

There is also a prospect of intermediate aluminium goods ; aluminium sheets

(latile),

fine aluminium leaves

(feuilles minces),

angles and machine wires. Alomaf factory in Algeria can be expanded

to cater for the Maghreb market for alumium sheets. The Moroccan factory

at Mohamadia can supply the area with wrapping papers made from Alumimium

fine leaves. There is no aluminium angles

(profile)

factory in the Maghreb, and it could be ^a subject of agreement between the Maghreb

countries. In Algeria the "Latref" factory for the "trefilage" of alu¬

minium wires can supply all the needs of the Maghreb.

J/

4. Metal, mechanical and engineering industries

The current development of

thi^-

^{sector in Morocco and} Algeria, its important potential in the Tunisian plans render coordination indis¬

pensable. Also both Algeria and Morocco possess very important rail¬

way rolling stock works, either of which has a capacity sufficient to

cover the'Maghreb needs. In this field cooperation is essential for ^a division of the _range of products or to make production complementary.

The concerted efforts of the Maghreb countries in this section which comprises a large variety of products

(engineering,

assembling,

etc.)

will allow a rapid development^• of this branch, by means of speciali¬

zation, the only way leading to large scale production in assembly industries, which lowers the cost price and improves the quality of products.

In this area, also, there is a great need to standarize the pro¬

ducts, Reduction of costs of production in this group of industries

is very substantial when the scale of output increases. The reasons for

_l/Latraf

unit for copper wires o an also supply the needs of the Maghreb

market. There is scope for a factory of non-finished taps, and taps

for sanitary equipment in the Maghreb.

2/See

the economies which can be achieved as a result of standardiza¬

tion.

E/CN/14 248

op.cit. p.52

IDEP/ET/2340

Page 69.

this are obvious s with larger output the cost of specific tools can be spread and fixed costs are lower. Also productivity increases as specialization of workers is possible only in large scale

operations.-^

In the field of motors with internal combustion, the CPOM report prepared by

Giri-^/suggested

^an agreement between four Maghreb countries

on:the Algerian factory for the production of 3'and 5 horsepower

mono-cylinders with benzine, the Tunisian company for 7 horsepower mono-cylinder diesel motors, and the Moroccan factory, designed by the plan,

for the 10-100 horsepower "gigogne"

motors^

Concerning the production of bicycles,

(without motors),

either the assembly or the production of detached pieces is another profitable pro¬

ject for the Maghreb. If good bicycles could be produced at reasonable prices the Maghreb market could absorb from 300,000 to 400,000 bicycles

a year.

0^£S\Ta\ïaiI

5. Electronics Industries

A study for an integrated electronics industry in North Africa, has

been undertaken by the- E.C.A.

4/

_{It covers the} improvement of the produc¬

tion of the iJresent

(1966)

^{plants, the} competition between the local products and imports, planning continuity, horizontal and vertical integ¬

ration, manpower training, research and standardization, etc. According

teT this study the total Maghreb demand in 1966" for electronic products

is estimated at 100 million dollars, of

which'$75

million worth is- -~

imported and $25 million from local production. But as the industry inputs about

$1§-_ million worth of

^spare

parts,

so

total impor is

-are

of

the value of $90m. for a demand of $100 million.

J_/

When operating on a small scale, the specialization of workers on

one or small numbers of operations is impossible

(time

is- lost

changing from one operation to another, as the vehicle proceeds down

the assembly line and tools have to be continually

changed).

2j

op.eft.

p.48

_3/

The Maghreb marKet needs about

25,000

household

refregerators. There

is a unit in Casablanca with a

capacity

^of 6.000. It is suggested

that this factory.should be expanded to provide ail-the Maghreb needs

A factory for machines and another for automatic commercial scalps is

also suggested. There are other suggestion,"too, to organize the production of cars, tractors, lorries and fishing boats.

4/

Broussier Report % ECA

14/INR/149»

l.jool ■îiij 'iie'swioJ' .-ícxtií ^aliiei-i ( • •,i'

)

'i . ..•:!«

le

n

if

,:víni Lsoïtra^r ima_A L?jiiOkxreu .yixmxínqoJaalaasXe

,aí\OffáíX biuaiowooxq

projection of the total Maghreb demand for 1^80. is estimated

nxbSSSoj^

_{a dout'}

S^éSïMs

_{$500 milli}

íEq^â^í

_{c~ ~ —-**- J--~-L~ ----3 — a}

ostimatea at $17^

b/P ilOtP^'xrK^ ifcîJL.,Jt,Fr~~JLV 7 e;i45xiia;.'

millions. The report suggested 18 new projects in order to satisfy this

4.vrilX'-i.«JbhkCj■'- it i£l - h,-id.■+■.-a«l.-4-ÍOiiu-OJi(iJOr^:Qy-|-X'-'J1OOflj-»U(-•11,-S4.0 ll~LíPvC?X.'-í- ' \-bí^Q^-j

ÍDuí-Ji

10.J_l.ix

• ■ ■ demand under, the best conditions.

î-0"®1-1

- - '

-•■'l'ifhhvh t:,r••".rj.i

îfé^S'éî^

To mention, a few examples of the, ele$]trA»Abi pnoducjfcgvv pnéíwould say -orfOff lovfooaaion e -Ojus Ç lo^noxroWo-fq ■gnf loryd ofoJsT xsBxr^Sis sax no

that the Maghreb market would absorb from 1200 to 1500 tons a year of

-onom xswoqeaxcm \ 101 yneqiisoo nsxaxflwf eq4 ^ajaixctau j'ui,v.•-'t.vhflk,Uii.

i?:; 10.5eh©ctric-ah rnotjors. _; Thex'o ^are three -factobies- i'n

ebLeither

in

'*'•ff

^Sfôi^&x ?9âxdr$3S85S± &Ê°Sx95^FsSu4p*Hïê sSscftSfl $ï§Sé^ià ëSé^^

v-

operation, such .^ffho^&; sgipll, e,}.@ .0^^^-,. mot ors

,

or

in the phase of construction such as a similar -Tunisian factory at Menzel

• "

Borguiba/

or

sii^ulated

in the "plan "a's in

Morocco;1' 'Trie'

co-ordination of

." . "i .■' ilO-h'-' .•-'■•!■'vfih'.'-'o; " '•■ 1-, vir •:' '.1,!'

-.Ayíiu.

w

. the^- production of thèse three factories'and'.a kind'of

specialization

amongst them seems necessary-'.

. O" i ••> C> ftl* XQXi' -'Jp.'*!" r'.u':hOi"ïi .i:'I '• 1'ObiXlIIX' IOX. "y/XOfpi:'1 A.

bcyyrj_.-,r OCóhOOh QÍ vo^pjor p:-:iX croads,Mhs

aril ahbxit

..■ "lit ^. o"f ^{■ -,}!■:; ao.1.1 o cir- erexlT .htíjseTygwa oa1x3

So far as the, electrical transformers, aje,

conc^pnje;d;, the .size of the

Maghreb market is estimated to...range,,from 1-,530 to

2,000.

tons a year.

The general electric company in Morocco ""and the" Tunisian "company

(

SA

CEM)

would supply, .all these,needs.^ taking into

consideration the organization

and a certain degree of Specialization between the two units

and the

use

of the Maghroh local products.

In the production of wires and telephonic wires, an existing

Algérie

factory, with its 5,000 tons capacity per annum

would supply the Maghreb

requirements. So fax as the electric wires

and cables

are

concerned,

there aro two factories, *one in Algeria with a capacity

of 3,000 tons,

and the .second is in Morocco

(Mohammadia)

with ^a capacity of

2,000 tons,

which could supply the whole Maghreb market.

There is scope also for an industry to produce electrical

lamps (15

_ 100

watt.)

and

fluorescent tubes to-supply the Maghreb-whose needs

are estimated at about 17 million lamps for 19-73.

1/

JJ Giri Report, op.cit.

idep/et

2340

Dans le document Economic integration in the Maghreb (Page 66-72)