The Syrian Ministry of Economy and Industry signed a memorandum of understanding today with the Iraqi investment group Vertex to rehabilitate, develop, and operate the third production line at the Hama Cement Plant (central Syria).
The agreement includes increasing the plant’s production capacity from 3,300 tons per day to 5,000 tons of clinker within 13 months of the contract signing.
It also provides for the establishment of a new production line with a capacity of 6,000 tons per day, bringing the plant’s total capacity to nearly 11,000 tons per day within the next five years.
According to the ministry’s statement, the memorandum also stipulates training and qualifying the workforce, applying the highest quality standards, and complying with international regulations on environmental protection, occupational safety, and industrial security, to boost the competitiveness of Syria’s cement industry.
Mahmoud Fadila, Director of the General Organization for Cement and Building Materials (OMRAN), told Enab Baladi that the agreement with the Iraqi company represents the most significant investment in the cement sector at the ministerial level, estimating the investment value at around $300 million “within the shortest period and with the highest quality.”
He revealed that the final contract with the Iraqi company will be signed within one month of the memorandum and will operate under the “BOT” system. He noted that the memorandum followed an initial feasibility study before evolving into a formal agreement.
Previous UAE contract for Hama Cement
Last August, the ministry signed an agreement with the Emirati company A³&Co, specialized in cement and sustainability, to develop Syria’s cement sector. That deal also targeted the rehabilitation and development of the third production line at Hama Cement Plant, established in 2009 with modern American technology.
At the time, OMRAN director Fadila explained to Enab Baladi that this line was chosen after studies showed it was the most technically and economically viable compared to other lines, as it can produce over 12 types of cement that meet both Syrian and European standards.
He added that many other lines are outdated and beyond their operational lifespan, making further investment unfeasible, especially since some of their manufacturers no longer exist.
The Emirati agreement went beyond technical rehabilitation to include a strategic consultancy role. The company was contracted as a strategic advisor to draw a roadmap for developing the industry, propose sustainable policies, and introduce automation, digital control, and artificial intelligence technologies to raise productivity and quality.
The plan also included training around 80 workers and engineers at the Hama plant in cooperation with the ministries of Industry and Environment, sending engineers abroad on training missions, and signing memoranda with manufacturers to train Syrian staff.
Regarding the overlap between the Emirati and Iraqi agreements in workforce training, Fadila stressed there would be no conflict, noting that the Emirati contract covers training at facilities still directly under Syrian government control, such as the second production line at Hama Cement.
He previously told Enab Baladi that there are fewer than 30 local cement experts in Syria, most of them elderly, making the training of a younger workforce an urgent necessity.
On July 17, the Hama Cement Plant announced the installation of a modern German-made Haver rotary filling machine, with a capacity of 120 tons per hour, according to its director Ammar al-Sheikh, who spoke to the state-run Syrian Arab News Agency (SANA).