Tunisia: Chemical Sector Calls for Government Support

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    Tunisia Live (Tunis)

    Samia Fitouri

    28 December 2011


    The Tunisian Chemical Group (TCP) held a press conference yesterday at their headquarters in Tunis. The event highlighted the crisis that the Tunisian chemical sector has been enduring in recent months, and called for the implementation of urgent recovery measures.

    “We have announced the recruitment of 3000 employees and the creation of a small environmental services program – with 300 dinars as a guaranteed minimum wage. We have also inaugurated a new bank. We have been trying to deal with the protesters’ demands one by one, but we cannot continue dealing with this critical situation alone. We need the support of the government as well as the trade unions,” stated Kais Daali, recalling the tremendous efforts that the board has deployed to restart production as quickly as possible.

    Daali is the General Executive Director of Tunisia’s three largest chemical fertilizer plants: Tunisian Chemical Group (TCP), Phosphate Gafsa Company (PGC), and the newly-founded company TIFERT (Tunisian-Indian Fertilizer Company).

    Daali traced the timeline of the Phosphate crisis, which began in mid-February, 2011, when a wave of strikes disrupted the phosphate plant in Gafsa. Demands primarily addressed employment, retirement allowances, re-distribution of revenues, and the abolishment of outsourcing. This year’s losses were estimated at 600 billion dinars, and 2011â-‘s production represented only 30% of last year’s output. Most of this year’s revenues stemmed only from Tunisia’s national phosphate reserves, given that production has been halted since November 23rd.

    Daali expressed his grief over the dramatic repercussions that the suspension of production has had on the chemical and agricultural sectors, and highlighted the economic challenges that 2012 would bring. “Our global partners, namely Europe, are enduring an international recession, which makes our situation all the more challenging. International demand has dropped drastically in the last six months alone,” said Daali.

    Turkey is considered to be the primary export market for Tunisia’s chemical sector. Approximately 90% of Turkish fertilizer exportation depends on Tunisian phosphate production. Following the harmful suspension of work, Turkey, along with other international customers, has been forced to turn to Russian, American, and Morrocan suppliers.

    “Tunisia used to be the world’s third largest force in the exportation of Phosphate and chemical derivatives. Following this unrest, our reputation has suffered dramatically. We are going to have to reach out to the newly-formed government in order to avoid losing the profits of the upcoming year,” Daali stated.

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