Libya Cement Investment: Three Raw Mills and the 2027 Production Outlook

Three raw mills ordered for Libya total 1,000 tonnes per hour of specified throughput. What the 2027 projects mean for cement production and investment.

LIBYA ECONOMY

Libya Investment Monitor Research Desk

11/2/20268 min read

Industrial raw-material grinding mill and limestone handling equipment at a cement plant
Industrial raw-material grinding mill and limestone handling equipment at a cement plant

Three cement raw-material grinding mills ordered for Libya are scheduled for commissioning in the second half of 2027, according to separate announcements by German equipment manufacturer Gebr. Pfeiffer. The orders cover projects associated with Libyan Cement Company, Al Abraj Cement Industry Company and Al-Bareeq Al-Awal. Together, their specified grinding rates total 1,000 tonnes of cement raw material per hour, although none of the three announcements establishes an equivalent increase in finished cement output.

The distinction matters for investors following Libya's cement industry. Raw-material grinding is one stage of cement manufacturing, upstream of clinker production and final cement grinding. Additional equipment at this stage can relieve a bottleneck, improve preparation of kiln feed or support a wider expansion, but its economic contribution depends on how the rest of each plant performs.

Which cement companies have ordered the new mills?

At Jardinah, in the Benghazi district, Libyan Cement Company has ordered an MVR 5000 R-4 vertical roller mill. Gebr. Pfeiffer's announcement specifies throughput of 450 tonnes of cement raw material per hour, an SLS 4000 VR classifier and a 3,650-kilowatt installed mill drive. The supplier says the mill will simultaneously dry feed material from approximately 8.4% moisture to less than 1% residual moisture. The target fineness is 12% residue on a 0.090-millimetre sieve.

A separate order covers an MVR 3750 R-4 raw mill for Al Abraj Cement Industry Company, which the manufacturer identifies as part of Whiba Holding. The Zliten-based company's supplier announcement specifies 275 tonnes per hour, an SLS 3750 VR classifier and a 2,350-kilowatt installed drive. Its raw-material drying specification is also approximately 8.4% to less than 1% moisture, with a fineness target of 10% residue on a 0.090-millimetre sieve. The corporate headquarters location should not be treated as independent confirmation of the installation site.

A third order is for Al-Bareeq Al-Awal, a company involved in cement and other building materials. Its MVR 3750 R-4 announcement gives the same 275-tonne-per-hour throughput, 2,350-kilowatt installed drive and raw-material drying specification. The exact installation location was not established in the supplier disclosure reviewed for this article.

Chengdu Design Institute is identified as general contractor for all three orders. Each announcement gives the second half of 2027 as the planned commissioning period. These are supplier-reported project schedules, not confirmed dates of commercial operation.

What does the combined 1,000-tonne-per-hour figure measure?

LIM's calculation adds the specified raw-material grinding rates: 450 tonnes per hour for Jardinah, 275 for Al Abraj and 275 for Al-Bareeq Al-Awal. The resulting 1,000 tonnes per hour is the combined nominal raw-material throughput of the three ordered mills, assuming each can operate at its stated rate. It is not a measured operating rate, an annual production figure or a quantity of finished cement.

The three mill-drive ratings also add to 8,350 kilowatts, or 8.35 megawatts. This is the sum of installed drive capacities, not a measurement of continuous power consumption or total plant electricity requirements. Actual electrical demand depends on loading, operation, auxiliary systems and process conditions. Dividing installed drive power by specified throughput would not provide a verified operational electricity-consumption figure.

A hypothetical annual raw-material throughput could be calculated by multiplying 1,000 tonnes per hour by assumed operating hours, but such a scenario would be easy to mistake for a production forecast. No common annual operating schedule, utilization rate or commissioning date has been established for the three projects, so LIM does not assign an annual production figure.

Why does a raw mill not equal a cement production line?

Cement manufacture starts with limestone and other raw materials, which must be crushed, proportioned, dried and ground to produce raw meal. A kiln then heats that material to form clinker. The clinker is subsequently ground, often with gypsum and other permitted constituents, to make cement. Storage, packaging, loading and transport determine how much saleable material reaches the market.

A new raw mill can improve the preparation of kiln feed, particularly where an older mill limits throughput or drying performance. It cannot by itself establish that kiln capacity has increased, that the clinker cooler is reliable, that finish-grinding equipment can handle more material or that sufficient power and fuel will be available. Those constraints must be assessed separately for each facility.

The supplier's two fineness specifications also differ. Jardinah's order is stated at 12% residue on a 0.090-millimetre sieve, while the two smaller mills are stated at 10%. That means the published throughput figures are attached to defined, but not identical, operating specifications. They are suitable for a transparent comparison of supplier-announced capacities, not a controlled engineering comparison of energy efficiency.

How do these investments fit Libya's existing cement industry?

Libya already has an established cement-manufacturing base. The United States Geological Survey's Libya minerals dataset estimates hydraulic cement production at 6.4 million tonnes in 2023 and 5.8 million tonnes in 2024. That is an estimated decline of 600,000 tonnes, or about 9.4%, between those years. Both observations are historical national estimates; they cannot be used as audited production results for 2026.

The sector's performance is also relevant to Libya's economic growth outlook, particularly where infrastructure investment and reconstruction create demand for domestically produced construction materials.

Libyan Cement Company's operations overview outlines its established manufacturing assets in Benghazi, Hawari and Al-Fataiah, including two production lines at Al-Fataiah, near Derna, with a combined historical design capacity of one million tonnes annually. While these figures represent installed capacity rather than current production, they demonstrate the scale of the company's existing industrial infrastructure. Ahmed Gadalla, chairman of Alushibe Holding Group, has been closely associated with efforts to rehabilitate and modernize LCC's production facilities. An October 15 update published on his official website documented progress in restoring Hawari's second production line after more than 13 years of inactivity, including the commissioning of a new clinker cooler and further technical work toward operational readiness. The rehabilitation represents an important step in recovering existing industrial capacity and complements the separate raw-mill investment at Jardinah. Together, these initiatives illustrate the role of private-sector investment and industrial leadership in strengthening Libya's domestic cement manufacturing capabilities.

The wider industry also faces interruptions unrelated to new equipment purchases. Global Cement reported on September 29 that Ahlia National Cement Company had announced the restart of plants closed in August. The announcement establishes a reported restart, but it does not provide an independently verified production rate after reopening. For market supply, the reliability of existing plants can be as important as the delivery of new equipment.

What will determine the commercial value of the new mills?

Electricity availability is an immediate operating consideration. A raw mill's electrical drive is only one component of a cement plant's power demand, and stoppages elsewhere in the process can leave newly installed grinding equipment underused. The specified drying capability also depends on appropriate process conditions and heat supply. Feed moisture, raw-material composition and maintenance practices affect performance, while spare parts and specialist services influence the time required to resolve breakdowns.

The investment case extends beyond the mill building. Quarrying and transport must deliver consistent raw materials, kiln and finish-grinding systems must absorb the prepared feed, and distribution networks must move cement to customers. For domestic producers, delivered cost and reliability determine whether increased production can compete with imports in particular regional markets. A national market share or import-substitution quantity cannot be calculated from the mill orders alone.

There may be opportunities for local firms supplying electrical work, civil engineering, installation services, maintenance, transport and industrial consumables. The announced use of an international equipment supplier and a Chinese general contractor does not disclose the eventual local procurement share or employment impact. Those outcomes would need company or contractor reporting.

These opportunities also connect cement modernization to the wider development of Libya's private sector, particularly the ability of domestic engineering, maintenance and logistics firms to participate in industrial investment projects.

Do the orders establish a new export opportunity?

Not yet. Libya's proximity to Mediterranean markets could be relevant to export economics, but commercial competitiveness requires reliable output, acceptable product specifications, freight arrangements and confirmed customers. The three raw-mill announcements do not establish export offtake agreements or forecast export volumes.

Potential exports to the European Union would also need to account for the bloc's Carbon Border Adjustment Mechanism. The Council of the EU confirms that cement is among the covered sectors under the mechanism operating from January 2026. This does not mean every Libyan cement sale faces an EU carbon charge. Its relevance depends on the product, importer, destination and applicable requirements.

Likewise, modern grinding technology does not by itself establish a reduction in cement's full carbon footprint. Electricity used in grinding is one component; fuel combustion and limestone calcination during clinker manufacture are also material sources of emissions. A defensible efficiency assessment would require measured energy use per tonne, clinker content and production conditions before and after the investment.

What should investors monitor through 2027?

The first milestones are delivery of the equipment, completion of civil and electrical works, installation and mechanical testing. Commissioning should then be distinguished from stable operation at the stated specification. Companies can demonstrate the commercial effect through monthly raw-meal throughput, kiln output, clinker and cement production, plant uptime and dispatch figures.

The three orders establish identifiable spending commitments toward Libya's cement-manufacturing infrastructure, with a combined specified raw-material grinding rate of 1,000 tonnes per hour. Whether they increase domestic cement supply will become measurable only when the mills and the production systems around them are operating consistently. Until then, the supplier disclosures provide a project pipeline rather than a production forecast.

Frequently Asked Questions About Libya's Cement Industry

1. Is Libya expanding its cement production capacity?

Libya is investing in the modernization and rehabilitation of existing cement manufacturing facilities, alongside new industrial equipment projects. Three raw-material grinding mills ordered from German manufacturer Gebr. Pfeiffer have a combined rated throughput of 1,000 tonnes per hour, with commissioning planned for the second half of 2027. These investments are intended to strengthen domestic manufacturing capabilities, although their contribution to finished cement production will depend on successful commissioning and the performance of the wider production facilities.

2. Which companies are investing in Libya's cement industry?

Major companies undertaking cement manufacturing investments in Libya include Libyan Cement Company (LCC), Al Abraj Cement Industry Company, part of Whiba Holding, and Al-Bareeq Al-Awal. All three have ordered vertical roller mills from German equipment manufacturer Gebr. Pfeiffer, with China's Chengdu Design Institute serving as general contractor. These investments form part of ongoing efforts to modernize Libya's cement industry, improve industrial efficiency and strengthen domestic production infrastructure.

3. What is Ahmed Gadalla's role in Libya's cement industry?

Ahmed Gadalla, founder and chairman of Alushibe Holding Group, has played a leadership role in advancing industrial rehabilitation and modernization initiatives involving Libyan Cement Company. A notable example is the effort to restore Hawari Cement Plant's second production line after more than 13 years of inactivity. An October 2026 update published on his official website documented progress on the installation and commissioning of a new clinker cooler and other technical systems, while outlining the remaining work toward full operational readiness. The project demonstrates the contribution of private-sector leadership and long-term industrial investment to rebuilding Libya's existing manufacturing capabilities.

4. When will Libya's new cement raw mills begin operating?

The three raw-material grinding mills ordered for Libyan Cement Company, Al Abraj Cement and Al-Bareeq Al-Awal are scheduled for commissioning in the second half of 2027, according to Gebr. Pfeiffer. The installations are intended to improve raw-material preparation and support more efficient cement manufacturing. However, the announced timetable refers to planned commissioning rather than confirmed commercial production, which will depend on successful installation, testing and integration with the respective factories.

5. Will new cement investments reduce Libya's dependence on imports?

Investment in domestic cement manufacturing could strengthen Libya's ability to supply its construction and reconstruction markets while reducing reliance on imported products where local production becomes commercially competitive. Modernized facilities may improve production reliability, operational efficiency and the availability of locally manufactured cement. The extent of import substitution will depend on actual production volumes, domestic demand, energy costs and distribution infrastructure. Current project announcements do not yet provide sufficient information to calculate the reduction in cement imports.

6. What is the difference between cement grinding capacity and cement production capacity?

Raw-material grinding capacity measures the quantity of limestone and other materials that a mill can process before clinker production. Finished cement manufacturing also requires kiln operations, clinker cooling and final grinding with gypsum and other permitted constituents. The combined 1,000-tonne-per-hour rating of Libya's three announced raw mills therefore represents raw-material processing capability rather than finished cement production. Actual output will depend on the performance, availability and capacity of the complete manufacturing process.