Algiers – Madrid crisis: Spanish businessmen impacted

For several months now, diplomatic relations between Algeria and Spain have been in good shape. Indeed since the position taken by Madrid in relation to Western Sahara, openly supporting Morocco. Algeria has decided to suspend economic relations with Spain, which has a strong impact leading to huge losses in several sectors.

These losses affect almost all sectors, and although the energy and gas sector in particular has been the most affected, other strategic sectors have also experienced repercussions.

The ceramics sector strongly impacted by the crisis between Algeria and Spain

In this sense, the latest statistics have revealed that the activities related to the ceramics sector have suffered a strong impact following the boycott imposed on Spanish products. The recipe amounted to 40 million euros over the six months following the outbreak of the crisis between the two countries.

In fact, Spain is a world reference in the manufacture of glass and colors for ceramics, which is the part that covers the tiles and gives it the desired design and color. After Italy, Algeria is the main market to which Spanish companies exported these products before the diplomatic break in March.

According to the Spanish media, the Association of Employers “ANFFECC” estimated the losses of the “ceramics” sector at around 40 million euros. The same sources say that at the beginning of last summer the losses were only around 25 million euros, and now the figure has almost doubled. For this reason, they ask the government “for a diplomatic solution to the conflict as soon as possible”.

Importantly, Spanish businessmen have also confirmed that Algerians do not accept products from Spanish companies that come from production plants located in other countries. So a complete disappearance of trade relations in this sector.

The struggling energy sector

Another sector is also affected by this crisis, condensed gas, used in ceramics is known for its high energy consumption. Many materials used in the ceramic sector are subjected to a series of chemical elements in a kiln process at temperatures above 1500°C, to subsequently cool it and thus obtain the main component of the ceramic coating.

The merger process includes high gas consumption at a time when Spain is living in the midst of a serious gas crisis, after Algeria decided to reduce gas exports to Madrid, to the quantities stipulated in the agreements signed between Sonatrach and Naturgy, which is why the Spaniards are now running to look for new sources of energy, to compensate for the shortfall in quantities of gas from Algeria.

Since Algerian importers have resorted to other alternative countries such as Turkey, China and Italy. The suffering of Spanish exporters is not limited to the ceramics sector, but also to other export sectors such as red meat, paper and raw materials used in the pharmaceutical industry.

Leave a Comment