Jordan - Industry

With government encouragement, industry plays an increasingly important part in Jordan's economy. In 1990, the manufacturing sector contributed 15% to GDP at factor cost. Manufacturing output fell by 2.9% in 1991 due to the adverse impact of the Gulf War. In 1992, the sector grew by 6.2%. In 2001, industry as a whole accounted for 26% of GDP, while manufacturing contributed 17%. The sector grew at an annual rate averaging6.7% between 1988 and 1998. Most industrial income comes from four industries: cement, oil refining, phosphates, and potash. Cement production has been rising since the 1980s. In 1998, government sold 33% of the Jordan Cement Factories Company (JCFC) to La Farge of France as part of its program of privatization begun in 1996. The 60-year old Jordan Phosphates Mine Company (JPMC) has a monopoly on phosphate mining in Jordan. In 2002 the government began negotiating with the Potash Company of Saskatchewan for the sale of a 40% stake in JPMC, finalization scheduled for March 2003. The Arab Potash Company, a pan-Arab company, was granted a 100-year monopoly for potash mining in Jordan when it was founded in 1956. As of 2003, the government holds 52% and is seeking to sell 26%. Jordan's one oil refinery is in Az-Zarqa', which has a capacity of 90,4000 barrels per day. Oil is supplied to it from Iraq by a fleet of 1,500 trucks traveling across 600 miles of desert highway. Iraq sells oil to Jordan on terms of one-half free and one-half with a 40% discount of the price above $20/barrel. Since 1998 Jordan and Iraq have been agreed in principle to replace the oil trucks with a pipeline, estimated to cost $350 million. In 2002, Jordan was formally receiving bids for the first stage of the projects. The government holds 52% in a 100-year monopoly.

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