Syria - Industry

Syria has been renowned since ancient times for such handicrafts as Damascus brocade and Syrian soap. Some of these traditions endured even after 1933, when the first mechanized plant for spinning and weaving was set up in Aleppo. In 1965, the textile industry was nationalized and reorganized into 13 large state corporations. A series of nationalization measures after 1963 resulted in public control of most industry, but recent efforts have been made to stimulate the expansion of the private sector, as state-owned industries suffer from low productivity. In the 1970s, government policy began emphasizing domestic industrial production (coupled with high tariffs on imported consumer goods) of iron and steel, fertilizers, chemicals, and household appliances. In 1995, manufacturing and mining accounted for 14% of GDP. By 2000, this proportion had reached 23%. In 2002, the government announced that priority would be shifted from efforts to privatize the state-owned enterprises (SOEs) to continued efforts to increase their efficiency.

Important industries include the chemical and engineering industries, the food industry, and oil refining. The largest component of the General Establishment of Chemical Industries (GECI) is the cement industry, which is considered a strategic and is wholly state-owned. The General Organization for Cement and Building Materials consists of 7 state-owned but independently operated cement companies. The total capacity in 2001 was about 5 million tons per year, with government plans to increase this to 8 million tons per year. Another subsidiary of GECI is the General Fertilizer Company (GFC). It has two nitrogenous fertilizer plants and one phosphate-based unit, all located at Homs. Under construction in 2002 was a 500,000 ton/year triple-super-phosphate plant near Palmyra being built by Bechtel and Makad International. Also planned is a 450,000 nitrogenous complex near Hasaka to use natural gas from the Omar field in northeast Syria. Syria's fertilizer industry rests on its ample deposits of natural gas and phosphates, and produces ammonia, urea and nitrogenous fertilizers. Syria also has an iron-rolling mill at Homs and factories producing furniture, refrigerators, paper, glass and plastic products, and television sets. Some 70,000 tons of crude steel were produced in 1995. Syria has a total refinery capacity of 239,860 barrels per day from two refineries: a 132,725 barrels per day capacity refinery at Banias and a 107,140 barrels per day capacity refinery at Homs. Plans to upgrade both have been announced.