Ethiopia: Messebo Cement has hired Industrial Projects Service (IPS), a state-owned consultant, to conduct an assessment of the cement market around Addis Ababa. It wants to explore the feasibility of opening a grinding plant where semi-processed clinker from Tigray will be processed to produce cement.

"The project is mainly intended to minimise the transportation cost incurred from Mekelle to Addis Ababa, which is US$24.5 – 33.7/t, and hence to enable the plant to compete with existing cement plants in the city," said Kidane Tekelehaimanot, Messebo's deputy project manager. Mekelle is 770km away from Addis Ababa. The Addis plant, if opened, would receive and crush the semi-processed clinker by mixing it with additives, which account for 30% of the total amount currently transported from Mekelle. The Mekelle plant produces 83% of its 2.24Mt/yr cement production capacity.

Messebo is the second company after newcomer Habesha Cement to undertake a market study. Habesha, which has a designed production capacity of 2.5Mt/yr, has hired Waas International Consulting to assess the current and future demand and supply of cement, as well as to determine the need of for expansion. Dangote and Derba Midroc cement plants are also planning expansions, with Derba intending to double its 2.3Mt/yr production capacity.