Displaying items by tag: Cimerwa Cement

Rwanda: South Africa’s PPC is considering buying the government’s stake in Cimerwa. Cimerwa chief executive Bheki Mthembu said that PPC Group is performing a share valuation excersise, according to the East African newspaper.
Soraya Hakuziyaremye, the Minister of Trade and Industry, announced the sale in mid-June 2019, after the divestment was first proposed in March 2019.

PPC already owns a 51% stake in the cement producer. The government owns a 16.5% stake and other shareholders include the Rwanda Social Security Board with 20.2%, Rwanda Investment Group with 11.5% and Sonarwa Group 0.8%. The entire 49% stake is currently for sale. Potential buyers have until 5 July 2019 to register their interest.

Rwanda: The Rwandan government has started to sell its stake in Cimerwa. It holds a 16.5% stake in the cement producer via the Agaciro Development Fund, Rwanda's Sovereign Wealth Fund, according to the New Times newspaper. Other shareholders, including SORAS Group, Rwanda Social Security Board (RSSB), and Rwanda Investment Group (RIG), have also expressed interest in selling their shares, making a total of 49% of shares available. The government originally intended to start the sale in March 2019. Potential buyers have until 5 July 2019 to register their interest.

Cimerwa produced 0.36Mt of cement in 2018, a figure well below its production capacity of 0.6Mt/yr. However, the country imported 0.32Mt of cement in 2018 to meet local demand. The company has also made a loss in recent years. The integrated plant is run by South Africa’s PPC, which has a majority stake in the firm.

Rwanda: The government plans to sell its 49% stake in Cimerwa in March 2019. The 0.6Mt/yr integrated plant is run with South Africa’s PPC, which has a majority stake in the firm, according to Reuters. Prime minister Edouard Ngirente said that it would run an auction by the end of the month. He added that PPC had not yet said if it was interested in buying the remaining stake in the business.

Rwanda: Vincent Munyeshyaka, the Minister of Trade and Industry, says that traders who are charging too much for cement will be fined. He told the New Times newspaper that about 30 traders have been fined for cement price speculation so far. Fines range up to about US$350. The country has faced a shortage of cement since February 2018 when local producer Cimerwa started upgrade work at its Bugarama plant.

Rwanda: Upgrade work at Cimerwa’s plant at Bugarama has led to local cement prices rising by up to nearly 50%. The plant has been shut for nearly a month for improvements to its mill, heat exchanger bypass, clinker cooler plate, bag filter and limestone weigh feeder, according to the New Times newspaper. However, the work has been delayed by bad weather and delays waiting for imported parts to arrive.

The total cost of the upgrade project is US$3.3m. An unnamed German contractor has been involved with the work. The plant has a nominal production capacity of 0.6Mt/yr but it currently produces 0.5Mt/yr. Normal supply from the plant is expected to resume by the end of May 2018.

Rwanda: Cimerwa plans to upgrade its Bugarama cement plant in Rusizi District of Western Province. The project is intended to increase the plant’s production capacity and to target demand locally and abroad, in particular infrastructure development, according to the New Times newspaper. However, the subsidiary of PPC has not disclosed how much it is spending on the project. Upgrade work will start in March 2018 and end in April 2018.

At present the 0.6Mt/yr plant has a 65% production utilisation rate. The company expects to reach full capacity in mid-2019, although it claimed in 2017 that it would be able to do this by mid-2018. In 2017 the company sold 0.38Mt of cement, with 10% exported to Democratic Republic of Congo and Burundi. The plant imports most of its coal from Malawi and Tanzania.

Rwanda: Bheki Mthembu has been appointed the chief executive officer of Cimerwa, PPC’s subsidiary in the country. Mthembu has been in post since December 2016, according to the Business Day newspaper. Mthembu holds a degree in chemistry from the University of KwaZulu-Natal. He has worked for PPC since 1995.