Displaying items by tag: Ethiopia

Ethiopia: Oromia State has signed a memorandum of understanding with the Ministry of Mining and 20 cement companies to regulate the price of cement. State Deputy President Awolu Abdi said that the price of cement products had been ‘skyrocketing’ due to international and internal factors, according to Walta Media. He partly blamed the problem on ‘illegal’ cement brokers and the inability of cement plants to produce output at their full capacity. The state government has been working with cement producers and approved distributors on the problem. The regional move follows action by the central government to cut out dealers and distributors from the market in mid-May 2022.

Ethiopia: The Ministry of Industry has asked cement plants to sell their products directly and excluded distributors from the market. In a letter sent to 10 cement companies the ministry asked the plants to tell it the names of the agents that had blocked, according to the Ethiopian Reporter newspaper. The government is attempting to minimise the distribution chain for cement and reduce its end price. It also plans to take measures against cement pants that continue to use agents. The ministry has been asking cement plants to provide information about their production and distribution lines over the past nine months to support its market monitoring.

Nigeria: Dangote Cement says it has resumed exporting clinker from its Onne and Apapa terminals to Cameroon. Two ships delivered 57,000t of clinker and 0.34Mt of clinker was exported by road in the first half of 2021. The cement producer started exports in 2021 but was forced to suspend them in April 2021 following high demand for cement domestically.

The group’s revenue grew by 44.8% to US$1.68bn in the first half of 2021 from US$1.16bn in the same period in 2020. Cement sales volumes rose by 26.1% to 15.3Mt from 12.1Mt. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 61% to US$853m from US$530m. In Nigeria cement demand was attributed to increasing housing infrastructure, commercial construction and government projects including roads and railways. Outside of Nigeria, strong performance was noted in the Republic of the Congo, Cameroon, Ethiopia, Senegal and Tanzania.

“This strong intrinsic performance is magnified by the lower second quarter results in 2020 due to the effect of Covid-19. The growth trend continues and we are focused on meeting the strong market demand across all our countries of operation,” said chief executive officer Michel Puchercos. He added that the group restarted clinker exports from Nigeria in the second quarter of 2021 following a ‘strategic decision’ to pause them in response to high demand domestically. The cement producer intends to commission its new 3Mt/yr Okpella plant in the third quarter of 2021. He also said that the company’s ongoing alternative fuels project is at an ‘advanced stage’ with procurement and installation of equipment occurring at all plants.

Ethiopia: China-based Sinoma International Engineering’s subsidiary Suzhou Sinoma has signed an initial deal with Western International Holdings to build a 10,000t/day clinker production line at Lemi in Amhara Region for around US$326m. The line includes entry of raw materials to the packaging of finished cement. Once Western International Holdings establishes a company to carry out the project Suzhou Sinoma will sign a further contact to confirm the deal. At this point construction is expected to take around 20 months.

Ethiopia: East African Holding and China-based West China Cement have formed a joint venture. The Xinhua News Agency has reported that the partners plan to establish a multi-industrial complex in Ensaro Woreda district, Amhara regional state. Called Lemmi National Cement complex, the facility will house a 10,000t/day cement plant in addition to other industrial plants. The partners say that the facility will create 5000 jobs.

The first phase of the project will establish the cement plant and reach completion in late 2022.

Ethiopia: Prime Minister Abiy Ahmed says that a new 7000t/day cement plant is almost ready for commissioning. New Business Ethiopia News has reported that the government hopes that the unnamed unit will be operational by June 2021. The 2.5Mt/yr Abay Cement plant at Dejen in Amhara region was previously scheduled for opening in 2021. The news comes at a time of rapid cement price rises in the country. A large black market has also arisen to serve overextended demand.

Ethiopia: Denmark-based FLSmidth says that its contract with Abay Industrial Development Share Company for engineering, procurement and supervision on the upcoming Dejen cement plant is now effective. The 5000t/day plant will cost US$120m and create new 300 jobs, according to the supplier. It said that the plant will “play an important role for the development of local infrastructure.”

The supplier is responsible for design and engineering, full equipment supply, automation systems, installation and commissioning, as well as training and extended supervision. Key deliveries are due to begin in late 2021.

FLSmidth president Carsten Riisberg Lund said, “We are happy to see the contract now in effect. Following months of challenging working conditions on sites around the world, we are eager to get started on the project. This contract once again underlines our position as the preferred supplier of sustainable and productivity-enhancing solutions to the global cement industry."

Ethiopia: The Ministry of Trade and Industry says that it is granting licences for the import of 16Mt over the financial year ending 7 July 2021, the 2021 financial year. The Ethiopian Press Agency has reported that the cause of the measure is a cement shortage resulting in inflated prices. The order requires importers to import a minimum of 3000t of cement, and to begin importing before 8 December 2020.

Director of communication affairs Wondimu Flate said, “The directive was prepared in order to enable cement factories to produce at their full potential and to connect those engaged in the sector from the manufacturer and importer to the retail business, with supply and distribution being monitored and used.”

South Africa: PPC has delayed the publication of its annual results for the year to 31 March 2020 for a second time due to a “restructuring and refinance project.” It now expects to publish the results by late September 2020. It previously delayed reporting its financial results when the Johannesburg Stock Exchange allowed it to delay releasing the figures because of challenges created by the coronavrius pandemic. The cement producer also said it has found errors in its financial reporting for the year that ended in March 2019 due to mistakes made in valuing operations in Ethiopia and Zimbabwe and a miscalculation of the accounting of a foreign-exchange transaction in the Democratic Republic of Congo (DRC).

The group expects that revenue for the year to 31 March 2020 will decline by no more than 5% year-on-year from US$605m in the same period in 2019. Earnings before interest, taxation, depreciation and amortisation (EBITDA) are expected to fall by up to 20% from US$113m.

In an operational update for April to July 2020 the group said that it ramped up cement operations in May 2020 following the relaxation of coronavirus-related lockdowns in most of its territories. It attributed strong growth in cement sales volumes in June and July 2020 due to a reduction in imports as well as pent-up demand. Similarly, sales volumes were strong outside of South Africa, particularly in Zimbabwe and Rwanda, and in the DRC to a lesser extent.

Ethiopia: Samuel Halala, the director of Ethiopian Chemical and Construction Inputs Industry Development, says that the Abay Cement plant is 60% complete and due to start operation in 2021. The 2.5Mt project is located near Degen in Amhara Region, according to New Business Ethiopia. It has an investment of around US$260m. Once completed it is expected to create 1500 jobs.

Halala added that the country’s 21 cement plants have a production capacity of 17Mt/yr but have a capacity utilisation rate of around 60%. Only 14 plants are currently active, producing 11.5Mt/yr.