Displaying items by tag: Ethiopia

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.

Nigeria: Dangote Cement’s sale revenue fell by 3% year-on-year to US$1.30bn in the first half of 2019 from US$1.34bn in the same period in 2018. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 11.4% to US$605m from US$683m. Cement sales volumes decreased slightly to 12.3Mt. Revenue, earnings and sales volumes all fell in Nigeria but only earnings fell for its operations outside of the country.

“Group sales volumes were only slightly down on last year and this was a solid performance against the impact of delayed elections and increased competition from new capacity in Nigeria, as well as operational and economic challenges in key territories such as Ethiopia and South Africa. However, we saw a stronger performance from Tanzania, which is now running on gas turbines, and also from Senegal, where our sales volumes are more than 100% of our rated capacity,” said Joe Makoju, the group chief executive officer of Dangote Cement.

Ethiopia: The Endowment Fund for the Rehabilitation of Tigray (EFFORT) plans to sell its shares in Messebo Cement. The shares will go on sale at the International Tigray Diaspora festival later in July 2019, according to Fana Broadcasting. EFFORT is also selling its shares in SUR Construction and Trans Ethiopia.

Ethiopia: A new bag-packing unit at Dangote Cement Ethiopia’s Mugher plant in Oromia is unable to start operation due to a lack of raw materials. The US$20m polypropylene bag plant was completed in April 2018 but it is restricted by government controls on foreign currency that are limiting its import of input materials, according to the Reporter newspaper. The unit can produce up to 120 million bags per year.

The cement producer has also suspended plans to build a second 2.5Mt/yr production line at the plant. An agreement was signed with China’s Sinoma International for the project but it has since been abandoned due to a shortage of foreign currency, a lack of electrical power and general security issues. Deep Kamara, the country manager of Dangote Cement Ethiopia, was killed in an gun attack in mid-2018. No one has been arrested in relation to the murder.

Ethiopia: Electricity rationing has been restricting the production of cement companies since it started in April 2019. Under a program implemented by Ethiopian Electric and the Ministry of Water and Energy, cement producers are only allowed to operate for 15 days per month, according to the Reporter newspaper. They say this has increased their production costs because cement production is a continuous process that requires start up and stoppage time. The Ministry of Trade has asked that cement producers do raise the price of cement despite the increase in production cost. Input and transport costs have also risen.

“There is a huge waste of resources when we start up and stop running our plant. Continuous production has cost benefits. We spend 24 hours warming up the plant. There is wastage of coal and electric power,” said Mesfine Abi, the chief executive officer (CEO) of Habesha Cement. He added that the company is facing growing maintenance costs as its machines fail to cope with repeated power cuts.

The national electricity power restrictions have been caused by water shortages at hydroelectric dams. Rainwater has started flowing back in the dam reservoirs but power rationing is not expected to be rescinded until early July 2019.

Nigeria: Domestic sales growth drove Dangote Cement’s financial results in 2018. Its local cement sales volumes grew by 11.4% year-on-year to 14.2Mt in 2019 from 12.7Mt in 2018. Sales in the rest of Africa remained stable at 9.4Mt. Sales revenue grew by 11.9% to US$1.71bn in Nigeria and by 9.6% to US$784m in the rest of Africa. Overall revenue grew by 11.9% to US$2.49bn from US$2.23bn. Earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 12.1% to US$1.20bn from US$1.07bn.

“This is a record financial performance by Dangote Cement, driven by a strong increase in our home market, Nigeria, despite heavy rains and uncertainties about the election,” said Joe Makoju, group chief executive officer. He added that, although Pan-African volumes were unchanged in 2018, he was confident that the group would see an increase in 2019, driven by higher volumes in Tanzania, Ethiopia, Congo and Sierra Leone. Elsewhere in Africa the cement producer said that plant shutdowns in Tanzania due to delays to a gas turbine installation, civil unrest in Ethiopia and a reduction of imports from Nigeria to Ghana had reduced its sales.

South Africa: PPC’s sales volume of cement fell by 2 – 3% year-on-year in the nine months to December 2018. The cement producer said that, although prices had risen, the market had shrunk by up to 5%. Imports grew by 80% year-on-year for the January to November 2018 period. It added that its Sure Range product line had continued to gain market share against Portland Pozzolana Cement (PPC) and blended products. Outside of South Africa the company said that growth had been low in Zimbabwe and Democratic Republic of Congo due to local market conditions. Better performance was noted in Rwanda and Ethiopia.

Ethiopia: Abay Industrial Development has ordered a new 5000t/day cement plant worth Euro100m from Denmark’s FLSmidth. The plant will be built near Dejen. FLSmidth has received a down payment for the project but it will not be added to its order intake until further conditions have been met.

The order includes design and engineering, full equipment supply, automation systems, installation and commissioning as well as training and extended supervision. Completion of the order is expected during the second quarter of 2022.

Nigeria: Domestic sales volumes of cement by Dangote Cement grew by 11.7% year-on-year to 10.8Mt in the first nine months of 2018, from 9.6Mt in the same period in 2017. However, sales in Sub-Saharan Africa grew slightly to 7Mt due to lower sales in Tanzania, disruptions due to civil unrest in Ethiopia and a reduction in exports from Nigeria to Ghana. This was mitigated by growing sales volumes in Zambia. Sierra Leone and the start-up of operations in the Republic of Congo. The cement company’s revenue rose by 13.5% to US$1.89bn from US$1.66bn and its earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 14.6% to US$928m from US$810m.

“Nigerian sales were affected by serious flooding in September 2018 and although Pan-African sales were flat, we will see soon increased sales from Tanzania, now that its gas turbines are installed, and from Ethiopia as local community issues are resolved. We have launched new products in Nigeria that we believe will help us improve our leadership position in Africa’s most exciting market for cement,” said Joe Makoju, Group Chief Executive Officer (CEO).

Eritrea/Ethiopia: High volumes of cement imports have been reported across the Ethiopian-Eritrean border following a normalisation of relations between the neighbouring countries. Since mid-September 2018 an estimated 50t/day of cement have been transported from Adigrat in Ethiopia to three border towns in Eritrea, according to business owners in Adigrat quoted by the Addis Fortune newspaper. “A minimum of 20 trucks carrying cement is leaving from Adigrat to Eritrea daily,” said Angesom Berhane, owner of a cement store in Adigrat.