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Displaying items by tag: Prime Cement

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Prime Cement imports 50,000t of clinker via Port of Tanga

23 November 2021

Tanzania: Prime Cement has received a 50,000t shipment of Saudi clinker via the Port of Tanga. The Daily News newspaper has reported that the clinker will continue its journey by road to Rwanda.

Prime Cement’s business operations manager Mvayo Fabrice said "I call upon Tanzania Ports Authority to continue marketing the Port of Tanga so that we can receive more cargo and boost the regional economy and people's welfare."

Published in Global Cement News
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Prime Cement inaugurates grinding plant in Rwanda

02 September 2020

Rwanda: Prime Cement has inaugurated its new 0.6Mt/yr grinding plant in Rwanda in Musanze, Northern Province. It also announced the start of commercial production at the US$40m unit, according to the Rwanda New Times newspaper. It plans to ramp up production to 1.2Mt/yr by mid-2022. Germany-based Loesche installed a Loesche Jumbo CCG (Compact Cement Grinding plant) with type LM 30.2 mill at the site.

The cement plant is owned by Milbridge Holding, a group of companies involved in manufacturing and distribution of construction materials in Angola, the UAE, Rwanda and South Africa. It employs 110 workers directly.

Published in Global Cement News
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Update on Rwanda

22 July 2020

Rwanda’s newest cement grinding plant is set to start commissioning at a great time. Last week Milbridge Group subsidiary Prime Cement said that its 0.6Mt/yr grinding plant in Musanze, Northern Province was preparing to start up in August 2020. This week the main local producer, Cimerwa, announced that it was setting standardised cement prices in an attempt to control speculation in the market following a shortage. According to local press, spikes in prices have been caused by an urgent supply tender from the Ministry of Education, which has started a large-scale project to build over 20,000 classrooms. Prime Cement is unlikely to make a difference to this particular shortage but its timing is spot on.

Graph 1: Cement production capacity/population of East African countries. Source: Global Cement Magazine & Global Cement Directory 2020.

Graph 1: Cement production capacity/population of East African countries. Source: Global Cement Magazine & Global Cement Directory 2020.

Cement price surges in land-locked African countries crying out for construction materials are not new but it’s always illuminating to review how the situation is changing. Rwanda’s sole 0.6Mt/yr integrated plant is run by Cimerwa, a subsidiary of South Africa-based PPC, near Bugarama in the south-west of the country, close to the borders with Democratic Republic of the Congo (DRC) and Burundi. The new grinding plant is located in the north-west near the borders with DRC and Uganda. It will join another grinding plant run by Kenya’s ARM Cement at Kigali.

PPC’s operation in Rwanda has performed well in comparison to a poor market back home in South Africa. For its financial half year to September 2019 Cimerwa reported revenue growth of 28% year-on-year to US$31.2m due to a 20% increase in sales volumes. Earnings rose even more in percentage terms due to higher volumes and an improved cost per tonne performance, likely due to a debottlenecking project. More recently, PPC said that its operations in Rwanda were disrupted in April 2020 due to a coronavirus lockdown that started in late March 2020. It partially resumed operations in the second half of April 2020 with cement sales volumes for the month expected to be 15 - 20% of those in April 2019. The other point of note is that the Rwandan government was trying to sell its minority share in Cimerwa in mid-2019 but nothing has been publicly announced since then. However, Cimerwa was reported as being in the process of listing on the Rwanda Stock Exchange in May 2020.

Rwanda’s other grinding plant at Kigali has had problems with its parent company in Kenya. ARM Cement went into administration in mid-2018 and its assets have gradually been sold off since then amidst legal wrangling. It has also had ongoing operational issues with interrupted production due to clinker and coal shortages caused by import issues with Tanzania. An attempt to sell the 0.1Mt/yr grinding plant in September 2018 failed when an auction didn’t even reach one tenth of the estimated market value of US$1.4m. The plant was still reportedly on sale in May 2020.

The new Prime Cement grinding plant will have a production capacity of 0.6Mt/yr. It has been supplied by Germany-based Loesche, who installed a Loesche Jumbo CCG (Compact Cement Grinding plant) with mill type LM 30.2. The project has been reported to have a cost of around US$65m. A second phase was also mentioned at the time of the initial announcement that might include upgrading the grinding plant to a fully-integrated one at a later stage. Time will tell. In the meantime though it will be interesting to see whether the new plant has the same raw material issues that ARM’s Kigali Cement has had. One potential source of clinker is the integrated Hima Cement at Kasese in Uganda. Bamburi Cement reported in May 2020 that its Hima Cement subsidiary in Uganda was unable to ‘access’ the market in Rwanda in 2019 due to ongoing trade problems across the Rwanda-Uganda border.

Rwanda’s cement consumption has been reported to be 0.7Mt/yr so a new combined national production capacity of 1.4Mt/yr seems likely to create significant exports. Other countries in the region have also noticed what’s going on in Rwanda and want to do likewise. In June 2020 DRC’s Industry Minister Julien Paluku talked up plans of reviving the 0.3Mt/yr state-owned National Cement Plant (CINAT) in Kimpese. He noted that DRC has been partly reliant on cement produced by Cimerwa in Rwanda, which has been serving a combined demand of 900,000t/yr in DRC and Burundi.

A statistic that received a fresh airing this week was one from the World Bank in 2016 that worked out that the price of cement in Africa was on average 183% higher than the global average. It popped up in a news article about the expanding Nigerian cement industry but it applies to the whole continent. While it continues to hold true, exports will boom and plants will keep being built in the places that exports can’t reach.

Published in Analysis
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Prime Cement grinding plant in Rwanda due for commissioning in August 2020

14 July 2020

Rwanda: Milbridge Group subsidiary Prime Cement has said that its upcoming 0.6Mt/yr Prime Cement grinding plant in Musanze, Northern Province will enter production in August 2020. KT Press News has reported that the US$66.6m plant will create 600 jobs. Plant manager Eric Rutabana said, “We hope that with our coming to the market, the cement prices will be reviewed downward. Sincerely speaking, the existing price is beyond purchasing power on the local market.”

Published in Global Cement News
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Prime Cement starts building grinding plant in Rwanda

29 August 2018

Rwanda: Construction work has started on Prime Cement’s new grinding plant in Musanze District. The subsidiary of Milbridge Group plans to complete the unit by mid-2019, according to the New Times newspaper. The plant is expected to have a cement production capacity of 0.7Mt/yr, with plans to expands this to 1.2Mt/yr. Denmark’s FLSmidth signed a deal with Prime Cement in 2017 to supply equipment for the plant. Once finished the plant is expected to create 600 jobs.

Published in Global Cement News
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Prime Cement signs with FLSmidth to build plant in Rwanda

05 April 2017

Rwanda: Prime Cement has signed a deal with Denmark’s FLSmidth to build a US$65m cement grinding plant in Musanze District, Northern Province. Gisele Bayigamba, the general manager of Milbridge Holding, a consortium that owns Prime Cement, said that construction of the unit will start in the third quarter of 2018, according to the New Times newspaper. The plant will have a cement production capacity of 0.7Mt/yr once operational. The project is also expected to create over 1500 jobs. A proposed second phase to the project will add an integrated clinker plant within the next five years.

FlSmidth added that the contract will become effective when FLSmidth receives a down payment from the customer, which is expected to happen later in 2017. The order includes a OK(TM) 27-4 vertical mill for cement grinding, filters, a control system and plant automation, a packing plant and weighing and metering systems. FLSmidth will also supply equipment from other FLSmidth brands, such as a planetary mill gear unit from FLSmidth MAAG Gear, filters from FLSmidth Airtech, a control system and plant automation from FLSmidth Automation, a packing plant from FLSmidth Ventomatic and weighing and metering systems from FLSmidth Pfister.

Published in Global Cement News
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