Displaying items by tag: Tanzania
Tanzania: Huaxin Cement Tanzania Maweni Company has successfully commenced operations at its new Mavini plant. INPR News has reported that the plant will export cement to other countries. This will generate economic growth whilst also creating 1000 new jobs for local people, according to the company.
Huaxin Cement Tanzania Maweni Company commissions new clinker line at Maweni cement plant
05 February 2024Tanzania: Huaxin Cement Tanzania Maweni Company has commissioned a new 4000t/day clinker line at its Mavini cement plant, after completing the Phase 2 of the plant’s construction. China Industrial and Economic Information Database has reported that this phase of construction commenced in August 2022. The new line is equipped with a 15MW biomass-fired power plant.
During the 14th Five-Year Plan (2021 – 2025), Huaxin Cement aims to quadruple its production capacity outside of China to 16.5Mt/yr. 6.07Mt/yr-worth of this will come online in 2024 and 2025. The company says that its strategy partly reflects the slowing of its domestic market since 2022.
Tanzania Railways Corporation plans US$5.6bn railway line
05 December 2023Tanzania: Tanzania Railways Corporation has announced plans to build a 1000km railway across the south of the country, between Lake Nyasa and the Indian Ocean. Business News Africa has reported that the railway will serve Dangote Cement’s local operations, as well as businesses in other industries. The project will cost US$5.6bn, of which Tanzania Railways Corporation has already secured US$2.2bn in potential private investments.
Holcim to sell Hima Cement and Mbeya Cement
15 November 2023Tanzania/Uganda: Switzerland-based Holcim has signed agreements to sell Uganda-based Hima Cement and Tanzania-based Mbeya Cement. Local industrial conglomerate Sarrai Group will acquire Hima Cement for US$120m, while local oil importer Amsons Group will acquire Mbeya Cement for an undisclosed sum.
Holcim’s Asia, Middle East & Africa regional head Martin Kriegner said “These divestments advance our strategy to consolidate our leadership in core markets as the global leader in innovative and sustainable building solutions. With the Sarrai Group and Amsons Group, we are pleased to have found strategic and trusted partners who are best positioned to develop these businesses in the long term.”
Mbeya Cement to reshuffle corporate structure
08 November 2023Tanzania: Mbeya Cement plans to reform its board of directors and appoint a new chair. The measures are part of an agreement between the government and other shareholders, including Zambia-based Lafarge Cement. Daily News has reported that the government helped Mbeya Cement to pay off US$67.9m-worth of debt.
Holcim’s East and South Africa area manager Rajesh Surana said “It is another milestone as we today sign the agreement on behalf of other shareholders, aimed at ensuring that Mbeya Cement operates on profit to rebuild growth for improved performance.”
Tribunal nullifies latest Fair Competition Commission approval of Scancem’s acquisition of Tanga Cement
19 October 2023Tanzania: The Fair Competition Tribunal (FCT) lamented the ‘mischief prevailing in the market’ in a ruling nullifying the Fair Competition Commission (FCC)’s approval of Scancem International’s planned acquisition of a 68% stake in Tanga Cement, dated 28 February 2023. The Citizen newspaper has reported that the FCT granted the parties leave to apply for a review of its earlier decision of 23 September 2022, in which it initially rejected the attempted deal. In its latest judgment, the tribunal drew on principles from South African law to show that companies should be able to submit a new application within one year of rejection, provided there is a ‘substantial change’ of circumstances or market dynamics. The court added that no blame lay with the parties for having lodged their second attempted merger notification within such a timeframe.
Tanzania: The Tanzania Fair Competition Tribunal (FCT) has ruled that Heidelberg Materials subsidiary Scancem International cannot acquire Tanga Cement from AfriSam at present. The Fair Competition Committee had previously approved the acquisition to proceed in February 2023. In its latest ruling, the FCT found that the commission had not been within its powers to set aside a previous court ruling of the FCT, dated September 2022. The FCT acknowledged that the market situation may have changed since its first ruling, but underlined the need for legal procedure.
Judge Salma Maghimbi said “The act or conduct of the two respondents did not send a good message to the public, nor to potential investors who would have been interested in coming to invest in our country.”
Tanzanian government explains approval of acquisition of Tanga Cement by Heidelberg Materials
10 May 2023Tanzania: The government has defended its support for the acquisition of a majority stake in Tanga Cement by a subsidiary of Heidelberg Materials. In 2021 Scancem International, a subsidiary of Heidelberg Materials, agreed to buy a 68% share of Tanga Cement from AfriSam for around US$59m. The Fair Competition Commission (FCC) provisionally approved the deal but the Fair Competition Tribunal (FCT) blocked it in late 2022 following lobbying by Chalinze Cement and the Tanzania Consumer Advocacy Society on the grounds that it would potentially reduce market competition, according to the Citizen newspaper. However, Scancem International applied again to the FCC in December 2022 to push through the agreement. This motion was then approved in February 2023.
During a parliamentary debate on the issue in early May 2023 Ashatu Kijaji, the Minister for Industry and Trade, defended the decision to re-approve the deal on the grounds that the approved merger application was different from the one rejected by the FCT. However, other members of parliament were sceptical about the decision.
Huaxin Cement continues to grow revenue overseas in 2023
29 March 2023China: Huaxin Cement’s revenue fell by 6% year-on-year to US$4.43bn in 2022 from US$4.72bn in 2021. Its net profit decreased by 50% to US$393m from US$780m. Its sales volumes of cement and clinker declined by 20% to 75.3Mt and concrete sales volumes nearly doubled to 16.4Mm3. Despite flat cement demand the company expects a general domestic economic improvement, real estate market reforms and a focus on infrastructure to improve its fortunes in 2023.
During the reporting period the subsidiary of Switzerland-based Holcim started operating a 3000t/day production line at Nepal Narayani in early 2022 and commenced the second stage of a project to build a 4000t/day clinker line at Maweni in Tanzania in July 2022. Preparation work for a new clinker line project in Malawi also began. The company added that it has completed the investment and verification for ten additional projects in Africa, the Middle East and elsewhere in preparation of future business expansion. Overall, 13% of the group’s operating revenue derived from business outside of China in 2022 compared to 8% in 2021.
Kasanga port to expand capacity
29 March 2023Tanzania: Tanzania Ports Authority (TPA) plans to expand the capacity of the 54,000t/yr port of Kasanga on Lake Tanganyika in Rukwa Region. Mbeya Cement Company exports 42,000t/yr of cement via its terminal at the port to the Democratic Republic of Congo and Zambia. The port has been undergoing a US$1.92m upgrade to raise its berths due to rising water levels in Lake Tanganyika since April 2019.
The port of Kasanga generates revenues of US$34,200/yr for the TPA, primarily from Mbeya Cement Company’s export operations.