Displaying items by tag: CIMAF

The news from Mali this week is that a new cement grinding plant is in the works. Ciments et Matériaux du Mali plans to build a 0.5Mt/yr plant near Bamako. Work on the US$34m project is set to start in October 2019 although there has been no word on the equipment supplier. The project is a long-standing one from France’s Vicat.

A new plant is probably very welcome following the last six months in the local market. Prices spiked by a third in May 2019, leading local producer Diamond Cement Mali to arrange a press conference to defend itself. Director Ibrahima Dibo explained that the company had fixed its prices in conjunction with the government at its units at Astro and Dio Gare since 2012. Instead, he blamed importers and traders for the situation, as well as low import rates from Senegal and Ivory Coast. The company proposed that it tackle the situation by importing more cement from one of its plants in Takoradi in Ghana and then transporting it into Mali via Dakar in Senegal. Although it noted that it would need permission from the government to do this.

The country has also been targeted by Nigeria’s Dangote Cement for several years. Back in 2016 the Nigerian cement producer was considering building a 1.5Mt/yr grinding plant. It also wanted to build a second production line at its Pout plant near Dakar in Senegal to export clinker specifically to Mali. It has since scaled back its expansion plans as the Nigerian economy entered a recession but in its 2018 annual report it noted that it had exported 0.43Mt of cement from Senegal and that most of this had gone to Mali, with plans to further increase exports in 2019.

At present Mali has three main grinding plants. Two are run by Diamond Cement and the third by Ciments de l'Afrique (CIMAF). An integrated plant at Guinbané, Diéma in the Kayes region was announced in late 2016 when the government signed a memorandum of understanding with Gaia Equity, a private equity company. This project was going to be built by China’s Sinoma.

Figure 1: Distribution of cement prices in Africa and Location of Plants 2015. Source: World Bank / ECDPM.

The status of that last project is unknown since there has been little news on it since. However, Figure 1 above shows why a private equity firm might sense opportunity. It’s out of date as various countries have become self-sufficient and we’ve covered this plenty of times before but the graphic from the World Bank really brings home the message that moving cement overland is uneconomical. This is mirrored by the mounting price of cement in Mali earlier this year. Africa has been described as the last great cement frontier and Mali is on the frontline.

Cameroon: Ciments de l'Afrique (CIMAF) has agreed with the Cameroon Investment Promotion Agency (CIPA) to invest US$33m in its integrated plant at Douala. The subsidiary of Morocco’s Addoha Group plans to triple the plant’s production capacity to 1.5Mt/yr, according to Business in Cameroon magazine. The unit was originally commissioned in 2014.

Gabon: Ciments de l’Afrique (CIMAF) Gabon has assured the government that it can increases national production to over 1Mt/yr from 0.65Mt/yr at present. Carmen Ndaot, the Minister of Industry, and other government representatives visited the CIMAF’s grinding plant as part of an assessment of a memorandum of understanding signed with the subsidiary of Morocco’s CIMAF, according to the L’Union newspaper. The company plans to spend Euro100m towards building a new plant. It is scheduled to be completed by mid-2021.

Guinea: Mamady Touré, the adminstrative and finance director of Ciments de l’Afrique (CIMAF) Guinea, says that the company plans to triple the production of its Dubréka grinding plant to 1.5Mt/yr. The announcement was made as part of a lunch for customers, according to Guinée News.

Ghana: The Cement Manufacturers Association of Ghana (CMAG) has appealed to the Ghana Standards Authority (GSA) to investigate the quality of Chinese cement imports. In a letter of the GSA George Dawson-Ahmoah cited two companies in Tema and Ejisu that allegedly sell cement products of ‘questionable’ quality, according to the Business and Financial Times newspaper. He also posited that samples of cement from these companies were ‘alarming’ and that this explained why their prices were ‘ridiculously’ low.

CMAG consists of Ghacem Limited, Diamond Cement group, CIMAF Ghana and CBI Ghana Limited. However, when asked by the local media why Chinese companies supplying Ghana were not part of the association, Dawson-Ahmoah said that they had been invited.

Gabon: Ciments de l’Afrique (CIMAF) Gabon’s sales have grown due to a ‘strong’ demand for cement following a ban of imports since July 2017. Its turnover grew by 37% year-on-year to US$22.8m in first half of 2018 from US$16.7m in the same period in 2017, according to Direct Infos Gabon. Its sales of cement rose by 42% to 0.18Mt from 0.13Mt. Its production also rose by 38% to 0.18Mt from 0.13Mt. Previously, the cement producer said it was planning to start a new production line at its Cimgabon integrated plant by November 2018.

Chad: Morocco’s Ciments de l’Afrique (CIMAF) has launched commercial operations at its new 0.5Mt/yr grinding plant at Lamadji. CIMAF regional director Hatim Kahttabi said that the production capcity of the unit is expandable to 1Mt/yr, according to Alwihda. The project had an investment of Euro35m and it has created 200 jobs.

Gabon: Morocco’s Ciments de l’Afrique (CIMAF) says it plans to start a new production line at its Cimgabon integrated plant by November 2018. The measure has been announced to meet a sudden surge in demand, according to the L’union newspaper. Cement prices have reportedly nearly doubled in the high construction season.

The cement producer first announced the new clinker production line in mid-2017. It will increase the plant’s production capacity to 0.85Mt/yr from 0.5Mt/yr at present. In addition the company has launched a Euro10m project for an admixture unit for completion by mid-2019.

Burkina Faso: A new cement plant project being built in Bobo-Dioulasso has drawn complaints from local residents and businesses. The unit is being built in an agricultural indstury section of the city and local companies fear that dust from plant might damage their products, according to the Le Pays newspaper. Food from the region is exported to Europe. Morocco’s Ciments de l'Afrique (CIMAF) announced that it had started building a grinding plant in Bobo-Dioulasso in mid-2016.

Ghana: The Cement Manufacturers Association of Ghana (CMAG) formally inaugurated itself at the start of July 2018. The association is intended to protect and accelerate the development of the industry, according to MyJoyOnline. Members of the association include Ghacem, Diamond Cement and Ciments de l’Afrique (CIMAF). In its constitution the association stated that it, “is not a cartel, but an umbrella body for cement manufacturers in the country.”

Raju Baddharaju, Diamond Cement, has been appointed as the first chairman of the association’s board. George Dawson-Ahmoah, Strategy & Corporate Affairs Director of Ghacem has been appointed as the executive secretary with effect from August 2018. Other members on the governing board include: Morten Gade-Member, Ghacem; Eugene Laryea-Member, Ghacem; N. Venkatesh-Member, Diamond Cement; Mohamed Bennis-Member, CIMAF; and Joseph Aboo-Member, CIMAF.

Previously, the Ghana Cement Manufacturers Association (GCMA) published its memorandum of understanding in 2015 with Ghacem and Diamond Cement as its founding members. Dawson-Ahmoah was the chairman of an interim executive body for the association.