Displaying items by tag: Ethiopia
Africa: Chief Executive Officer at Dangote Cement, Devakumar Edwin said that the company plans to start operations in Sierra Leone, Cameroon and Zambia in 2014. Dangote, which has a production capacity of 20.3Mt/yr in Nigeria, also intends to add 9Mt/yr to production in Nigeria by the end of 2014.
Edwin said that Dangote is currently reviewing its operations in Kenya in light of the discovery of limestone deposits in the country. Dangote plans to increase the capacity of its proposed plant in Kenya from 1.5Mt/yr to 3.0Mt/yr.
"In Ethiopia, work is well underway to build 2.5Mt/yr plant at Mugher, with commissioning expected late in 2014. In Tanzania, we have begun work on a 3Mt/yr plant at Mtwara that will be operational in 2015. In Zambia, work is underway on a 1.5Mt/yr plant at Ndola with cement production expected in the second half of 2014," said Edwin.
The bid to expand is part of the company's long-term expansion strategy across the continent. Dangote has three plants in Nigeria and plans to expand into 13 other African nations, bringing its total capacity to more than 60Mt/yr by 2016. Edwin added that the company is stalling its business plan in South Sudan 'because of military conflict in that nation.'
Dangote recorded a turnover of US$2.3bn in the 2013 financial year, up by 29.4% from US$1.8bn in 2012. Profit before tax was US$1.18bn, compared with US$836m in 2012, while profit after tax rose to US$1.24bn, a 38.73% increase when compared to US$899m recorded in the same period of 2012.
Development Bank of Ethiopia signs US$33m loan agreement with Habesha Cement to build plant
11 December 2013Ethiopia: The Development Bank of Ethiopia (DBE) has signed a loan agreement with Habesha Cement for US$33m to build a 1.4Mt/yr cement plant at Holeta in Oromia State. Additional loan agreements were also signed in late November 2013 between Habesha, the DBE and the Preferential Trade Area (PTA) Bank, the financial arm of the Common Market for Eastern & Southern Africa (COMESA). The PTA Bank is co-financing the Habesha project by lending US$50m.
According to Addis Fortune, Habesha is now seeking a letter of credit to allow equipment for the cement plant to be imported. Chinese engineering firm Northern Heavy Machinery Industries have been hired to import and erect machinery for US$80m.
Previously the DBE approved a loan for US$83m to cover 70% of the project costs but it withdrew the offer in early 2013. The current DBE loan only covers 30% of the project costs. Other investors, including PPC and South Africa's Industrial Development Corporation (SAIDC) paid US$21m for nearly half of Habesha Cement in 2012. The plant was originally scheduled to start production by 2012.
Al-Amoudi to build two cement plants in Ethiopia
04 December 2013Ethiopia: Mohammed al-Amoudi, the biggest private investor in Ethiopia, plans to build two cement plants in the country due to an 'improving investment environment'. Al-Amoudi said that the new plants would join the US$351m Derba Midroc cement plant that opened in December 2011. Al-Amoudi announced in March 2012 that he intends to invest US$3.4bn in Ethiopia in 2014 – 2016.
Nigeria: Dangote Cement intends to reach a total cement production capacity of 50Mt/yr by 2016 which will make it Africa's largest cement producer. The company's chief executive, DVG Edwin, summarised production projects by the Nigeria-based cement producer: "Our plant in Senegal will soon be producing cement and our South African venture, Sephaku Cement, is well on track to open in early 2014. These two plants will be our first production ventures outside Nigeria as we aim to become Africa's leading supplier of cement," said Edwin.
Edwin revealed that construction work is underway at Mugher, Ethiopia for a 2.5Mt/yr cement plant. Operation is scheduled to begin in October 2015 at a 3Mt/yr gas-fired plant in Mtwara, Tanzania. Cement production is expected to start in mid-2014 at a 1.5Mt/yr in Ndola, Zambia. In Cameroon a 1.5Mt/yr grinding plant will be completed in the first half of 2014 and an integrated 1.5Mt/yr cement plant is expected to begin production in the second quarter of 2016. A 1.5Mt/yr cement plant in South Sudan and a 1.5Mt/yr integrated cement plant in Kenya are both set to become operational in 2016.
Along the coast of West Africa Dangote nears completion of import facilities to receive and bag bulk cement produced in Nigeria and Senegal. Additional import facilities in Sierra Leone are due to begin by the end of 2013 or early 2014.
In Liberia Edwin said that the order for equipment has been made for an import facility in Freeport Monrovia. Imports into Liberia are expected to commence in early 2015. The company plans to build a 1.5Mt/yr grinding plant in Abidjan, Ivory Coast, with operations projected to begin in early 2015. In Ghana, the company plans to open 1.5Mt/yr grinding plants in Tema and Takoradi by early 2015. Finally, Dangote cement has recently announced its intention to build an integrated 1.5Mt/yr plant in Niger.
A TEC supplies equipment for Messebo Building Materials Production
06 November 2013Ethiopia: A TEC has released progress information on contracts to provide an alternative fuel system, which can process sesame straw and stalks, and a cement big-bag filling station for Messebo Building Materials Production in Mekelle. Both commissions were awarded in the first quarter of 2013 and local manufacturing and the erection will be performed by Mesfin Industrial Engineering PLC, a sister company of Messebo.
Installation of the alternative fuels system will start in the fourth quarter of 2013 with a planned start-up in the first quarter of 2014. Collection and preparation of straw and the production of bales will take place at Kafta Humera. The first phase of the project includes building a baling capacity of 50t/hr and an alternative fuel feeding capacity to the calciner of 10t/hr at the cement plant in Mekelle. A future upgrade, phase two, will scale the system up to a baling capacity of 71t/hr and an alternative fuel feeding capacity of 20t/hr.
The new station for big-bag filling will be installed at the cement plant in Mekelle. The system will consist of three filling stations in modular design. Each station can handle 15 bags/hr. A total number of 45 big-bags/hr with an overall capacity of 90t/hr can be reached. The big-bag filling station will be installed and commissioned at the end of 2013.
Ethiopia – Failing to launch?
14 August 2013In the January 2013 issue of Global Cement Magazine, we featured a review of the Ethiopian cement industry. At the time we were hopeful with respect to the country's future cement demand, buoyed along by Ethiopia's own bold targets for development of the sector. It seemed only a matter of time before international and regional producers went to Ethiopia and cashed in on a cement plant-building bonanza.
Ethiopia's government is keen to further develop Ethiopia's cities and infrastructure and wants to increase its per-capita cement consumption from 35kg/yr at present to ~300kg/yr in the period to 2017. To do this, it is encouraging the cement sector to swell from its current capacity (7.4Mt/yr integrated capacity with additional grinding capability) to over 27Mt/yr by the same year. At the same time, the country has banned cement imports, a bold statement of intent designed to protect its own growing industry.
This week, we have learned that the country is hitting its bold production targets, largely without assistance from outside players. However, it seems that Ethiopia is incapable of consuming the volumes of cement that have been produced. As of 12 August 2013, the Ministry of Industry announced that Ethiopia made 12Mt of cement in the year to 7 July 2013, more than double the 5.4Mt/yr that it demanded over the same period. This revelation casts the government's future predictions for rapid cement demand growth in serious doubt.
While it takes effort to picture Ethiopia producing 27Mt/yr of cement by 2017, such rapid development is happening in west Africa, where Nigeria's Dangote Cement is achieving 'regional-giant' status.
However, it would take a very great leap of imagination to believe that Ethiopia could consume 27Mt/yr in 2017, five times what it does today, even with the development of major projects like the Millennium Renaissance Dam (a US$4.2bn hydroelectric project), major city and road-building projects and a rapidly growing population. Its cement capacity would have to grow by 4.9Mt/yr, representing average year-on-year cement demand growth of 52.5%/yr. Even with a cement industry the size of Ethiopia's, this represents almost impossible growth. To support this increase in demand, GDP/capita, which is often closely correlated to cement demand, would probably also have to raise fivefold, from US$374 to US$1870. This difference would take it from the bottom 20% of African nations well into the top third by this measure.
If this over-production trend continues, it does not bode well for Ethiopia's domestic cement industry. While exports may appear attractive, options are limited. Kenya to the south has a larger and more well-established cement industry, Somalia has major economic and security drawbacks and Ethiopia's relationships with Eritrea and Djibouti, both of which declared independence from Ethiopia, are tense. With no coast of its own, maritime exports will be difficult, especially with low-cost cement flowing from India, Pakistan and Iran. South Sudan, with its lack of cement production facilities, plentiful oil and major trade/border dispute with Sudan, could offer a small market for Ethiopian exports, but not enough to satisfy a ~20Mt/yr overcapacity.
Read Global Cement's January 2013 review of the Ethiopian cement industry here.
Ethiopia overestimates cement demand in 2012 - 2013
13 August 2013Ethiopia: Ethiopia has produced 12Mt of cement, double its domestic demand, in the fiscal year that ended on 7 July 2013, according to a report released by Ministry of Industry (MoI). The country's current domestic demand for cement is estimated to be around 5.4Mt/yr.
The government expected a significant rise in cement demand in its Growth & Transformation Plan (GTP) that plans for per capita consumption of cement to increase from 35kg to 300kg. It had predicted that the demand would grow to 27Mt/yr, exceeding the 12Mt/yr cement production capacity of the country's 18 plants in the 2014 – 2015 fiscal year.
Ethiopia: Tamiru Wondimagegn has been appointed as board chairman of Habesha Cement. He is a prominent lawyer and board member of Habesha Cement. He succeeds Gizaw Teklemariam, who previously worked in the oldest state owned cement factory, Mugher.
Habesha held elections for its board in late January 2013, following a reduction in board places from 12 to nine. The Ethiopian cement producer has also given three board of directors seats to two South African companies, International Development Corporation and Pretoria Portland Cement, which are credited for bringing in 49% equity to Habesha.
Loesche announces orders for Sinoma and Dangote in Africa
13 February 2013Nigeria: German vertical roller mill (VRM) producer Loesche GmbH has been awarded a contract for five new VRMs from China's Sinoma International Engineering, which is building a two kiln extension to the existing Dangote Cement Ibese plant. Loesche previously delivered equipment for the first and second lines at the same plant.
The five VRMs to be supplied are two 450t/hr Loesche Mill Type LM69.9 mills for raw material and three 310t/hr cement LM 63.3+3C cement mills. As with previous work at Ibese, the high moisture of the material of up to 20%, the sticky nature of the raw material and the low grindability of the raw material represent special challenges for the project.
In addition to the mills and the mill motors, Loesche will deliver metal detectors and hopper discharge feeders. The supply of the equipment will be split between Loesche, which is supplying key parts, and a Chinese-manufactured portion arranged by Sinoma International under supervision of Loesche. Delivery is scheduled at the end of 2013.
Ethiopia: Sinoma has also announced that it has contracted Loesche as the sole supplier of grinding technology for the construction of the Menagasha grinding plant, which is being constructed by Dangote. Delivery will be in early 2014.
Four Loesche mills will be included in the process; a 450t/hr LM 69.6 for raw material grinding, a 50t/hr LM 28.3D for coal grinding and two LM53.3+3C mills will be used for grinding clinker additives such as gypsum, limestone and pumice.
In addition to the mills and the mill motors, Loesche will deliver metal detectors and mill rotary feeders. The supply is a split-up of Loesche key parts and a Chinese manufactured portion arranged by Sinoma International under supervision of Loesche.
Both the plant elevation of 2600m above sea level and the very poor grindability of the cement raw material represents a special challenge for the layout of the grinding equipment in this case.
Bank withdraws from loan agreement with Habesha Cement
06 February 2013Ethiopia: The Development Bank of Ethiopia has withdrawn from a US$82.8m loan agreement made with Habesha Cement. In September 2011 the bank approved the loan which was expected to cover over 70% of the financing of the proposed cement factory.
The bank withdrew from the arrangement on the basis of its inability to disburse money at this time. In addition, it also pulled out of the loan commitments to five other companies citing similar reasons. According to sources, the bank has pledged to help the companies in their search for foreign financing.
In July 2012 PPC (Pretoria Portland Cement) and South Africa's Industrial Development Corporation (SAIDC) paid US$21m for nearly half of Habesha Cement. PPC acquired 27% of the Ethiopian cement factory by paying US$12m in cash and the state owned SAIDC paid US$9m for an additional 20%.