Displaying items by tag: Rwanda

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.

Rwanda: The Ministry of Trade, Industry and East African Affairs has said that the value of cement imports dropped by nearly half to US$42m in 2016 from US$80m in 2015. The development comes as the government looks for ways to strengthen capacity for local production to meet growing housing demand and reduce expenses on imports, according to the New Times newspaper. Local producer Cimerwa, a subsidiary of South Africa’s PPC, is currently building a new 0.6Mt/yr cement plant in Bugarama, Rusizi, that will be ready for production in mid-2018. It has also called for imports of cement to the country to be restricted.

Kenya: Bamburi Cement’s profit rose slightly to US$57.4m in 2016 from US$57.2m in 2015. Its operating profit rose by 8% to US$76.7m from US$70.9m. However, its turnover fell by 3% to US$371m from US$382m. It blamed the fall in turnover on high competition, particularly in the individual homebuilding market. It also reported a fall in sales volumes of cement although this was offset by infrastructure and contractor markets in Kenya, Uganda and Rwanda. The cement producer added that the cement grinding plants it is building in Kenya and with its subsidiary Hima Cement in Uganda are on schedule to be completed in mid-2018.

South Africa: PPC’s sales volumes have risen by 4% in South Africa and by 9% in Zimbabwe, Rwanda and Botswana collectively in the first nine months of 2016. The cement producer reported in a trading statement that its sales volumes in South Africa had risen overall but that its prices had fallen. It is planning price increases in selected regions in February 2017 in selected regions.

In Zimbabwe, the company saw a boost in cement sales following the commissioning of a mill in Msasa, Harare although it has faced liquidity challenges that made importing raw materials difficult. In Rwanda it has continued to ramp-up production and in Botswana sales have risen in the last quarter of 2016 due to sales promotions.

The cement producer also reported that the cement plant it is building in the Democratic Republic of the Congo was 95% complete in January 2017. Hot commissioning is due to start at the site in February 2017 and operational cement production anticipated to start in the second quarter of 2017. Operational cement production is also expected to start in the second quarter of 2017 at its project in Ethiopia. Finally, the company’s Slurry SK9 new kiln line in South Africa was reported as being 54% complete. Commissioning and ramp-up for the site is scheduled for the first half of 2018.

Rwanda: Bheki Mthembu has been appointed the chief executive officer of Cimerwa, PPC’s subsidiary in the country. Mthembu has been in post since December 2016, according to the Business Day newspaper. Mthembu holds a degree in chemistry from the University of KwaZulu-Natal. He has worked for PPC since 1995.

Rwanda: As part of efforts to promote consumption of ‘Made in Rwanda’ products, local cement manufacturer Cimerwa has launched a campaign in which more than 100 lucky winners will walk away with cash prizes worth a total of US$85,000. Busisiwe Legodi, the company chief executive officer, said the ‘Buy, Build & Win’ campaign would encourage Rwandans to buy locally-produced cement and enhance the competitiveness of the country's sole cement producer.

Rwanda: PPC says its 600,000t/yr Cimerwa cement plant in Bugarama, Rusizi will reach full production by mid-2018. The greenfield plant is part of its strategy to make 40% of its turnover from outside of South Africa by 2018, according to Business Daily. At present the plant is running at about 60% of its production capacity.

Cimerwa sales volumes have exceeded 100,000t from commissioning to February 2016. Further sales, marketing, and distribution efforts are expected to improve this. The plant sells cement domestically in Kigali and it exports to the Democratic Republic of Congo and Burundi.

PPC is growing cement production capacity in Africa with plants being built in the DRC, Ethiopia and Zimbabwe. Capacity is expected to reach 12.7Mt/yr in 2018 from 8.6Mt/yr in 2015.

Rwanda: The management of Cimerwa has asked that the government prioritise locally-made cement, according to the New Times. Despite opening a new cement plant in mid-2015 and cutting its prices, the local producer has found it difficult to sell its product despite growth in the construction sector.

"We recognise that while the regional market is large enough for everybody, as local company, and as Rwandan consumers, we all have a duty to contribute to the economy by consuming locally-produced goods and services in order to reduce Rwanda's import bill and build local businesses," said Busisiwe Legodi, the chief executive officer of Cimerwa. The company is also considering setting up depots across Rwanda to further cut its prices.

South Africa: PPC has reported that its cement sales fell by 3% for its first trading that ran from October to December 2015. Cement sales in its South African business declined by 1.6% while its international businesses recorded an 8% decline, according to a trading update.

The South African cement producer reported that coastal regions in South Africa achieved positive volume growth. However this was offset by declines recorded in Gauteng and inland regions. During this period, average selling prices fell by 4%.

In Zimbabwe the completion of major infrastructure projects in Zimbabwe has led to declines of over 10% in local sales. Cement exports have also reduced due to exchange rate effects. In Botswana cement sales fell due to competition and weak demand. In Rwanda sales fell due to high rainfall and limited exports. However, the company's new 0.6Mt/yr cement plant was reported to be performing 'satisfactorily' and the kiln has passed its performance test for output and heat consumption.

Rwanda: PPC has commissioned its 600,000t/yr cement plant in Rwanda to offset declining sales in South Africa as its expansion into African cement markets gathers pace. The company plans to derive 40% of its revenues from the rest of Africa by 2017.

"We see the population doubling and becoming wealthier, a lot of infrastructure spend taking place and new cities being built that aren't there today," said Darryll Castle, PPC's Chief Executive. "If we can maintain our market share and exposure in Africa, we have to double the size of the business in well under 10 years. We see Africa as a very positive environment and PPC becoming a major player in a big growth area."

Castle said that the company ultimately saw PPC as a global player, but were focusing on Africa first, although it would be open to global opportunities when they arose. The new vision is for PPC to become a world-class supplier of materials and solutions to the basic services sector and establish a vertically-integrated materials business. This business unit will house PPC's ready-mix, aggregates and related building materials businesses to offer clients end-to-end solutions. A bolt-on acquisition has been earmarked for early 2016. Castle stressed that 70 – 80% of PPC's focus would remain on its core product of cement, but over time it would gain earnings and revenue that was not currently core to its business.

According to Castle, construction of the US$280m, 1Mt/yr cement plant in the Democratic Republic of Congo and the US$85m, 700,000t/yr mill in Harare were progressing well, with both on track for commissioning at the end of 2016. He said that the 1.4Mt/yr cement plant in Ethiopia would cost around US$170m, with commissioning scheduled for the second quarter of 2017.