Displaying items by tag: Rwanda
PPC commissions 600,000t/yr cement plant in Rwanda
20 November 2015Rwanda: 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.
Rwanda delists Kilimanjaro Cement from preferential treatment
03 November 2015Rwanda: Rwanda has delisted Kilimanjaro Cement produced by Amson's Tanzania Ltd from preferential treatment as part of its anti-dumping campaign to check external competition threatening the domestic market. However, Tanzania Ltd has appealed to the East African Community (EAC) committee on non-tariff barriers against the decision on Rwanda.
Rwanda, once a net importer of cement, is slowly building production capacity among local cement makers. Cimerwa and Kigali Cement have increased production capacity and will soon be able to supply local demand and also position the country to start exporting cement. Kilimanjaro Cement now attracts a 25% import duty like other goods imported from outside the EAC and the Common Market for Eastern and Southern Africa (COMESA).
Rwandan officials have alleged that Kilimanjaro Cement is imported from Pakistan and repackaged in local bags and so is not qualified to be treated as manufactured within the region. William Musoni, Commissioner Customs Services at the Rwanda Revenue Authority, said that before the government blacklisted Kilimanjaro cement, they had jointly carried out investigations with officials from the EAC Secretariat that confirmed that some of the cement exported from Tanzania is repackaged.
Cimerwa inaugurates new cement plant in Rwanda
20 August 2015Rwanda: Rwanda's only cement manufacturer, Cimerwa, has inaugurated its new US$170m, 500,000t/yr capacity cement plant in Muganza, Rusizi. Its current plant produces 100,000t/yr.
Increasing production capacity makes it possible for the plant to export up to 30% of its total production to other countries, such as the Democratic Republic of Congo and Burundi. This is expected to drive sustainable economic development and poverty reduction. Exporting cement to neighbouring countries means that Rwanda will be able to reduce its trade deficit gap with at least an additional US$92m/yr in foreign revenues, according to the National Bank of Rwanda (BNR).
Rwanda's current cement demand is estimated at about 450,000t/yr. However, demand across the borders in the Democratic Republic of Congo and Burundi is more than 900,000t/yr.
Legodi Busisiwe, the CEO of Cimerwa, said that the new plant would play a critical role in enhancing competitiveness of the local construction sector through reduced logistical costs. "The new plant seeks to bring on board high quality products that will help boost capacity of the country's infrastructure," he said.
The new plant comes at a time when the Government is trying to narrow the country's trade deficit gap by boosting its exports to the tune of at least 28%/yr. The country's trade deficit improved by 6% from US$723m in 2014 to US$6.78bn during the first five months of 2015. There is hope that cement exports could further narrow this gap.
There is hope among market players that increasing cement production will reduce the high prices of Cimerwa cement in the country. Ephraim Karekezi, a Kigali-based engineer, believes that the new plant will help bring down cement prices. "The cost of construction is high simply because of high prices of raw materials, including cement. Therefore, the new cement plant offers sector players the green light in addressing the question of affordability and propelling the sector towards economic excellence," said Karekezi.
Cimerwa dry cement plant up-and-running
16 July 2015Rwanda: Cimerwa has officially unveiled its new 0.6Mt/yr dry process cement plant. It hopes that the new technology will help it to reduce its production costs and better compete with imported cement from Rwanda's neighbours. The plant previously relied on wet process technology.
Cimerwa has also installed a 15MW peat-powered power plant, which will help it address unreliable electrical supplies that have caused it to suffer high production costs for many years.
Cimerwa launches new corporate identity brand
12 May 2015Rwanda: Cimerwa has unveiled its new corporate identity and product packaging. The new identity uses bold blue 32.5 bags and bright red 42.5 bags.
"We have moved from the previous green to a bold blue reflecting the refreshing nature of the business as we go through a rebirth and repositioning of Cimerwa. The previous logo was a closed diamond; the new logo is open, symbolising the bright future of the company and the journey we will be making together towards the top," said Legodi Busisiwe, Cimerwa CEO.
Cimerwa is finalising work on its new state-of-the-art production facility in Bugarama, Rusizi. The plant, which will boost Cimerwa's manufacturing capacity by six times, will commence production early in the second half of 2015. When fully operational, the plant's production capacity will increase from the current 100,000t/yr to 600,000t/yr.
Legodi said that construction of the plant in Bugarama is now complete and is undergoing structured tests in line with global best practice in the cement manufacturing sector. "The testing phase, which is the most important in preparing the plant for production, will take at least two months. Our aim is to certify that the new plant operates efficiently and effectively when it is running fully and produce a quality cement to meet Rwanda's growing demand," said Busisiwe.
According to Francois Kanimba, the minister for trade and industry, Rwanda's industrial and construction sectors are expected to register strong performances by the end of 2015. "Construction and real estate are key sectors and potential major drivers of future economic growth in Rwanda, mainly due to the high demand for residential and commercial buildings," said Kanimba. "Statistics from the Rwanda Development Board puts total housing needs in Kigali alone at 458,265 dwelling units. The government is keen to develop home-grown industries that will offer locally-made, world class products and, in the process, reduce the large bill we spend on imports."
Cimerwa to increase cement production by 500,000t/yr
03 November 2014Rwanda: Rwanda's sole cement producer, Cimerwa, plans to increase its production capacity to 600,000t/yr when ongoing expansion works are completed early in 2015, according to Busi Legodi, Cimerwa's CEO. Legodi said that over 94% of the US$170m works have already been completed, with electrical installations and some minimal mechanical works remaining.
"The plant should be ready by the end of the first quarter of 2015," said Legodi. "Once completed, our production capacity will increase from the current 100,000t/yr of cement to 600,000t/yr." Market demand for cement currently stands at about 500,000t/yr and the country depends mostly on imports.
Meanwhile, Cimera has rebranded its corporate identity as it marks 13 years of existence. According to Sam Kasule, the Cimerwa commercial manager, the new corporate identity reflects the direction the firm is headed.
"Our new corporate identity is significant and suits the company's future plans and business focus as we look to expand our production capacity in coming months. We are also looking at growing our external markets in the Democratic Republic of Congo and Burundi," said Kasule.
He noted that the firm would also deepen its corporate social investment programmes, thanks to partnership with its strategic investor PPC, to deliver technical expertise, ensure sustainable production and meet market demand.
Savannah Cement focuses on East Africa
22 October 2014Kenya: Savannah Cement has confirmed on-going plans to include the East African market as part of its regional integration support project. The regional market development project is based on a commitment to pursue sales opportunities in all East African countries by 2015, according to managing director Ronald Ndegwa. He added that plans to appoint local dealers in Rwanda and Burundi are at an advanced stage.
Savannah Cement has good market performance in the Kenya, Uganda, Tanzania and South Sudan markets. In Tanzania it has expanded its market reach by retaining in-country dealers in Arusha and Mwanza to cover the country's inland cement demand.
"Savannah Cement's overall corporate development is anchored on a regional market coverage strategy and we are glad that we have made good inroads in the respective East African markets," Ndegwa said. "With our current installed production capacity of about 1.5Mt/yr, we are well placed to meet regional demand." The company is also considering doubling its current production capacity to meet demand.
Ndegwa disclosed that Savannah Cement is lining up development projects valued at more than US$300m, including an investment plan to establish a clinker manufacturing facility and to commission its second grinding plant.
Economic slowdown hurting cement production
15 September 2014South Africa: PPC has warned that slower economic growth and falling infrastructure spending has led to a 'particularly tough' domestic market. Low single-digit volume declines across Africa's second-biggest economy were partly offset by higher sales prices in the 10 months to July 2014. South Africa's economy is forecast to grow at the slowest pace since the 2009 recession in 2014 after strikes in the platinum mining and metalworkers industries hurt output.
Meanwhile, a new plant in Rwanda is expected to be commissioned early 2015 as PPC seeks growth opportunities in other markets. Indeed, PPC is expanding in several other African countries, including Rwanda, Zimbabwe and Ethiopia, as demand for cement grows in sub-Saharan Africa. It is targeting 40% of sales outside South Africa by 2017, compared with 26% in the six months to March 2014.
ARM Cement acquires Kigali Cement
03 July 2014Kenya: Kenya's ARM Cement has completed the acquisition of Rwanda's Kigali Cement as it continues expanding its East African market.
ARM, which has held a 35% stake in the only privately-owned cement company in Rwanda since 2011, Kigali Cement, bought out the remaining 65% stake held by various shareholders to take complete control of the firm. The deal was finalised in April 2014. Kigali Cement, which had US$1.9m in net assets in 2013, has a cement production capacity of 100,000t/yr, which is expected to increase with further ARM investments.
"We finally acquired a 100% equity stake and full control of our Rwanda grinding plant," said ARM's chairman, Rick Ashley. He added that ARM also plans to increase its capacity and market share using its flagship brand, Rhino Cement.
The value of the deal was not disclosed, but it is estimated to cost over US$1.2m based on Kigali Cement's net asset value. The purchase will be financed by banks, according to Pradeep Paunrana, ARM's chief executive.
The acquisition is part of ARM's expansion plans, which seeks to improve sales in Rwanda and neighbouring markets. ARM will leverage on its new acquisition to expand its production and distribution network in East Africa. Ashley said that ARM will seek further measures to increase its market presence in Kenya, East Africa's largest economy, as well as Rwanda and Tanzania, completing ongoing projects and focusing on new markets in the region.
ARM is expected to commission Tanzania's Tanga plant, which holds a production capacity of 1.2Mt/yr of cement, in the fourth quarter of 2014. It will also start construction of its US$300m Kitui plant in Kenya in October 2014.
Rwanda: South Africa's PPC has said that it will begin the commissioning of its 0.60Mt/yr cement plant in Rwanda by the end of 2014, while construction of new plants in the Democratic Republic of Congo (DCCR), Zimbabwe and Ethiopia continues.