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Dangote Cement begins trial production in Ethiopia 02 June 2015
Ethiopia: Dangote Cement, which entered the cement sector in Ethiopia with an investment of US$600m, began trial cement production at its new 2.5Mt/yr capacity plant in May 2015. The plant, which received its licence from the Ethiopia Investment Commission on 8 September 2008, is located at Muger in Adebern Wereda, Oromia. Dangote has started work with 1000 employees.
Dangote Cement has imported 1.2m packaging bags from Egypt, with more to be imported soon. Twenty-three heavy trucks imported for transport have also arrived at the port in Djibouti, with a duty free privilege provided by the government to the company, said Mesfin Abera, Dangote's sales and marketing manager in Ethiopia. The company will import a total of 600 trucks.
According to data obtained from the Ministry of Industry's Cement & Related Industry Development Institute, cement demand in Ethiopia is expected to reach 10.6Mt/yr in 2017.
Namibia: Namibia's sole cement manufacturer, Ohorongo Cement, has said that 2015 has thus far seen tremendous results compared to all of its previous years. It started production in 2011.
Managing director Hans-Wilhelm Schutte attributed the much-improved performance to an increase in infrastructure projects by both the government and the private sector, as well as export inroads made in neighbouring countries. Schutte admitted that initial sales were 'extremely tough,' but was quick to add that the plant, which cost US$203m, has been running perfectly since comissioning and expects both local and regional sales to grow.
"Since 2011 we have improved significantly. Towards the second half of 2013 things really started picking up and 2014 saw us doing really well in terms of sales," said Schutte. He noted that large infrastructure projects such as NamPort's port expansion and the Neckartal dam have made notable contributions to Ohorongo's performance.
Zimbabwe: Over 600 families in Masvingo are set to be displaced to make room for a new cement plant. The displacement follows the discovery of rich limestone deposits in the area and about 16 villages will be affected. Initially, 200 villagers are expected to be employed at the plant.
Masvingo Rural District Council CEO Martin Mubviro said that they had signed a Memorandum of Understanding with a company that wanted to invest in the venture, Xhing Xhong Cement Company. "I can confirm that we've agreed with an investor who wants to establish a cement plant. We have signed a Memorandum of Understanding with the investor and it is now left to them to start the project. Close to 600 families may be affected, although the exact number of those to be moved will be ascertained after feasibility studies are complete. The land where they should be resettled is yet to be identified," said Mubviro.
He said that major infrastructural improvements around Masvingo would be made once operations begin. "While some villagers will feel aggrieved to be moved from their original homes, there is a bigger picture of employment as many unemployed youths are going to get jobs," said Mubviro. "The plant will also add value to the province's economy through infrastructural development. People in this province will also get their cement for building nearer, so too will businesspeople who deal in building materials. Thus it will have an effect on prices of cement."
Pakistan: The Pakistan government is working on two options to challenge South African anti-dumping duties on Pakistani exports of cement. The first step will be to hold bilateral consultations with the South African government to resolve the anti-dumping duties favourably. Failing that, then the Pakistan government has the option to take the issue to the Geneva-based World Trade Organisation (WTO), according to an official from the Pakistan National Tariff Commission (NTC).
The International Trade Administration Commission of South Africa (ITAC) imposed provisional anti-dumping duties of 14.3 – 77.2% on Portland Cement originating in or imported from Pakistan from 15 May 2015 for six months. The duty was imposed on bagged cement.
According to local media, Lucky Cement, the major supplier to South Africa with a 55% market share, seems to have had sales volumes little affected by the anit-dumping measure due to its low duty. However, Attock Pakistan, the second largest supplier with a 35% market share, has been the worst hit due to its high anti-dumping duty. Pakistani cement exporters are exploring other markets in southern Africa.
Philippines: Eagle Cement plans to build its production capacity with an investment of US$1.2bn. Owner Ramon S Ang revealed to local media that he intends to build two new 2Mt/yr cement plants at Cebu and Davao in 2015. In addition the company is also adding one more line with a 2Mt/yr production capacity to its existing cement facility in San Ildefonso, Bulacan.
"We are now finishing the second line and preparing to put up a third line. With the third Eagle line, it will be even bigger than the asset being sold by Lafarge," said Ang. Upon completion of the third line, the Bulacan plant will have a production capacity of 6Mt/yr. According to Ang, each cement line with a 2Mt/yr capacity costs US$400m.
Eagle Cement produces and distributes cement under the brands Eagle Cement Advance and Eagle Cement Strongcem.
San Miguel Corp, the Manilla based multinational for which Ang serves as president, formally entered the cement business in 2013 when it paid US$78.6m for a 35% stake in Northern Cement. The cement company with a production facility in Pangasinan has a capacity of 2Mt/yr.