Ethiopia’s plan to enhance cement production to meet domestic demand has been successful according to Mekonnen Manyazewal, Minister of Industry at the inauguration of the third cement line of Mugher Cement Enterprise on Saturday.
The third cement line was built at a cost of 138.3 million US dollars has the potential production capacity of 3,000 tons of clinker daily and a total of 1.4 million tons of cement every year.
There are currently 22 cement projects underway expected to enhance cement production noted Mekonnen.The project had been delayed because of holdups in financing said Mekonnen Zergaw, Chief Executive Officer of Mugher.
90 million US dollars of the total project investment of 138.3 million US dollars was secured by a loan facilitated by the Commercial Bank of Ethiopia from the Export-Import Bank of China he noted.
The balance of the project finance was raised through a loan from the Industrial Development Fund according to Mekonnen.
It is expected that the expansion project under way will account for a 150% increase or 2.2 million tons on the existing production capacity of Mugher when it is fully operational explained Mekonnen.
It is to be remembered that the price of cement on the retail market in Ethiopia has seen a 20% increase following months of persistent decline.
The increase could be related with Mugher Cement, one of the largest cement producers, closing its factory for maintenance according to sources. With the factory being closed for maintenance retailers are taking advantage of the decrease in supply claimed Mugher officials.
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