ETHIOPIA: Dangote Cement To Commission $480m Factory

In furtherance of its expansion plan in African countries, leading Cement manufacturers, Dangote Cement Plc, will next week Thursday, commission its 2.5million mtpa cement plant in Ethiopia, as the company inches towards the mark of 40million mtpa total production capacity globally before the end of 2015.

Located in Mugher District, the Prime Minister of the Federal Democratic Republic of Ethiopia, Mr. Haile Mariam Desalegne, is expected to perform the opening ceremony, at an event that will be graced by top members of Nigeria business community.

A statement from the Dangote Group, indicated that the government and the people of Ethiopia are excited about the timely completion of the project and the economic prospects of having such a huge company in that area of the country.

An invitation letter sent by the Dangote Cement to the Chief Executive Officer of one of the commercial banks, showed that Nigerian guests would be flown to Ethiopia next week Wednesday, June 3, to witness the event on Thursday, June 5, and would be brought back to Nigeria on Friday, June 6.

The Dangote Cement plant, said to be the single largest investment by an African, will be the fifth in the series of the offshore plants of the company that have rolled out cement within the last one year in African continent, coming after Senegal, Cameroon, South Africa and Zambia.

Nine other countries are on the card as the cement plants are in various stages of construction.

The company is investing $5 billion to build an African cement empire, with factories plants in 14 African countries.

Recently, its $300 million Greenfield cement plant in Senegal, rolled products into the market with the Senegalese government promising all assistance for Dangote Cement to perform maximally as its entry into the Senegal has stirred up economic activities.

Nigeria Ambassador to Senegal and Mauritania, said “I am very proud of what Dangote is doing by promoting intra -African investments, promoting regional development, industrialisation and cohesion among African nations with his investments. We need more Africans like Dangote to be at the forefront of promoting intra- African investments,” she stated.

According to her, Dangote Cement had done Nigeria proud with the commencement of production and that she was happy that Dangote Cement has been instantly accepted in the marker because of the high quality grade.

Senegal Director of Mines, Ousmane Cisse, lauded the doggedness of the Chairman of Dangote Cement, Aliko Dangote, to have seen the plant through despite various setbacks.

“Dangote Cement is a great project for the country and the consumers. We expect that the investments will not only make high quality cement available to our people, it will increase the purchasing power of consumers to help the country develop more and more.

“As a government, we look forward to get more revenue from the sector, and for our local communities surrounding the plant, more jobs that will reduce poverty and generate more upstream and downstream activities. Our SMEs will be developed and the multiplier effects on our industries, the government and to all stakeholders will be beneficial,” he stated.

ZAMBIA: DANGOTE ROARS TO LIFE

THE US$400 million Dangote cement factory in Masaiti has commenced operations following the completion of construction early this year.

The plant has rekindled hope of further poverty reduction in the area, because it joins other cement and lime industry companies in the area that continue to offer jobs to locals.

Dangote Cement operations director Anand Kameshwar said in an interview recently that work on the plant had been completed and it was already working ahead of commissioning which will be done soon.

“We have commenced production and the commissioning will be done as soon as necessary logistics are put in place,” he said.

The company is a subsidiary of Dangote Group of Companies which is owned by Africa’s wealthiest man Aliko Dangote.

It engaged Simoma International Engineering, Rockseed Engineering and Ayoki Fabricon Limited during the four-year construction period.

The cement plant, which has an installed capacity to produce 1.5 million tonnes of cement per annum, has been equipped with a 30 Mega Watt power plant.

The power plant was put up at a cost of $50 million to ensure uninterrupted supply and relieve pressure off Zesco.

The coming up of Dangote brings the total number of Cement factories in the area to three, following the current operations of Zambezi Portland and Lafarge Cement.

Senior Chief Chiwala said the plant is a welcome relief in the fight against poverty and unemployment in his chiefdom.

“Youths in this area have been dependent on charcoal burning for survival but the coming of companies such as Dangote offering reasonable employment, will help turn around the situation,” the Chief said.

Dangote, which is investing another $400 million in a similar plant in Lusaka, has operations in several countries in Southern Africa including, Tanzania and South Africa.

EGYPT: Suez Cement seeks to increase production capacity by 15%

Suez Cement will seek to increase its energy intake and its production capacity by 15%, Bruno Carrè, the company’s Managing Director in Egypt, said during the Milan Expo 2015.

Carrè added the company will not file a request to obtain a new cement licence, however.

The company has used EGP 300,000 to promote its section at the expo using the new cements products the mother company produced.

In March, Carrè told Daily News Egypt the cement company will convert two new facilities to coal in 2015, adding to two facilities converted in 2014.

“We are investing some EGP 400m per year for four years,” Carrè said. “We have done one and we converted two plants and we have another two plants to complete.”

At the Economic Summit that same month, Carlo Pesenti, the CEO of Suez Cement’s mother company Italcementi, said the company is currently focusing on energy source diversification at its Egyptian facilities.

On whether or not the company will pump new investments into Egypt, Pesenti said the company “has capacity [to increase the volume of investments]”.

Regarding its current Egyptian investments, Pesenti said the “company is investing some €150m to build a wind farm that will be deployed in the next 24 months”.

On 26 March, the company donated EGP 30m to the Long Live Egypt fund. A check worth EGP 10m was given to Prime Minister Ibrahim Mehleb. The remaining EGP 20m will be given over the next two years, with EGP 10m each year.

BANGLADESH: Two business groups to venture into cement manufacturing

Two business groups are set to join the cement manufacturing market with about Tk 5 billion investment by the beginning of next year amid the sector's steady growth of around 15 per cent annually.

Bengal Group of Industries and Aman Group are planning to put their money in this sector as they see a shining future of cement, one of the key backward linkages of the growing construction and real estate sectors.

"Bangladesh has been rapidly urbanising and the speed of urbanisation will be geared up in the future. So the investment in cement manufacturing will be an intelligent move," Bengal Group director Firoz Alam told The Financial Express.

The group, a pioneer in plastic processing industry in the country, is stepping into this sector for the first time after expanding their business in media, real estate, packaging, chemical, food processing, paper etc.

"We have decided to primarily invest around Tk 2.3 billion to set up a plant with capacity to produce 3200 tonnes cement per day," said Mr. Alam, who is looking after the new venture. 

Bengal Group is a market leader in producing cement bags which will be a great advantage for the business group, he said.

Aman Group is already in the cement business under the name of Aman Cement Ltd with very little capacity. The new venture will be named Aman Cement Mills Unit-2 Ltd. with a production capacity of around 5000 metric tonnes per day.

Aman Group is constructing their factory in Munshiganj on 300 acres of land. The total investment of the company in the new project is around 2.7 billion, company sources said.

"We will use only 60 per cent of production capacity primarily and produce only high-value products in the second unit," Sirajul Islam, a senior officer (admin) told FE. He is looking after the project.

"We expect the new Aman Cement project will come to the market by March next year," he said. 

Like other sectors, the cement industry was affected in 2013 due to political unrest. Still the sector saw around 10 per cent growth.

In 2014, cement consumption grew 12 to13 per cent, according to an industry insider.

According to a market research firm, cement consumption growth was 3 per cent in January, 13 per cent in February and 23 per cent in March this year. 

Abdur Razzak Chowdhury, general manager of Tiger Cement, said the installed capacity of cement factories in the country is 33-35 million tonnes a year, while annual demand is 20-21 million tonnes as of 2014.

He said: "Most plants operate at 50 to 60 per cent efficiency, which is why we still have scope for cement growth."

There are 31 companies operating in the market now although some 71 companies are registered with the Office of The Registrar of Joint Stock Companies and Firms. 

"Some of them stopped operating," Mr. Chowdhury said.

Contacted, Policy Research Institute (PRI) executive director Ahsan H Mansur said there are huge opportunities of investment in the sector, but it needs restructuring. 

"Some companies will be out of the market, some big players will join," he said adding that Bangladesh is largely non-urbanised, so the potential is there. 

Firoz Alam said it is very common in the business that uncompetitive companies leave the market to competitive players.

"It is true that political instability left scars on the businesses of the country, but our research says there is massive potential in the sector," he said.

He said Bangladesh has become cement exporting country and there is also huge potential to grow.

Bangladesh exports 40,000 to 50,000 tonnes of cement a month to the 'seven sister' states of India.

However, Indian manufactures are now offering cement at lower rates than Bangladeshi companies due to tax benefits.

Mr Chowdhury said it is very much possible to export again to India and other new markets if government takes some measures including giving tax benefits to the exporters.

MOROCCO: ​Accroissement de la consommation du ciment

La consommation de ciment, principal baromètre du secteur du BTP, a enregistré une progression de 1,4% à fin avril 2015 en glissement annuel, après 0,6 % au premier trimestre 2015 et un recul de 3,1% un an auparavant, selon la Direction des études et des prévisions financières (DEPF). La bonne tenue des ventes de ciment a été confortée par le bon comportement des ventes au mois d'avril (+3,4 %) et du mois de janvier 2015 (+5,6%), explique la DEPF, qui vient de publier sa note de conjoncture pour le mois de mai 2015. 

Par région, les principales augmentations ont concerné respectivement les régions de Doukkala-Abda (+31,8%), Souss-Massa-Draa (+15,6%), Gharb-Cherarda-B.Hssen (+10,9%), Tanger-Tétouan (+2,5%), Tadla-Azilal (+5,3%) et de Marrakech-Tensift-Haouz (+2,5 %). 

Concernant les opérations de financement des activités immobilières, l'encours global des crédits attribués au secteur immobilier s'est renforcé de 3,2%, en variation annuelle, à fin mars 2015 à 239,7 milliards de dirhams, après +3,5% un an auparavant, en lien avec le comportement favorable des crédits alloués à l'habitat (+5,6% après +6,2% un an plus tôt). En revanche, le volume des crédits accordés aux promoteurs immobiliers a enregistré un recul de 3,8% après le retrait de 3,9% en mars et de 3,5% un an auparavant. En ce qui concerne les prêts accordés dans le cadre des fonds de garantie FOGARIM et FOGALOGE, ils ont totalisé à fin avril 2015 des montants de 769 et 473 millions de dirhams, au profit de 4.672 et 1.884 bénéficiaires, respectivement. 

Cette évolution est en phase avec la progression du volume de transactions des actifs immobiliers de 7,4%, en glissement annuel, durant le premier trimestre 2015, en rapport avec la hausse des transactions des actifs résidentiels de 8,8%, des biens à usage commercial de 7% et des actifs fonciers de 2,5%. 

Du côté des prix de ces actifs, leur indice s'est légèrement accru au titre de la même période (+0,2%), impulsé, essentiellement, par l'accroissement des prix des biens fonciers de 0,4% et qui a été atténué par le retrait de ceux à usage commercial et résidentiel de 1,6% et de 0,1%.