Capital Ethiopia Newspaper

Cement industry sees dramatic expansion

Seven new major cement projects are on the way this year. Five new factories will be completed and two existing ones will be expanded. This will mean an additional 4.8 million tons of cement for Ethiopia. 
For this year the factories will be at 65 percent of capacity and will be able to make 1.3 million tons of cement by the end of the current fiscal year.
The government estimates that by July 7, 2012 the country’s cement potential supply will reach 12.61 million tons.  The combined estimated production for 2011/12 including from the new factories shall be 6.64 million tons.
The actual demand for the cement, including the 216 thousand tons of cement needed for the Grand Renaissance Dam construction, is still expected to be 1.3 million tons higher than the production capacity. 
Derba MIDROC cement’s main factory will begin operating in January 2012 and the National Cement Expansion projects located in Oromia and Dire Dawa that are expected to begin next May are the two largest projects.
C.H. Clinker manufacturing PLC, Ethio-Cement, Ture Dire Cement are the other new factories.
Jimma Cement factory is also being expanded. Derba MIDROC Cement will have other factories that it owns expanded as well; these are known as Dejen third and fourth phase projects and they are the smaller part of the Derba MIDROC cement corporation located in Amhara regional state.
In total the projects are expected to add a capacity of eight million tons of cement annually from the current about 4.63 million tons produced by the existing factories.
In total there are 37 facilities that produce cement in Ethiopia. Fourteen are from local investors, one is a joint venture between a local and foreign firm and the rest are foreign based investments. Out of the 37 cement projects 34 of them are new cement projects.
The Ethiopian government plans, by the end of the Growth and Transformation Plan in 2015, to increase the cement production to 27 million tons of cement annually to meet Ethiopia’s cement needs. This is happening at a time when the per capita cement consumption is increasing from the current 35Kg per person to 300Kg per person. 
It also plans to make operational by 2015 four cement expansion projects and eight new cement factory projects.