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World Cement,

Cimpor has just announced that it will invest €18 million to double production in the largest of its three plants in the southern city of Matola. The Portuguese producer is the majority shareholder in Cimentos de Mocambique, which, in addition to the plant at Matola, owns plants in Dondo and Nacala. The Matola plant produces 0.5 million tpa, but according to local news agencies this is far short of the demand for cement in southern Mozambique. Companies are currently importing cement from South Africa.

The new investment will see the plant’s capacity increase to 1 million tpa. A new cement mill will be installed and Cimpor has awarded a contract to the South African building company Group Five for the construction of the extension and installation of the electrics. It is believed that the expansion will enable Cimentos de Mocambique to meet the requirements of the country’s entire market for the next eight years.

The BUA Group has announced plans to invest US$ 50 million in the Sokoto Cement Company (Cement Company of Nigeria). Last year BUA acquired the majority stake in the Sokoto and Okpella Cement Companies. The new facility will see an increase in production to 0.7 million tpa. Other projects will include a conversion from oil to coke firing in a move to reduce energy costs and make the company more competitive.

In another development, BUA has sent out tender documents in relation to the construction of a new 2 million tpa production line. It is anticipated that a contract will be signed by the end of June 2010.The bid process is expected to involve three European and one Chinese company.

Last year following the acquisition of the two companies, Abdulsamad Rabiu, Chairman of the company unfolded plans to upgrade and modernize the capacity of the Edo Cement Company by installing a new 2 million tpa line before the end of 2012, thereby increasing production to 2.4 million t.

It is understood that Raibu is also in discussions with Gaslink and Nigerian Gas Company with a view to extending gas supply to the Okpella cement plant, which is only 20 km from a major gas pipeline.

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