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Ethiopia’s New capacity openings

World Cement,

Ethiopia’s economy has, on average, expanded 11% percent y/y over the past seven years, as data from the International Monetary Fund shows. The country’s government has its sights set even higher though, aiming for growth of as much as 14.9% over the next five years. Led by government investment in low-cost housing, as well as large infrastructure projects such as roads, dams and universities, there is a construction boom afoot in Ethiopia. However, this has meant that domestic supply has not been able to meet the new demand being placed on it.

While there seems to be much private investment in capacity increase happening around the capital, Addis Ababa, it is easy to overlook the smaller openings in the East, such as the new Ture Dire Dawa Plant, that has recently completed its construction phase. The plant is a first for Ture Trading and only the second plant in the town of Dire Dawa.

It is expected that production will begin within the next two weeks. With a capacity of 1500 tpd, the plant, which began construction in 2008, will produce both Ordinary Portland Cement (OPC) and Pozolana Portland Cement (PPC). The plant is ready, and Ture is waiting for final approval to begin from the Ethiopian Conformity Assessment Enterprise (ECAE), following the delivery of product samples. The cost of construction is estimated at a total cost of Br307 million (US$16.9 million). As well as supplying the domestic market of eastern Ethiopia, the new plant also aims to deliver its products to Somalia and Djibouti. In order to facilitate this, it is planning to import 10 Sino trucks.

National Cement is also expanding its interests in the east of the country. The company began a new project close to its Dire Dawa Cement and Lime plant in 2005. So far, the cost of the project has run to Br1.8 billion (US$99.3 million). Located three kilometers north of the existing plant in Dire Dawa, the new plant takes in 40 hectares of land, including the quarry, in Ija Aneni Kebele. Once completed the plant will have a capacity of 3000 tpd, a volume that equals the production capacity of the company’s Mugar and Messebo plants combined.

Written by Jack Davidson.

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