Uganda: Hima Cement signs supply deal with Guangzhou Dongsong

Uganda's Hima Cement and Guangzhou Dongsong Energy Group have signed a memorandum of understanding for the supply of over 40,000t of cement for the construction of the latter firm’s phosphate and steel projects, Kampala’s Observer newspaper reports.

Daniel Pettersson, chief executive officer of Hima Cement, said: "The purpose of this MoU is to establish the relationship between Hima and Guangzhou Dongsong. This cooperation of both parties shall cover the project of construction of the phosphate plant and steel mill plant, and any other projects within the Sukulu industrial park".

The move will be viewed as a missed opportunity for Tororo Cement, whose plant is only a few kilometres from the project site, while Hima’s is located more than 500km away.

Hima has also said it will consider buying titanium slag from Guangzhou Dongsong once its steel plant is operational.