Ethiopia-based Derba Midroc Cement, part of the Midroc Ethiopia plc,  plans to expand its cement capacity to double its daily production to 15,000tpd with a new plant in Mughar Valley, Oromia – not far from its existing plant. When completed, the producer will be the largest cement producer in Ethiopia.

To implement the project, Derba looks to sign an agreement with China National Building Materials (CNBM) this week.

Prior attempts to expand the production capacity in 2017 were constraint by a lack of power supply, according to Haile Assegide, Derba’s general manager. The company requires a supply of 94MVA. However, the installation of a 23km-long power transmission line from nearby Chanco, representing an investment of US$12m, is progressing in line with the project schedule. “The project contractor, Sinohydro Construction Ltd, has already completed the civil work,” said Mr Assegide.  

The new plant is expected to start production in the next two years, with construction to commence in the next six month. It will provide more than 3000 job opportunities and help to meet the demand for cement.

According to the study conducted by the Ministry of Mines, despite domestic demand reaching 36Mta, the actual supply provided by the country’s cement sector currently stands at 7.6Mta. Mismatches in demand and supply are further exacerbated by the 60 per cent drop in production from the target set at the outset of this year. Industry insiders attribute the considerable deficit to recurrent security issues, the inadequacy of input supplies, and the forex crunch haunting the import-export sector.