Country Report Mozambique May 2011

Economic performance: Cement production may triple

Three Chinese firms have announced plans to build cement factories in Maputo province, which will be operative by 2012. One of the companies, Africa Great Wall Cement Manufacturer, has announced plans for a cement plant near Magude, with capacity to produce some 500,000 tonnes/year (t/y); the factory is projected to cost US$78m. Another company, China International Fund, has already begun building a factory near Salamanga-in Matutuine district, south of Maputo-at a projected cost of US$72m. The firm hopes to produce around 800,000 t/y of cement from the plant. A third firm, GS Cimento, plans to build a facility in Beloluane industrial park in Boane, near the Mozal aluminium foundry, with capacity to produce around 550,000 t/y of Portland cement. The cost of the project is expected to reach US$100m. Furthermore, a fourth Chinese company, Bill Wood, has expressed interest in building a plant in Cheringoma district, Sofala province. Finally, South Africa's Pretoria Portland Cement (PPC) announced an investment in December 2010 of US$200m for a cement plant in southern Mozambique with a capacity of 600,000 t/y.

Cement production in Mozambique may triple to 4m t/y by 2013 to supply the booming market if these projects are concluded as planned. Currently, total national production from five different facilities is estimated at 1.3m t/y, of which the market leader, Cimentos de Moçambique (owned by Cimpor of Portugal), accounts for some 700,000 tonnes, according to Cimpor's figures. The US Geological Survey estimates output of the higher-grade hydraulic cement, which keeps its strength even when wet, at 777,000 tonnes in 2009. The sharp expansion in cement capacity is intended to meet booming demand from the construction market in Mozambique, with mega-projects in mining, energy and construction being the principal sources of demand.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
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