ADDIS ABABA – MIDROC has entered into a $282 million agreement with a Chinese firm to work on an expansion project at Derba Cement factory.
Officials of Derba MIDROC Cement and Sinoma International Engineering Group signed the agreement at the Ministry of Mines headquarters today.
The agreement aims to enable Derba Cement, owned by Mohammed Ali Al-Amoudi and his family, to meet the surging demand for cement.
The $282 million expansion project will create an additional 80,000 quintals per day cement production capacity to Derba.
It was also stated during the agreement that the factory was contributing to solving the cement demand of the country.
Minister of Mines, Takele Uma, said the agreement signed today would start the expansion of production line 2.
“Derba Cement signed a $280M deal which supports our efforts to narrow the gap of the high demand of cement in the market,” the Minister said.
The expansion project will increase the daily production capacity of the factory, inaugurated 2012, to 150,000 quintals.
Recent reports say Ethiopia’s annual demand for cement is estimated to have reached 12 million tonnes.
A dozen cement plants in the country have an aggregate production capacity of 8.4 million tonnes per annum. Derba Cement has the largest capacity of 2.5 million tonnes, followed by Dangote’s 2.3 million tonnes.
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