Chinese controlled Sinoma and Hengya Cement (T) Ltd will build a cement manufacturing plant next to Tanga in Tanzania northern coastline, Xinhua China’s official press agency reports.
The President of Sinoma Ltd of China, Peng Jianxin, said that the investment will be implemented in two phases, whereby in the first phase about USD 1 billion will be spent.
He also explained that 70% of the cement production will be exported and 30% will be for the local market.
“We’ll be using the Indian Ocean to export the produced cement to Somalia, Kenya and Mozambique, […] Sudan, Democratic Republic of Congo and Uganda,” Jianxin said.
The proposed plant is also close to the Uganda-Tanga proposed crude oil pipeline to transport crude oil from Uganda’s oil fields to Tanga’s port on the Indian Ocean.
The Tanzanian Prime Minister Kassim Majaliwa commented: “The Chinese investors’ move is recommendable as it meant to meet country’s cement demand as well as making the products is available at a relative low price.”
According to Majaliwa, construction of cement plant will act as a catalyst to Tanzania’s industrialization plan as well as speeding up country’s socioeconomic development.
The construction works of the proposed plant are expected to start in May 2017.
Sinoma Ltd is the largest provider of cement equipment and engineering services in the world and a leading producer of non-metal materials in China , Sinoma’s website indicates.
The Company was incorporated on 31 July 2007 and was listed on the main board of the Hong Kong Stock Exchange on 20 December 2007.
Tanzania’s annual cement production in 2016 was more than 2 million tons.
Tanzania’s largest cement producers are Tanga Cement (DSE: TCCL), Portland Cement (DSE: TPCC) and Dangote Cement (NSE: DANGCEM).