Dangote Cement is to invest US$450m to double its current production capacity to 5mn metric tons per year. This is double the production rate of 2.5mn metric tons per year (mmtpa) when the factory opened May this year. The company has already received a 36ha of land from Oromia State, near the factory’s site in Mugher, Adebern Wereda.
The company requested the land from Oromia Investment Commission on September 16, 2015. Now it is processing right of way issues at Wereda level. The new factory plans to employ 1,300 people when it is completed.
In addition to the local market Dangote sees a market outside Ethiopia in its neighboring countries. The total investment in the project will be in the purchase of capital goods, civil works and fixed assets.
It also has planned to open a bag factory which will supply packaging not only for Dangote but also for others in the sector.
Currently, the cement factories in Ethiopia are estimated to have a production capacity of 15.1 million metric tons a year, yet actual production is only 10 million tons. The capacity is expected to reach to 27 million metric tons by the end of GTP II.