HakiPensheni: Prime Cement seeks to bridge supply gap with $40 million plant

Wednesday, September 2, 2020

Prime Cement seeks to bridge supply gap with $40 million plant

Cement is a primary product in construction and other infrastructure activities but those who rely on it in Rwanda have been struggling due to the supply deficit in the market.

Julius Bizimungu

Prime Cement Ltd, a new player in the market, promises to change that with a $40-million factory in
Musanze District in the Northern Province.
The company officially inaugurated its factory on Tuesday, September 1, and announced the start of commercial production of cement.
It is the second cement manufacturer in the country after Cimerwa, which has for a long time been struggling to meet market demand.
Prime Cement’s General Manager, Rolf Anttila said on Tuesday that they were going to the market to bridge the cement supply gap.
“This is the perfect time to go to market as projects have been experiencing delays because of lack of cement in the country,” he told the media during a tour in Musanze.
The plant comes at a time some construction projects are moving slowly because of the cement deficit.
Supply deficit
Rwanda’s cement demand stands at around 800,000 tonnes per year, while the country produces around 480,000 tonnes.
The country relies on imports to cover the production shortfall, but imports have been affected by the Covid-19 pandemic and geopolitical issues.
“The need for quick and readily available cement has never been efficient,” John Jovith Maridadi, the company’s Commercial Manager, said.
Rwanda is experiencing a construction boom, and the cement market is expected to grow by 10 per cent.
The company says it will prioritise innovation to serve the growing demand for cement in the country as it maintains at a relatively affordable price.
The cement plant is owned by Milbridge Holding, a group of companies involved in manufacturing and distribution of construction materials in Angola, the United Arab Emirates, Rwanda and South Africa.
It was designed with an annual production capacity of 600,000 tonnes with a target of ramping up to 1.2 million in the next two years.
The plant is strategically located in Musanze, a place that is not far from Kigali and a few hours away to Goma, giving leverage to the company to easily supply the Democratic Republic of Congo (DRC) market.
Rainer Sandtner, a lead engineer at the plant, said the plant was built with the latest technology to ensure efficiency in operations.
For instance, the vertical grinding mill is a new technology from Germany, designed for low power consumption to enable the plant to save power.
Sandtner is one of the 60 expatriates employed at the plant from Germany, Sweden, Denmark, India, Kenya, and Zambia.
The factory has employed 110 permanent workers, but Prime Cement says at least 300 will run the operations throughout the value chain.
Through a network of distributors, cement from Prime will be available in most of the hardware stores across the country.
A bag of 32.5 N grade will go for a wholesale price of Rwf9,500 while retailers will get it at not more than Rwf10,000.