Mugher Earns 409mln Birr in Gross Profit, Ethiopia
Mugher Cement Enterprise, the state-owned cement producing giant in the country, secured over 409 million birr in gross profit in the 2006/2007 fiscal year, Enterprise General Manager Tefera Abebe said.
The profit the enterprise earned in the fiscal year exceeded what the company grossed the previous year by 17 per cent, according to the manager.
During the 2006/2007 fiscal year, the enterprise produced 817,000t of cement, thereby meeting 97 per cent of its target.
The enterprise plans to produce over 845t during the 2007/2008 fiscal year, according to the manager.
Despite the cement price hike caused by an ever increasing demand, Mugher’s selling price has remained "fairly lower" compared to that of other cement producers in the country, according to Tefera. Currently, Mugher cement factory sells one quintal of cement for 135 birr in Addis Ababa. The price tag for the same quantity of cement at the enterprise’s plant in Mugher is 125 birr, according to the manager.
With the demand for cement increasing, Mugher embarked upon an expansion project a year ago, which, when completed, will increase its cement production capacity by 150 per cent. Currently, Mugher cement produces 800-900tpa. Being undertaken by a Chinese company named Sinoma, the enterprise’s expansion project is expected to consume an investment outlay of 1.4 billion birr, while the project is scheduled to be finalized within a two-year period.
The enterprise has also finalised preparation to erect what will become the largest clay roof tile and brick producing factory in the country, which will require an investment outlay of over 140 million birr. Looking for a joint venture partner to launch this project, the company recently invited prospective investors, both locals and foreign ones. The clay roof and brick producing plant will be erected in Alemgena, a small town in Oromia region, some 23 km south-west of Addis Ababa.
Published under Cement News
