Saudi tycoon sets up $19.5m cement firm in Ethiopia
Ethiopian-born Saudi magnate Sheikh Mohammad al-Amudi paid on Thursday 8 March close to US$19.5m on behalf of Derba-MIDROC (Muhammad Investment Development Research Organization Company) Cement Factory, a subsidiary company of MIDROC-Ethiopia, which has hired China National Building materials (CNBM) to build the largest cement factory in Ethiopia.
Established with a capital of 2.4bn birr, Derba-MIDRIOC is the largest investment in the pipeline. Eighty per cent of the company is owned by Sheikh al-Amudi while the remaining share goes to MIDROC-Ethiopia, the state-run ENA reported.
The company was granted over 123 hectares of plot to construct a cement plant with a production capacity of 7,000tpd, an amount more than twice the size of what the state-owned Mugher Cement Factory is producing now.
The Chinese company was awarded, in January 2007, a turnkey project to build the factory near Chancho town, 70km west of Addis Ababa in the Oromia Regional State.
The total investment for the factory is projected to be US$310m. Published under Cement News
