Incremental increases in cement prices over the last few months helped boost gross profits of the state-owned Mugher Cement Factory by 46 percent, sources disclosed to The Daily Monitor. The factory has grossed 63 million birr profits in the concluded first half of the current fiscal year, the amount surpassing Muger’s registered profits before tax in the same period the year earlier by over 20 million, according to our sources.
The increase in cement prices has also picked up Mugher’s revenues in the first six months of the budget year by 19 per cent, although the factory’s production in the stated period has shown relatively insignificant growth of 2.5 per cent against that of the last first half-year. The factory was selling a 100kg of cement for about 60 birr since last year prior to inflating the price to 75 birr some time this fiscal year.
According to local sources, the factory has produced and sold over 385,000t of cement in the reported period; meeting 96 per cent of its target despite being kept idle for two months owing to major overhaul works the plant had to under go to operate in full capacity. Reports said Mugher has planned to produce about 876,000t of cement during the budget year, exceeding its last year’s performance by 20,000t if all goes according to the plan.
Currently, Mugher and one of the affiliates companies of the Tigray Development Fund (TDF), Messobe Cement Factory, are the major establishments in cement productions, sharing the local market almost equally, although their total supply couldn’t satisfy the demand. In a bid to increase the supply, Mugher is currently engaged in a major expansion project to launch a new plant which will increase its production capacity by 150 per cent.