Hengya Cement gives green light to US$1bn Tanzania investment

Hengya Cement, a subsidiary of China's Hengyuan International Engineering Group, has announced that it will build a new cement plant in Tanga on Tanzania's northeast coast, reports website China.org.cn.

The plant's capacity has not been disclosed, but Hengya claims that it will be one of the largest in sub-Saharan Africa. The initial phase of the project will cost US$1bn, with a second phase to follow.

"The Chinese investors' move is recommendable as it meant to meet country's cement demand as well as making the products is available at a relative low price," said Tanzanian Prime Minister, Kassim Majaliwa.

Hengya’s plan is to produce cement mainly for export, with some 70 per cent of output being sold abroad. Construction of the plant is expected to start in May 2017.

"We'll be using the Indian Ocean to export the produced cement to Somalia, Kenya and Mozambique. We're also planning to export it to Sudan, Democratic Republic of Congo and Uganda," the Chinese investor said.