Industrial Projects Service, an Ethiopian state-owned consultant, has won a contract from Messebo Cement to conduct an assessment of the cement market around Addis Ababa.
According to a statement it wants to explore the feasibility of opening a grinding plant where semi-processed clinker from Tigray will be processed to produce cement
“The project is mainly intended to minimise the transportation cost incurred from Mekelle to Addis Ababa, which is $24.5 per 33.7 tonne, and hence to enable the plant to compete with existing cement plants in the city,” Kidane Tekelehaimanot, Messebo’s deputy project manager said.
Mekelle is 770 kilometre away from Addis Ababa and transport costs is a major factor.
The Addis plant, if opened, would receive and crush the semi-processed clinker by mixing it with additives, which account for 30% of the total amount currently transported from Mekelle. The Mekelle plant produces 83% of its 2.24 tonnes a year cement production capacity.
Messebo is the second company after newcomer Habesha Cement to undertake a market study.
Habesha has hired Waas International Consulting to assess the current and future demand and supply.