HeidelbergCement plans to invest in South Africa, Mozambique
HeidelbergCement AG, the world’s third-biggest cement maker, is considering adding South African and Mozambique production capacity as the German company seeks
to tap Africa’s growing demand for cement. HeidelbergCement operates in Ghana, Benin, Liberia, Tanzania, Sierra Leone, Togo and Democratic Republic of Congo.
The new $50-million grinding plant in Ouagadougou, Burkina Faso, will produce 700,000 metric tons/year, boosting HeidelbergCement’s annual capacity in Africa to 10 million tons.
Infrastructure demand in Africa has attracted cement makers including Lafarge SA, which is merging with Switzerland-based Holcim Ltd. to create the world’s biggest producer.
This company plans to boost capacity in Nigeria and South Africa to 20+ million tons by 2020 from 12 million tons.
Dangote Cement Plc plans expansion into 14 African countries outside Nigeria and is investing $4 billion to boost capacity to 50 million tons by the end of 2015.
In South Africa, PPC Ltd. and AfriSam are in talks to merge the country’s two biggest cement makers to increase expansion on the continent.
HeidelbergCement will supply Burkina Faso with raw materials from Togo, where the company is building a $300-million clinker plant.