Birla Corp Considering Cement Factory in Ethiopia

Friday, 11 June 2012- In its first foreign country investment, Birla Corp is set to erect a cement plant in Ethiopia. The MP Birla group company has already formed Birla Corp Cement Manufacturing Plc, a wholly-owned subsidiary in the East African Country. Previously Birla Corp had tried unsuccessfully and lost to a Chinese company a bid to construct a cement plant for Habesha Cement S.C.


Chinese companies are becoming increasingly competitive in wining limestone mining contracts, cementing future off-take contracts.

Birla Corp is primarily planning to explore limestone required to the setup a cement plant, and also to explore possibilities to construct a power plant.

Ethiopia is reach with limestone, a basic material for cement production. The country has become increasingly sought after by foreign companies after the government took measures to expedite import of coal which is used to run cement plant.

Birla Corp’s undertaking in Ethiopia is to source clinker, following a ban on limestone mining at its Chanderia unit in Rajasthan in August 2011. Motion to vacate an order banning its mining activities was unsuccessful as the Jodhpur High Court cancelled all mining concession and banned blasting activities within 10 kilometres of the Chittorgarh fort. In spite of the ban, Birla has expanded the Chanderia unit’s capacity by 1.2 million tonne (mt) and is set to inaugurate a 0.7 mt grinding capacity addition to its plant at Durgapur. A coal washery is also expected to be operational at Satna by the end of December. Once the expansion projects are over, its annual capacity will reach 9.3 mt.

Source: DNAINDIA.com