Chinese construction materials
manufacturer Huaxin
Cement Company has acquired Armen Cement's Tanzanian subsidiary Maweni Limestone Ltd. for $116 million (Sh11.95 billion).
According to joint ARM administrators from PwC Kenya, the acquisition of the Tanzanian maker of Rhino Cement brand will allow the Chinese company instant access to the regional cement market.
“This transaction will permit Huaxin immediate entry into one of the leading markets in East Africa and is integral to Huaxin’s broader strategy to expand its footprint across emerging markets,” the administrators said.
Tanzania's annual cement production amounts to more than 2m t in 2016, compared to only 900,000t in 2001.
Tanzania's largest cement producers are Tanga Cement (Simba), Portland Cement (Twiga) and Dangote Cement.
Africa's leading cement producer, Dangote Cement notes that Tanzania’s per capita cement consumption of around 50kg per annum is well below the global average and low even for Africa.
Nonetheless, "The improving performance of the economy has fueled strong growth in cement demand and the prospects remain favorable, given the linear relationship between economic growth and cement consumption," Dangote indicates.
Manyara Cement has shared plans for a 0.2Mt/yr integrated cement plant in Hanang district, for which it has already acquired limestone and pumice extraction licences for sites around Mount Hanang. The plant will use a vertical shaft kiln.The plant will sell cement on the northern Tanzanian and southern Kenyan markets.
