Cement producers eye West African market

Africa, especially its western regions, is fast becoming a profitable market for Vietnamese cement manufacturers due to high demand and limited production capacity, according to domestic traders.

The cement market in West Africa has undergone difficult times in recent years with high prices and little supply.

Foreign companies such as Vicat, French Amida and Swiss Stucky have managed to carve out successful footholds for themselves in the struggling market, despite many regional countries still encounter cement shortages.

Cement prices have been escalating due to speculation in Togo, the country currently needs around 50,000 tonnes of cement per month.

Mali consumes around 1-1.2 million tonnes of cement annually.

Niger needs around 300,000 tonnes of cement per year, national manufacturer is only capable of producing around 80,000 tonnes.

In Benin, a country with high cement production, prices are level at around US$148 per tonne.

Many other countries are also struggling to cope with demand and supply going opposite ways.

Meanwhile, according to experts, the Vietnamese cement industry has targeted the production of around 60 million tonnes of cement to placate a domestic demand of around 55 million tonnes, causing domestic companies to struggle in finding and expanding their markets, several having successfully found thresholds in Africa.

The Thang Long Cement Company has been one of the lucky ones.

In January this year, the company exported 25,000 tonnes of cement to Africa, its second export in May reaching 33,000 tonnes.

The Cam Pha Cement Company has also exported cement to Africa, starting off by exporting products to Mozambique two years ago. The company has since signed a contract to export around 40,000 tonnes of cement to Africa. — VNS

Tags: Vietnam cement, Vietnam cement industry