Mozambique Dugongo Cimentos will invest a total of 35 million US dollars (2.2 billion meticais) in the construction of a third cement factory, to be located in the district of Ancuabe, in Cabo Delgado province, in the northern region of the country.
According to project coordinator Anselmo Amurane, the detailed concept for the factory is currently being developed, and community consultations have already been held to obtain the Land Use and Benefit Right (DUAT). Environmental assessments are still pending.
Without disclosing the exact date for the start of construction, Amurane stated that the project will employ 900 workers during the construction phase and 135 during operations. “Our aim is to contribute to the overall increase in cement production and supply capacity,” he said.
“This initiative also seeks to employ young people and provide technical training — something that is already happening in Maputo and Nacala, in the southern and central regions, where the group’s two existing factories are located,” the coordinator emphasized, as quoted by Lusa.
Mozambique Dugongo Cimentos is jointly owned by Mozambican business group SPI and Chinese group West China Cement Limited. SPI holds a diverse business portfolio and has been linked to the Mozambique Liberation Front (Frelimo) by research institutions. The first factory, located in Matutuíne district, 70 kilometers from Maputo city, has an annual production capacity of two million tonnes of cement. The second factory is located on a 50-hectare site in the municipality of Nacala, in Nampula province.
Soon after entering the national market in May 2021, Dugongo began selling cement at significantly lower prices than those then practiced, prompting other market players to accuse the company of unfair competition, claiming it drove other cement producers to bankruptcy and triggered job losses in the sector.
After several months operating at low prices, the company eventually raised its cement prices to levels close to those previously charged by competitors who had been forced to shut down. On September 12, 2022, Dugongo confirmed it would pay a 20.5 million meticais fine imposed for anti-competitive practices. The fine, issued by the Competition Regulatory Authority, was justified on the grounds that the company had failed to respond to the regulator’s inquiries regarding its pricing methodologies.
Source: DE
