Senegal in the Price of Cement is Expected to Fall Slightly(1/28/2010)

With a new cement production line put into operation, Senegal Sococim cement plant (part of Vicat Group) annual production capacity will be over 300 million tons. At present, the plug has two cement plants, namely, Sococim and Saharan (Sahel). 2 of the price war is inevitable.

After the expansion, Sococim cement meets the needs of Senegal market. According to data released by National Bureau of Statistics Sierra Leone, Sierra Leone national annual demand for cement is estimated at 220 million tonnes.

Sococim Cement has invested 125 billion CFA francs (about 270 million U.S. dollars) for the technological transformation and expansion of production capacity. The face of competitor initiatives, Sahla cement plant from 2008 onwards have also invested 13 million CFA francs (about 290 million U.S. dollars) to boost their production capacity and expects its production capacity will reach an annual output of 3 million tons. In addition to Sococim and Sahla cement, the Dangote Group, Nigeria, Senegal, also plans to build an annual production capacity of 2.5 million tons of cement. The foregoing factors, the current Serbian domestic cement market is already saturated, lower prices is an inevitable trend, and will also compete radiation to the neighboring countries.

Senegal in 2009 before the 9 months of cement were exported 41.2 billion CFA francs (about 91 million U.S. dollars), an increase of 25.2%. Ultra 100 million U.S. dollars annual export a foregone conclusion.

(by China Leiyuan, 1/28/2010)