Sales of Angolan cement plant up 61 percent in 2005

21 July 2006

Luanda, Angola, 21 July – Sales from the Tecnosecil cement factory in the port city of Lobito increased by 61 percent last year to reach a value of euros 13.4 million due to expansion in the construction sector fuelled by Angola’s post-war reconstruction, industry sources said.

Sales by volume rose 45 percent to 107,000 metric tons, more than double the 43,000 tons registered in 2003, Macauhub was informed by the company – controlled by Portuguese cement group Secil.

Pre-tax profits of the Lobito venture were euros 1.94 million, over 7 percent more than the year before.

Investment in the Tecnosecil factory was euros 1.6 million, half the amount recorded in 2004 but a figure that will show strong increase in coming years due to expansion projects launched in 2005.

In 2003 and 2004 investments in the Lobito plant by Secil surpassed euros 10 million.

It is forecast that the cement plant will achieve an annual production of 250,000 tons by 2009, double the current amount, and a new clinker mill will be installed in an investment of US$ 80 million to reduce the need to import raw materials.

In November 2005, Secil established a management partnership with the Angolan state for the Portuguese firm to hold a 51 percent shareholding in the undertaking with the remaining stake being held by Angolan state company Encime.

Secil said that its performance in Cape Verde last year was rather weak due to losses of euros 114 million in the group’s operations in the archipelago.

Sales from Inertes de Cabo Verde (ICV) fell 17 percent in tonnage to 87,000 tons and 22 percent in value to euros 1.04 million as a main customer “significantly reduced its orders.”

Secil increased its shareholding to 65 percent in Intertrade, an ICV subsidiary, last year. (macauhub)