Cement factory in Kwanza Sul, Angola, halts production and dismisses staff

3 November 2017

The Cement Factory of Kwanza Sul (FCKS) on Wednesday came to a standstill due to a lack of fuel for the production of clinker, fired 900 direct workers and dismissed 700 indirect workers, state newspaper Jornal de Angola reported.

The said in a letter to the government of Moxico province that the lack of fuel had been an issue since January of this year and was added to the other difficulties that the sector is experiencing, and which have contributed to an increase in production costs.

The director of operations of FCKS, Edmundo Ferreira, said he was waiting for a quick solution, given that the outage will affect many families for whom the plant is the main source of income and announced that the sales department will remain in operation until the 13,000 tonnes of cement currently in stock is sold.

The newspaper also reported that a lack of fuel is affecting four out of five cement plants in the country, and, besides FCKS, Bom Jesus, which is part of Chinese group CIF, is also at a standstill for the same reasons.

Together these two factories account for over 50% of the clinker produced in Angola.

The cement factories Sécil Lobito and Cimenfort, located in the province of Benguela, do not produce clinker and have to buy it in order to produce cement, from the Kwanza Sul cement plant.

The Angolan Cement Industry Association (AICA) has said the causes of the problem date back to 2014 and are linked to the fall in the price of crude oil on the international market, which led the government to eliminate its subsidy on fuel prices, including the fuel used by cement plants. (macauhub)