A cement plant, which opened in October 2016 in the Metuge district of Cabo Delgado province in northern Mozambique, is operating at a third of its installed capacity due to a lack of demand, according to independent television channel STV.
The Chinese-owned plant, which required an investment of US$24 million, has the capacity to produce 1,000 tons per day but is producing just 300 tons.
Paulo Wang, one of the unit’s directors, told a delegation of the Confederation of Economic Associations (CTA) of Mozambique that the main problem is low consumption and low demand for cement in northern Mozambique.
Wang said that this situation could improve when companies involved in the exploration of natural gas in the Rovuma basin – Italy’s ENI and US company Anadarko Petroleum – start construction of facilities in the district of Palma.
“When natural gas reaches Pemba, we expect to go from daily production of 300 tons to 800 tons,” said Wang.
Osman Yacob, the owner of a hotel under construction in the city of Pemba, told the CTA delegation led by its president, Agostinho Vuma, that he was waiting for the arrival of natural gas, as the current hotel occupancy rate is “frightening.”(macauhub)