According to Taiwanese media reports, the cement industry in mainland China has set its future development goals in Africa, and Hebei Jidong Group, a cement giant in mainland China, is actively promoting the establishment of factories in South Africa.
According to the South African government website, Chinese cement producers have entered the South African market. Hebei Jidong Cement, which has always been the world's leading cement producer, has invested 1.8 billion rand (about 1.05 billion yuan) in South Africa and produced 1 million tons of cement annually in Limpopo Province. South African investment banks Nedbank Capital and Bank of China provided R1.1 billion in financing. The head of Jidong Cement in South Africa told reporters that the project originated from the China-Africa Cooperation Forum in 2006, signed an agreement during President Xi Jinping's visit to South Africa in 2013, and is now under construction.
At present, the domestic cement industry is one of the industries with excess capacity, which is strictly controlled by the government, and new projects have been suspended. According to the latest data, the global cement production is about 4 billion tons, and China's production has accounted for 58.6%. Nowadays, Chinese cement manufacturers have gone abroad and entered Africa. Infrastructure construction in Africa is in full swing, and the demand for building materials, especially cement, is very strong. Frost Sullivan, a global growth consultancy, released the Southern Africa Cement Industry Production and Investment Outlook, which predicts that South Africa, Zambia and Zimbabwe will invest $940 million in the cement industry from 2013 to 2018.
Although there is no specific data, according to public reports, China has dozens of cement enterprises in Africa, covering almost all African countries. Sinoma International Engineering Co., Ltd. has built seven new dry-process cement production lines with a daily output of 6000 tons in West Africa, six in Nigeria and one in Senegal, with a total contract value of 1.6 billion US dollars. Sinohydro, as the lead party, together with the China-Africa Fund and Jinan Yuxiao, has invested about US $100 million in the construction of a new dry-process cement production line in Maputo, Mozambique. African Great Wall Cement Manufacturing Company has a cement factory in Mozambique with an annual capacity of 500,000 tons, and China International Fund has another cement factory in Mozambique. Three Chinese cement plants have tripled Mozambique's cement production. China Chaoyang Machinery Import and Export Corporation won the bid for the Ethiopian cement project, with a total investment of 77 million US dollars and an annual output of 450,000 tons of cement. MCC15 also undertook the construction of Ethiopia's 5,000 tons and 7,000 tons of volcanic ash cement production lines, alleviating the shortage of cement supply in Ethiopia.
According to Taiwan's China Times, Africa has a total population of 900 million and its cement production capacity is less than 100 million tons, which makes the price of cement in Africa very high. The price of one ton of ordinary Portland cement is about $200 to $400, which is six times that of the mainland of China. Therefore, it is a good move for the mainland cement industry, which is currently facing difficulties in development, to develop in Africa.