PPC acquired a 27pc share for 12 million dollars, while IDC, a development finance institution owned by the government of South Africa, invested nine million dollars for 20pc of the company.
According to Mesfin Abi, CEO of HCSCo Habesha, which has a subscribed capital of 750 million Br, has managed to collect 690 million Br, including about 370 million Br from PPC and IDC. Habesha expects to collect 60 million Br more from local shareholders by December 2012.
Habesha plans to construct a cement plant on 30ha of land in Holeta, 35km, west of Addis Abeba in Oromia Regional State, at a cost of 130 million dollars.
Chinese Northern Heavy Machinery Industries (NHI) Shenyang Co Ltd was then awarded the construction contract for the factory. Habesha has already paid an advance of 7.9 million dollars, 10pc of the contract, to NHI.
The factory is expected to begin production in the early half of 2014 with a capacity of 1.4 million tones of cement per annum.
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Corporate Communication Officer-Infra Group