Ethiopia-based Derba Cement is planning to invest US$300 million (€268.68 million) for expansion.
The proposed investment will be used to finance the construction of a second cement factory in Chancho City, which will have an annual output capacity of 2.5 million tonnes on completion.
Haile Assegide, CEO of Derba Cement , said the company has initiated talks with the Development Bank of Ethiopia; International Financial Corp (IFC); the World Bank Group investment arm; the African Development Bank (AfDB), and the European Investment Bank for the proposed expansion.
Earlier, Derba Cement secured $251 million in loans from those institutions to finance its first cement factory, which was built at a cost of $351 million. The remaining $100 million came from a Saudi Arabian billionaire.
Assegide further stated Derba Cement is also in talks with China National Building Materials Company, the contractor of its first facility, for the construction of the new factory.
