Somaliland infrastructure industry has received a major boost after the MSG Group of Companies and Tianjin Cement Industry Design and Research institute (Sinoma) signed an agreement to establish an integrated cement plant in the port city of Berbera.
The integrated cement plant aims to meet the growing demand for cement in Somaliland and the neighboring region due to the expansion of the construction industry. Strategically located in Berbera, a major port on the Gulf of Aden, the plant will play a crucial role in meeting cement demand in the Horn of Africa region, where Berbera’s economic development has been positively influenced by the expansion of port services under DP World.
As part of its diversification plan, MSG Group will lead the development of the cement manufacturing unit with a capacity of 1.9 million tonnes per annum in Berbera. The project, carried out through MSG Group’s subsidiary, Horn Holding Group Limited, registered at DIFC, Dubai, includes the establishment of a cement grinding station with a capacity to produce 0.7 million tonnes of cement annually, which is expected to achieve commercial production by early 2024. The grinding station will be an integral part of the total 1.9 million tonnes per annum cement producing unit.
“This is the best ever news for the infrustructure industry in Somaliland. Thanks to this agreement, the port city of Berbera and the Horn of Africa is bound to experience tremendous infrutsructural growth,” said Sinoma Commercial Director Cui Zhaoujun after the signing of the agreement.
MSG Chief Executive Officer Ahmed Saed said: “We are happy to sign this partnership with Sinoma. It is yet another milestone for Berbera which is emerging as an intergral port city in the region.”
To achieve complete independence in the cement manufacturing process, MSG Group will install a clinker production unit of 1.5 million tonnes and additional cement grinding capacity of 1.2 million tonnes per annum. The unit will employ the latest technology to minimize its carbon footprint and prioritize the use of locally available raw materials for blended cement production. Additionally, the plant will incorporate a suitable capacity waste heat recovery system for power generation and explore renewable energy options to meet its electricity requirements.
The cement manufacturing unit will strictly adhere to the best international clean environment policies, ensuring minimal carbon footprint and aiming to reduce reliance on fossil fuels. The project envisions achieving commercial production by the end of 2025.
Moreover, the establishment and operation of the cement manufacturing unit will create significant employment opportunities for the local community, benefiting more than 500 Somalilanders directly and an estimated 2,000 individuals indirectly through the development of ancillary businesses. The project is expected to bolster regional and national economic growth.