Moroccan cement maker CIMAF partners with Chad to revive production

Moroccan cement company Ciments de l'Afrique (CIMAF) has partnered with the Chadian government to establish CIM-Chad, a new company that will operate the industrial and mining assets formerly held by state-owned SONACIM, the company announced on LinkedIn March 13.

The transaction represents a significant step in Chad's industrial recovery efforts under the Chad Connection 2030 program, which aims to boost domestic manufacturing and infrastructure development. CIMAF will hold a 70% stake in CIM-Chad, while the Chadian State and four municipalities -- Pala, Léré, Fianga and Gounougaya -- will retain a combined 30% shareholding, the company said.

CIMAF said it will invest 36.5 billion CFA francs (about $61 million) for the transaction, with an additional 12 billion CFA francs ($20 million) earmarked for capital improvements over the next five years.

The primary objective is to restart sustainable cement production at the Pala/Baoré facility and strengthen local cement supply to support Chad's infrastructure expansion, according to the announcement. CIMAF said it will upgrade the industrial facility as part of its five-year investment plan, drawing on its technical capabilities and regional market knowledge.

Platts, part of S&P Global Energy, assessed Platts CEMDEX at $54.50/metric ton FOB Turkey and the Platts Clinker Turkey price at $45.50/mt FOB on March 12.