Tuesday, 06 December 2011 08:58 Meron TekleberhanEthiopian Business News - Cement
Derba MIDROC cement factory has announced plans to offer 60 day credit to contractors for 50% of payment and an 
unconditional bank guarantee. The factory is expected to join the cement industry in Ethiopia within a month.
Contractors can utilize the arrangement indefinitely as long as the bank guarantee is in place said Haile Assedeie Chief Executive Office or Derba.
Derba will offer the same terms to private individuals provided that the organizations that they are employed by can put up similar guarantees.
The cement producer will also offer 5 day delivery services to customers within a raidus of 600 Km from Addis Ababa. The company expects to widen its delivery radius after two months to encompass all parts of the country according to Haile.Derba will provide the delivery service through one thousand Volvo trucks to be managed by Derba Transport plc which is under formation.
Derba aims to solve price and supply problems associated with the cement industry in Ethiopia explained Haile. He decline to comment on the price of Derba cement.
It is to be remembered that current increases in the supply of cement after the increase in production by the Mugher and Mesebo Cement factories has resulted in an unprecedented decrease of cement prices.
It is expected that the entrance of Derba into the cement factory with a production capacity of 80,000 qls a day will further increase the supply and reduce the price of cement in the national market.
Mugher and Mesebo have requested that Ethiopian government stop the import of cement as current supplies are sufficient to meet national demand.
Source: Addis Fortune
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