MSG Group of Companies and Tianjin Cement Industry Design and Research Institute Collaborate for Greenfield Cement Plant (Phase II of the group cement project) in Berbera, Somaliland
MSG Group of Companies (MSG Group) and Tianjin Cement Industry Design and Research Institute Company, Ltd (TCDRI — Sinoma), a wholly-owned subsidiary of Sinoma International Engineering Co, Ltd, have officially signed a memorandum of understanding to establish an integrated cement plant in Berbera, Somaliland.
The integrated cement plant aims to meet the growing demand for cement in Somaliland and the neighbouring 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.
To achieve complete independence in the cement manufacturing process, MSG Group is committed to installing a clinker production unit of 1.5 million tonnes and an additional cement grinding capacity of 1.2 million tonnes per annum. The unit will employ the latest technology to minimise its carbon footprint and prioritise 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 a 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.
TCDRI — Sinoma, identified as the strategic/debt financing partner, will be responsible for executing the project and handling its operation and maintenance upon commissioning. MSG Group is also engaging in discussions with reputable international financial institutions for potential equity participation.
For over four decades, MSG Group has evolved into a conglomerate with diverse interests in manufacturing, telecommunications, oil and gas exploration, energy distribution, logistics, and construction. Headquartered in Dubai and Djibouti, MSG Group’s vision is to impact regional economic development, create employment opportunities, and foster innovation through solid partnerships and ethical business practices.
Tianjin Cement Industry Design and Research Institute Co Ltd — a subsidiary of Sinoma International Engineering Co Ltd, is a leading provider of cement technology, equipment, and engineering system integration. The company is known for its high-tech innovation and global benchmarking in the cement industry.
About the signing ceremony, Mohamed Said Guedi, group chairman, conveyed unwavering confidence in the project’s success and its transformative impact on the lives of Somaliland and its citizens. With a population exceeding six million residents and encompassing a landmass of approximately 177,000sqkm, Somaliland occupies a pivotal position within the Horn of Africa. This vantage point beckons the imperative for hastened progress in terms of infrastructural enhancement and methodical urban expansion.
Highlighting this necessity, Ahmed Said Guedi, director at HHG, underlines the strategic significance of erecting a cement plant. Positioned at the crossroads of strategic growth, the cement plant assumes the role of a vital instrument, destined to propel the nation’s development trajectory. Its establishment stands as a symbol of strategic acumen, a gateway toward a future adorned with progress and prosperity, as Somaliland advances towards an era of enriched infrastructure and meticulously planned urban landscapes.