Investment Magazine/Special Report
As part of the Cement Localization Project and under the auspices of Prime Minister Ahmed Ghaleb Al-Rahwi, a significant partnership agreement was signed today, Wednesday, November 6, 2024, between the Yemeni General Corporation for Cement Manufacturing and Marketing and private sector cement grinding and production factories.
The agreement was ratified by the Prime Minister and signed by the Ministers of Economy, Industry, and Investment, Eng. Moeen Al-Mahaqri, Finance Minister Abdul Jabbar Ahmed Mohammed, Chairman of the General Cement Corporation Yahya Saleh Atefa, and representatives of cement grinding plants.
This agreement aligns with the Ministry of Economy, Industry, and Investment's efforts to localize various industries where Yemen has potential for self-sufficiency, particularly the cement sector. Under the agreement, the Cement Corporation will supply clinker—an essential raw material for cement production—to private cement grinding factories, which previously had to import this material.
During the inauguration, Prime Minister Al-Rahwi highlighted the importance of this initiative as part of the significant strides being made in the economy and industry sectors under the leadership of Minister Moeen Al-Mahaqri, in coordination with the Finance Minister. He commended the efforts to rehabilitate and restart production lines that had been dormant, emphasizing the sector's role as a promising economic pillar for the nation and its people. He also underscored the need to harness existing resources and capabilities across various promising sectors, not just in cement.
Al-Rahwi noted that the government is moving towards localizing industrial production across various sectors and ensuring the necessary support for their stability, growth, and prosperity. He stressed that the current government, committed to change and progress, has the qualified and dedicated expertise needed to achieve tangible results that meet the essential needs and aspirations of the resilient Yemeni people.
In his remarks, Minister of Economy, Industry, and Investment, Eng. Moeen Al-Mahaqri, emphasized the significance of the cement industry localization project, aiming to shift factories from reliance on imported raw materials to local production and to seek international markets for export. He highlighted the economic benefits, including saving substantial foreign currency costs previously spent on importing primary materials. He noted that the Cement Corporation's factories would supply clinker to private producers, benefiting from the high quality of local raw materials, which enhances cement quality.
Minister Al-Mahaqri added that localizing cement production opens extensive prospects for the industry, contributing significantly to national economic growth and supporting development across all sectors. He outlined various plans and studies aimed at expanding and enhancing cement production in Yemen, reducing production costs, and fostering collaborations between public and private sectors for impactful economic projects. These include establishing a cement bag manufacturing plant and producing new types of specialized cement, such as salt-resistant and white cement.
The minister reaffirmed the ministry's commitment to nurturing and advancing all industrial and production projects. Finance Minister Abdul Jabbar also spoke, noting that launching the Cement Localization Project opens new operational pathways for the General Cement Corporation and urged intensified efforts to achieve self-sufficiency and explore external markets, leveraging the superior quality of Yemeni cement. He pledged the Ministry of Finance’s support for the localization strategy and related industry initiatives.
During the inauguration, attended by senior officials including the heads of the General Zakat Authority, the General Real Estate Development and Investment Corporation, and the General Investment Authority, Chairman Yahya Atefa of the General Cement Corporation outlined the institution's achievements in overcoming challenges, stabilizing operations, reducing costs, and securing strategic input supplies with direct support from the Ministry of Economy.
Atefa highlighted efforts to restart and upgrade production lines at Amran and Bajil cement plants, with plans to switch to coal-fired systems to cut production costs. He also noted ongoing support for reactivating the Al-Burh Cement Plant and exploring various technological solutions to further lower costs and diversify production.
The event, which also saw the participation of the Deputy Minister of Economy for Trade Affairs, Mohammed Qatran, CEO of the Yemen Oil Company, Mohammed Al-Lakoumi, and Executive Director of the Yemen Standards and Metrology Authority, Sam Al-Bashiri, featured remarks from Ali Al-Hadi, Chairman of the Sana’a Chamber of Commerce. Al-Hadi called the cement localization initiative a lifeline, not only for job creation and reducing import dependence but also as a crucial driver of local development. He lauded the government's dedication to this project and the efforts of the Ministry of Economy, Industry, and Investment in advancing industrial localization and revitalizing Yemen's economic landscape.
The event concluded with a presentation on the importance of the Cement Localization Project, Yemen's rich resources in this sector, and the benefits of utilizing them effectively for the national economy.
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