Cimerwa Cement Limited

Cimerwa Cement Limited is a Rwandan cement manufacturer and one of the country's principal domestic suppliers of Portland and masonry cement. The company operates its main factory in the Muganza Sector of Rusizi District in Rwanda's Western Province, near Bugarama. It also maintains offices in Kigali. The plant has installed annual capacity of approximately 600,000 metric tonnes and produces cement for general construction, heavy projects, road building, plastering, masonry and related applications. The business was established in 1982 with annual capacity of about 50,000 metric tonnes. Its early operation followed a build-own-operate-transfer arrangement managed by the Chinese company CBMC. Plant operations were suspended during the 1994 Rwandan genocide, during which 53 employees died. Production capacity was later expanded to approximately 100,000 tonnes per year in 2001. Cimerwa was privatized in 2006 under the Rwanda Investment Group, transferring ownership to a group of Rwanda-based institutional shareholders. In 2013, Pretoria Portland Cement Company, commonly known as PPC, acquired a 51 percent stake for US$69.4 million. Cimerwa adopted a new corporate identity in 2015 to reflect the change in ownership and operated for several years as a majority-owned PPC subsidiary. The remaining shares were held by Rwandan investors, with that shareholding reportedly offered for sale by 2019. The company invested in a major plant upgrade completed around 2018. Before the upgrade, the facility operated below its installed potential, producing roughly 350,000 tonnes annually, or less than 60 percent of capacity. Following the work, reported output potential rose to approximately 441,223 tonnes per year, equivalent to about 74 percent of installed capacity. The expansion was intended to strengthen domestic supply and reduce Rwanda's dependence on imported cement. The plant uses imported coal from Malawi and Tanzania for kiln fuel. Cimerwa's product portfolio has included SUREBUILD, a 42.5N premium cement for demanding structural and heavy-construction applications; SURECEM, a 32.5N general-purpose cement for concrete, mortar, plaster and brickwork; SUREROAD, a 32.5N cement formulated for road construction; and SUREWALL, a 22.5X masonry cement designed for plastering and brick joining. In November 2023, shareholders agreed to sell 99.9 percent of the company to Kenya-based National Cement Holdings Limited, subject to regulatory approvals. The transaction was completed on 25 January 2024 after payment of US$85 million, with National Cement acquiring approximately 99.94 percent of Cimerwa's shares. The new owner announced plans to invest a further US$60 million in operations, with objectives including improving efficiency, increasing output and lowering cement prices for consumers. Completion of the transaction resulted in Cimerwa's shares being removed from the Rwanda Securities Exchange. Cimerwa is now part of National Cement's East African operating network, which includes businesses in Kenya, Uganda and Rwanda.

Cimerwa Cement Limited was established in Rwanda in 1982 with annual production capacity of approximately 50,000 metric tonnes. Its initial operating model was based on a build-own-operate-transfer arrangement under which the Chinese company CBMC managed the plant. The facility became an important part of Rwanda's industrial base and domestic construction-supply system. Operations were suspended during the 1994 Rwandan genocide. The conflict caused severe human loss at the company, with 53 employees reported to have died. After operations resumed, Cimerwa expanded its production capability. By 2001, annual capacity had reached approximately 100,000 metric tonnes. The company was privatized in 2006 through the Rwanda Investment Group. Ownership moved to a group of Rwanda-based institutional shareholders. Pretoria Portland Cement Company, a South African cement producer also known as PPC, acquired a 51 percent interest in Cimerwa in 2013 for US$69.4 million. Cimerwa introduced a new corporate identity in 2015 following the ownership change and subsequently operated as a majority-owned PPC subsidiary. Rwandan shareholders retained the balance of the equity, although their 49 percent holding was reported as being available for sale by 2019. Cimerwa's principal production site is in Muganza Sector, roughly 10 kilometres north of Bugarama in Rusizi District, Western Province. The factory is about 33.5 kilometres by road from Cyangugu, the district's largest urban centre. Kigali serves as the location of the company's offices. The plant has installed capacity of approximately 600,000 metric tonnes per year and relies on imported coal from Malawi and Tanzania to fire its kilns. For several years the plant operated below its installed capacity. Before the major upgrade associated with the late 2010s expansion, annual production was reported at roughly 350,000 tonnes, below 60 percent of the plant's rated capacity. The upgrade raised reported production potential to approximately 441,223 tonnes per year, or around 74 percent of installed capacity. The project was intended to increase local availability and reduce Rwanda's need to import cement. Earlier production levels had been insufficient to meet the country's full monthly demand, making capacity expansion strategically important for the national construction sector. Cimerwa's branded portfolio has included four principal products. SUREBUILD is a 42.5N premium cement intended for heavy construction and demanding structural work. SURECEM is a 32.5N all-purpose cement used in concrete, mortar, plaster and brickwork. SUREROAD is a 32.5N product designed for road-construction applications. SUREWALL is a 22.5X masonry cement intended primarily for plastering and brick joining. The ownership structure changed again in 2023. In November, shareholders signed agreements to sell 99.9 percent of Cimerwa to National Cement Holdings Limited, a Kenya-based cement group with operations in Kenya, Uganda and Rwanda. The transaction required regulatory review in South Africa, Rwanda and the Common Market for Eastern and Southern Africa. On 25 January 2024, National Cement completed the acquisition after paying US$85 million and obtained approximately 99.94 percent of Cimerwa's shares. The new owner announced plans to invest a further US$60 million in the business to improve operational efficiency, expand output and reduce the price of cement for consumers. Following completion, Cimerwa's shares were to be delisted from the Rwanda Securities Exchange. The company remains an active cement manufacturer under National Cement ownership.

• 2024

  National Cement completes the acquisition

  [1]Cimerwa Cement Limiteden.wikipedia.org

  National Cement acquires approximately 99.94 percent of Cimerwa's shares, and the business begins operating under its new ownership structure.

• 2023

  Sale to National Cement is agreed

  [1]Cimerwa Cement Limiteden.wikipedia.org

  Shareholders sign agreements to sell 99.9 percent of Cimerwa to National Cement Holdings Limited, subject to regulatory approvals.

• 2018

  Production facility is upgraded

  [1]Cimerwa Cement Limiteden.wikipedia.org

  An upgrade increases reported effective annual output potential to approximately 441,223 tonnes, compared with roughly 350,000 tonnes before the project.

• 2015

  New corporate identity is introduced

  [1]Cimerwa Cement Limiteden.wikipedia.org

  Cimerwa adopts a new corporate identity reflecting the company's ownership under PPC.

• 2013

  PPC acquires a majority stake

  [1]Cimerwa Cement Limiteden.wikipedia.org

  Pretoria Portland Cement Company acquires 51 percent of Cimerwa.

• 2006

  Cimerwa is privatized

  [1]Cimerwa Cement Limiteden.wikipedia.org

  The business is privatized under the Rwanda Investment Group and ownership passes to Rwanda-based institutional shareholders.

• 2001

  Capacity reaches approximately 100,000 tonnes

  [1]Cimerwa Cement Limiteden.wikipedia.org

  A capacity expansion raises the plant's annual production capability to approximately 100,000 metric tonnes.

• 1994

  Plant operations are suspended during the genocide

  [1]Cimerwa Cement Limiteden.wikipedia.org

  Production is suspended during the Rwandan genocide, during which 53 employees are reported to have died.

• 1982

  Cimerwa is established

  [1]Cimerwa Cement Limiteden.wikipedia.org

  The company begins operations with reported annual capacity of approximately 50,000 metric tonnes under a build-own-operate-transfer arrangement managed by CBMC.

A domestic Rwandan cement producer positioned around reliable local supply, construction-grade performance and reduced dependence on imported cement.

• Premium Portland cement

  SUREBUILD

  SUREBUILD is a 42.5N premium cement positioned for heavy construction and demanding structural applications. It is intended for projects requiring higher-performance cement, including substantial building and infrastructure work.

• General-purpose Portland cement

  SURECEM

  SURECEM is a 32.5N all-purpose cement for common construction uses. Its stated applications include concrete, mortar, plaster and brick joinery, making it the broadest-use product in the reported Cimerwa range.

• Road-construction cement

  SUREROAD

  SUREROAD is a 32.5N cement developed for road-construction work. It is presented as a more specialized product than the company's general-purpose cement and is intended for infrastructure applications.

• Masonry cement

  SUREWALL

  SUREWALL is a 22.5X masonry cement designed for plastering and brick joining. Its positioning focuses on wall-related finishing and masonry work rather than high-load structural applications.

• 2024

  National Cement completes the acquisitionM&A

  Background

  The agreed purchase required regulatory approvals in South Africa, Rwanda and COMESA.

  Action taken

  National Cement paid US$85 million to acquire approximately 99.94 percent of Cimerwa's shares and announced plans for a further US$60 million operational investment.

  Aftermath

  The company was expected to improve efficiency, increase production and reduce consumer prices. Cimerwa's shares were removed from the Rwanda Securities Exchange.

  Acquisition consideration. US$85 million (25 January 2024)

  Source

• 2023

  Sale to National Cement is approved in principleM&A

  Background

  Cimerwa was operating as a majority-owned subsidiary of PPC, with the balance of shares held by Rwandan shareholders.

  Action taken

  Shareholders signed agreements to sell 99.9 percent of Cimerwa to National Cement Holdings Limited, subject to regulatory approval.

  Aftermath

  The transaction was completed in January 2024, moving Cimerwa into National Cement's East African group.

  Source

• 2018

  Capacity upgrade to strengthen domestic supplyStrategy

  Background

  The plant had been operating below its installed capacity, while domestic cement demand exceeded local production.

  Action taken

  Cimerwa upgraded its Rusizi production facility to improve operating efficiency and increase effective output.

  Aftermath

  Reported annual output potential increased to approximately 441,223 tonnes, reducing the gap between domestic production and national demand.

  Source

• 2013

  PPC takes majority ownershipM&A

  Background

  Cimerwa was being developed as a privately owned Rwandan cement producer after its 2006 privatization.

  Action taken

  Pretoria Portland Cement Company acquired a 51 percent stake in Cimerwa for US$69.4 million.

  Aftermath

  Cimerwa operated as a majority-owned PPC subsidiary and adopted a new corporate identity in 2015.

  Acquisition consideration. US$69.4 million (2013)

  Source

1. 1Cimerwa Cement Limiteden.wikipedia.org