Going gets tough for cement companies

Chinese cement producers in Ethiopia say they are experiencing toughening market conditions as demand falls and competition in the market grows.

The slump has left an oversupply at many factories, putting pressure on some companies to look at surrounding markets to meet their targets. It has also meant a marked drop in local cement prices.

One of the country's largest Chinese cement companies, Zhong Shun Cement Manufacturing, says that when it first started production in July 2010, its cement was mainly being used for the construction of the huge Eastern Industry Zone, the country's first dedicated industrial park, located 40 kilometers from the Ethiopian capital, Addis Ababa.