Mugher Cement Factory, one of the cement factories in Ethiopia, earned 23.5 million Birr during the first 6 months of the current fiscal year. This was a mere 31 percent achievement of the target the factory set at the beginning of the fiscal year.

According to Fortune, the under achieving was attributed to technical problems, shortage of electricity and shortage of spare parts.

The target set by Mugher for the first half of the year was to sell 876,400 tons of cement. Yet the factory only able to supply 414,584 tons. This is almost half of what the company supplied last year for the same period.

According to Fortune, the competition in the market has reached to a point where it directly affects the price. The market top players currently are Dangote and Derba cement factories. Other than these 2, there are 20 factories operational in the country.

Currently Ethiopia’s annual production capacity has exceeded 15 million tons. Neighboruing Kenya’s capacity stands at 6.3 million tons.

Mugher Cement was founded in 1984 being based in the capital city, Addis Ababa.

Source: Fortune