You should be celebrating that uhurus big4 agenda on housing will be powered by cheap dangote cement(50% off). As concerning kenyan cement companies, let them eat their hypocrisy with their KEPSA Jubilee wing.The same crocked government they serve will introduce VAT on input items such as diesel & petrol for trasportation of raw materials making their cement expensive
BTW Kenya depends on Tanzania for clinker. ARM exports nearly half of hthe clinker they produce.
INVESTING NEWS
FEBRUARY 23, 2017 / 9:38 AM / A YEAR AGO
ARM Cement says to boost its Kenya plant capacity in next 12-14 months
George Obulutsa
NAIROBI (Reuters) - ARM Cement plans to expand grinding capacity at its one million tonne-a-year plant in Kenya by 50 percent over the next year to meet rising demand, its chief executive said.
ARM is the second biggest cement producer in East Africa and also has operations in Tanzania and Rwanda.
In 2016, it received a $140 million equity injection from Britain’s CDC Group, which took a 40 percent stake.
Pradeep Paunrana, ARM’s managing director, said in an interview late on Wednesday the money was used to pay debts.
He said its Kenyan plant was at full capacity, and expansion was needed to meet the growing demand for cement in the country.
“We are completing a grinding plant expansion in Athi River which will give us an additional 500,000 tonnes of cement in the next 12 to 14 months,” he told Reuters, referring to the Kenyan plant, which has not been expanded since 2010.
The extra capacity will boost its use of clinker produced from its plant in Tanga, Tanzania, with an annual capacity of 1.2 million tonnes of the raw material.
Paunrana, who did not give the cost of adding production capacity, said it was being funded by internal resources.
He said ARM Cement had an equivalent of $125 million in debt, and will pay it down over a four-year period starting next year.
“Until we use the existing capacity, the company has no plans for increasing any debt or raising any new equity and the internal generation will be used to carry out the improvement projects and to start paying down debt,” Paunrana said.
ARM Cement says to boost its Kenya plant capacity in next 12-14 months
