Kenya’s ARM Cement Rolls Out East African Expansion Plans

Bya897204973

Updated Mon, 24 Nov 2014 15:54:05 GMT

VENTURES AFRICA – East Africa’s largest cement maker, ARM Cement Ltd, says it is increasing investment in plants across the region as the battle for the cement market in East Africa heats up.

In view of this, the company is embarking on a multi billion-shilling investment programme that will see it complete some projects and start off new ones from next year.

The company, which has plants in Kaloleni and Athi River in Kenya, as well as Dar es Salaam and Tanga in Tanzania, will complete one more grinding plant in Tanga in 2015. The new plant has capacity to produce 2,500 tonnes of cement daily.

ARM Cement Chief executive, Pradeep Paunrana, said that the Tanga project will be followed by the expansion of the company’s recently acquired Kigali Cement. The company had held a 35 percent stake in the only privately-owned cement company in Rwanda since 2011, but earlier this year bought out the remaining 65 percent stake. The Rwanda cement grinding plant, which has capacity to produce 100,000 tonnes per annum, will now have its capacity increased to 200,000 tonnes per day.

“Our next major growth will be in Kenya, a growing market that is still heavily reliant on imported clinker,” said Paunrana.

The Nairobi Securities Exchange (NSE) listed firm plans to build a 2.5 million tonnes per annum integrated clinker and cement plant in Kenya’s Kitui County.

The cement maker’s shares ended the day at Sh85 per share at the NSE on Friday.