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By John Oyuke
East African Portland Cement Company has launched a Sh1.8-billion project that will double its production capacity in the next one year.
Eng. John Nyambok Managing Director, said the higher production capacity would enable the cement-maker meet rising demand for cement locally and regionally.
"This investment will also assist us reduce our milling costs as it accommodates a more favourable and cheaper mix structure without compromising on quality," he said.
He was speaking during groundbreaking for the company’s Cement Mill No 5 presided over by Trade and Industry minister Mukhisa Kituyi in Athi River.
Mr Benson Ndeta, Portland’s board chairman, dismissed a recent article in a regional newspaper suggesting that the company planned a merger with Bamburi.
"I would wish to clarify that the story only represented the views of the authors and did not originate from our quarters," he said, but reiterated that Portland would continue to embrace partnerships and synergies at the industry level in the event of cement shortages.
This, he added, was to ensure the country’s march to the economic powerhouse status as envisaged in Vision 2030 is not curtailed.
Kituyi remained non-committal on whether a merger proposal has been handed to the Government for approval. He explained that he was not at liberty to talk about proposals before the Capital Markets Authority (CMA).
He, however, hinted that a number of proposals had been forwarded to CMA and include reduction of the stake in EAPCC held by French cement giant Lafarge (also a Bamburi shareholder), a merger of all three local cement manufacturers and others.
Kituyi cautioned the Portland management that coming days would be challenging, especially when Egypt resumes exporting cement into Kenya. He asked the company to continue leveraging its investment in all areas that guarantee a competitive edge, sustainability and value creation for all stakeholders.
Ndeta said with the new mill, which is planned for commissioning in September next year, Portland’s current annual capacity of 720,000 metric tonnes would be increased to about 1.4 million metric tonnes. He explained that the new mill would churn out 80 tonnes of cement per hour. |
