Corporate News
Co-op Bank eyes Ethiopia joint venture
By HERBLING DAVID
Crown Paints
has announced plans to build a Sh701 million ($8 million) factory in
Ethiopia next year, having started production at its Arusha plant in
January.
The Nairobi bourse-listed paint maker invested Sh300 million
in the Tanzanian factory as part of a strategy to grow income from the
regional market and cut reliance on Kenyan, which accounts for 92 per
cent of total sales.
The Ethiopian plant will have a production capacity of one million litres of paint per month and will be funded through debt.
Crown Paints will from August establish a
manufacturing plant in Kisumu at a cost of Sh263 million ($3 million) to
supply the Great Lakes market with economy grade paints.
“We want to establish a large plant in Ethiopia.
It’s a special market and we’re talking to the government there,” said
Rakesh Rao, group chief executive at Crown Paints AGM held yesterday.
“We want to consolidate our presence in the regional market with the
plants in Arusha and Kisumu.”
Mr Rao said high-end premium brands make up 75 per
cent of Crown Paints’ sales in Kenya while economy brands account for 70
per cent of regional turnover, hence the decision to manufacture this
line of paints in Kisumu and Arusha.
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