German firm opens Sh1.2bn factory

Dick Purchase, BASF vice-president in charge of construction and chemical division for Africa, Middle East, Turkey and Russia, says the Sh1.2 billion factory in Mlolongo for the production of concrete mixture has capacity to produce 10,000 tonnes day. PHOTO | SALATON NJAU | NATION MEDIA GROUP  NATION MEDIA GROUP

In Summary

• The plant has the capacity to produce 10,000 tonnes of chemicals per shift, but forecasts a 30,000-tonne production due to the growing demand regionally.
• The chemicals are used for making concrete. They are usually added to a mixture of cement to harden the concrete, mainly in heavy-duty construction projects.

By JOSHUA MASINDE
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A German chemical company has opened a Sh1.2 billion manufacturing plant in Kenya.
BASF Global is eyeing major clients in road construction and cement manufacturing in eastern Africa.
The plant was opened yesterday on Mombasa Road, Nairobi.

“The logic of our investment is to tap into the growing cement and construction industry in the local and regional markets and to grow our share of our investment in the market,” the firm’s vice-president for Middle East, Turkey, Russia and Africa, Mr Dick Purchase, said in an interview.

The German multinational, is one of the world’s largest chemical manufacturers. It deals in chemicals and plastics, among others. It entered Kenya in 2011. The Nairobi plant will serve East and Central Africa.

The firm is also targeting road and rail construction sectors and the on-going energy and housing projects in the country. Most of the chemicals used in the construction sector have in the past come from China.

GROWING DEMAND

The plant has the capacity to produce 10,000 tonnes of chemicals per shift, but forecasts a 30,000-tonne production due to the growing demand regionally.

The chemicals are used for making concrete. They are usually added to a mixture of cement to harden the concrete, mainly in heavy-duty construction projects.

Kenya is a particularly strong market for construction chemicals in eastern Africa.

“BASF’s Africa strategy aims to double sales on the continent by the year 2020. The new production facility will meet the demands for multi-storey buildings, long-lasting infrastructural constructions and more energy efficiency in construction techniques,” said Mr Laurent Tainturier, senior vice-president for Middle East and Africa.