By MARK KAPCHANGA
India-based cement producer giant Sanghi Group,
whose subsidiary Cemtech Sanghi has been granted exclusive mining rights
by the Kenya government for a project in Pokot district near the
Kenya-Uganda border, will produce over 1.2 million tonnes of cement a
year.
Initially, the company had proposed in its
business plan to produce over 600,000 tonnes per annum in the initial
phase “and expand to over one million tonnes in the subsequent phases,
subject to the availability of additional limestone.”
The upward revision was madeby the company’s board
members a week ago after successful completion of a nine-month
geological evaluation study conducted by two international firms.
Sanghi Group, which owns one of the world’s
largest single stream lignite-based cement plant in India, produces over
20 million tonnes of cement per annum at its fully automated factory in
India.
The factory uses modern technology developed and supplied by Fuller International of the US.
Industry players say the entry of Cemtech into
Kenya will increase competition in the region’s cement sector,
especially at this time when producers are expanding their capacities.
“Sanghi has developed world-class infrastructure
facilities at its cement plant in India and has revolutionised the way
cement is produced,” said Rajesh Rawal, the group’s managing director in
charge of Africa investments, adding, “East Africa will benefit
significantly from Sanghi’s world class technology when the group
completes its Pokot cement project in the next 33 months.”
The official groundbreaking ceremony for the
construction of the ultra-modern cement plant in Pokot scheduled for
August is now expected in September after it became apparent that
President Mwai Kibaki and Prime Minister Raila Odinga, who are expected
to preside, were not available in August.
According to Mr Rawal, the group expects to
directly employ more than 1,700 people and over 5,000 people indirectly.
The group was recently recognised by the international Cement Review of
2009 for its contribution to the sector.
Currently, the group is contemplating a major
investment in wind, solar and biofuel projects in Kenya in a joint
venture with a major Indian company.
Only recently, Cemtech Sanghi signed a memorandum
of understanding with Danke Electricals to manufacture and retrofit
transformers in Kenya.
The project is expected to take off after the
company’s proposal is discussed and accepted by the government in the
next few months. This project is expected to create more than 200 jobs.
Mr Rawal told The EastAfrican that the
government’s move to improve the business climate through
infrastructural development, alternative energy exploitation and
reduction of licensing requirements should be exploited for the good of
the country’s economy
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