Corporate News
Bamburi Cement factory in Athi River. Photo/File
By SIMON CIURI
Posted Tuesday, December 23 2014 at 19:56
Posted Tuesday, December 23 2014 at 19:56
In Summary
- The new grinding plant will be based in Kitengela town where its current manufacturing factory stands, with management saying the investment aims to help to meet growing demand for its products in the market.
- It will be funded through internal cash reserves and is expected to start early next year.
Athi River-based cement maker, Savannah, will spend
Sh18 billion ($200million) next year to expand its milling plant and
increase its production capacity.
This will be its second plant. The project will be funded
through internal cash reserves and is expected to start early next year.
The new grinding plant will be based in Kitengela
town where its current manufacturing factory stands, with management
saying the investment aims to help to meet growing demand for its
products in the market.
“Once the two plants are installed, Savannah Cement
will be taking pole position as a truly integrated and eco-friendly
cement manufacturer,” said Savannah Cement managing director Ronald
Ndegwa. “We shall also be expanding our product range to meet our
customers’ demands.”
Mr Ndegwa said the installation of the second
milling plant and the clinker production factory is part of the firm’s
strategy to operate a fully-integrated cement manufacturing business.
Two months back, Savannah Cement announced that it
had secured deals with contractors to supply them with bulk of cement in
a growth strategy targeting increased sales.
The contractors are involved in the building of the
Sh22.3 billion Garden City Mall, Centum’s Two Rivers Development, and
the upcoming Sh1 billion Madiba Mall in Nyeri and a shopping arcade in
Kakamega.
The Savannah managing director had earlier told the Business Daily
that the company has also won contracts to supply cement for government
projects including construction of Terminal 4 at the Jomo Kenyatta
International Airport (JKIA) in Nairobi, the ongoing building of the
Sh55.6 billion JKIA greenfield terminal and the Sh4.5 billion Ruiru
sewerage plant.
Savannah began operations in July 2012. The company
is said to have a cement grinding factory with a capacity of 1.5
million tonnes a year.
Locally, Bamburi Cement is Kenya’s largest cement maker followed by East African Portland Cement and ARM Cement according to a cement market report by Standard Investment Bank dated October 2013
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