Indian firm to build cement plant
Construction of the plant is due to kick off this month and it will have an initial annual capacity of 0.6 m tonnes
01/02/2010 – Sanghi Cement of India is teaming up with local firm Cemtech to put up a Sh8 billion cement plant in the country with a view to supplying the south Sudan market, a government official has said.
The permanent secretary at the Ministry of Industrialisation, Mr John Lonyangapuo, said Thursday that the companies have bought 650 acres in the remote West Pokot region in western Kenya and that they will lease more land with lime deposits from the local authority and pay royalties.
“This type of investment will simply open northern Kenya in a very massive way because the government will now have to pay attention and build the Kitale-Kapenguria-Lodwar-Sudan road because this product has to go to Sudan,” Lonyangapuo said.
Lonyangapuo said the company would also install a Sh2 billion coal-fired energy plant to generate 60 megawatts of power. About 17-20 MW will be for its own use, while the rest will be plugged into the national grid once the firm has a power purchase agreement with the Kenya’s electricity distributor.
Kenyan and Ugandan companies supply most consumer goods and financial services to neighbouring south Sudan, and they are positioning themselves for expansion should the region that is emerging from years of war cede from the north at a referendum set for next year.
“We need to take advantage of the market in southern Sudan and we need the foreign exchange. Uganda is also quite near,” said Lonyangapuo.
Construction of the plant is due to kick off in February and it will have an initial annual capacity of 600,000 tonnes –chiefly for south Sudan, East Africa’s least tapped market.
Kenya’s four cement firms — Bamburi, East African Portland, Athi River and a subsidiary of Uganda’s Tororo Cement — produced 3.1 million tonnes last year. According to analysts, Kenyans consumed 2.6 million tonnes and they forecast demand will grow by 10 percent this year.
