A consortium of Chinese and local investors is setting up a grinding plant expected to open early next year, reports the Business Daily.
The firm now known as Savannah Cement will break into the highly competitive regional market that has seen the entry of two new manufacturers in the past three years, as the existing players have raised their production capacities.
Benson Ndeta, the chairman at Savannah Cement and a former chair of the government-controlled East African Portland Cement, says his firm was keen on satisfying supply shortfalls since demand for cement is projected to overtake the installed supply within the next two years.
“Year-on-year growth of cement in the region is projected to exceed 14 per cent which the installed capacity cannot match,” Mr Ndeta said, revealing that 30 per cent of the company’s production would be sold in the countries outside the five East African countries.
Savannah Cement is a joint venture bringing together Savannah Heights—a consortium of local investors, Wan-Ho, a Chinese investment firm and Catic Cement sharing the stakes at 40 per cent, 40 per cent and 20 per cent respectively.