Tororo Cement expands, Uganda

Tororo Cement expands, Uganda
Published: 31 January 2011

Tororo Cement Industry, a local manufacturer of cement will complete the expansion of its production facility worth Ushs100b ($50m) by June 2011.

According to the Chief Marketing Manager, Mr. Alok  Kala, this may bring down the price of cement and other building materials hence boosting the construction industry as a result of increased production.
Cement, a major construction material witnessed volatile price trends forcing a retail price of 26,500 ($12) a bag towards the end of 2010.

Uganda Bureau of Statistics (UBOS) attributed the increase in prices to cement imports of cement.                                                                                                                                                        

Earlier last year, local cement manufactures were demanded a level playing field with imported cement from Asia and the Middle East where production is subsidised.

Currently, there’s a significant drop in imports of cement which have been attributed to the increased local production and increased local competition.

Industry experts say the decline in prices is mainly due to increased local capacity as a result of increased investments that include the new Hima Cement factory in Kasese. The new plant has increased Hima’s production capacity from 350,000tpa to 850,000tpa.  Kala said the  expanded Tororo Cement plant will more than double the capacity of the factory from the current output of 1Mta to 2.2Mta.

In so doing, the factory is set to create more employment opportunities for the locals.

He also added that they plan to venture out into other markets like Tanzania in the near future so as to take advantage of the East African Common Market.

Manufactured goods from Uganda have found a large market, which now extends to the Central African Republic, which neighbours DR Congo.