Kenya’s East African Portland Cement (EAPCC) will set up a factory in Uganda next year. The plans follow shareholders’ approval to transform what has been a distribution centre into a fully-fledged operation.
Mark Karbolo, EAPCC chairman, said the operation would be a subsidiary of EAPCC Kenya, and operate as EAPCC Uganda. He added that the plant would help increase distribution of its products in the region.
"Other than increase our market share in Uganda, it will enable us attack the markets of Rwanda, Southern Sudan and DR Congo where infrastructure and construction industries are growing," he said.
The cement manufacturer has yet to set the exact time frame and budget for setting up the Uganda plant, saying it has been waiting for the green light from its shareholders before proceeding.
Construction begins next year. Karbolo, who spoke yesterday at the company’s annual general meeting, also said the EAPCC has commissioned a coal fired plant, which is expected to save the company 30 per cent of current production costs. Cement plants are among the heaviest consumers of energy, and has been heavily affected by high oil prices in local and international markets.
"We will stop using heavy furnace oil in our production and turn to coal, a move that is expected to save us significant amounts (costs)," he said.