Hima Cement looks to export markets, Uganda

Hima Cement looks to export markets, Uganda
Published: 31 August 2010

Hima Cement, a subsidiary of Larfarge
 Group, has completed a major expansion project worth Ush265bn (US$118m) with
installed capacity of 10 million bags per year, as it seeks to satisfy growing
demand and environmental compliance requirements.

The investment is in line with regional cement producer’s efforts to bridge
output gaps and satisfy surging demand generated by boom cycles in the real
estate sector and massive public infrastructure projects.
With original output of seven million bags per annum and similarly modest
volumes from its sole rival Tororo Cement, Hima has been compelled to raise its
output to match demand pressures.

 “Our new production capacity is capable of eliminating need for cement imports
in the next two to three years. Advanced technology at the new plant will ensure
little or no dust emissions because of its ability to treat waste with both
normal and generator-driven power supply.”

A source at Hima Cement said: “Unlike the old plant that suffers from low
generator capacity during load shedding hours, the new plant boasts of higher
back up capacity, cleaner and consistent dust treatment cycles.”

With additional capacity at Hima, the firm’s total output per annum has
subsequently risen to 17 million bags while Tororo Cement’s capacity has grown
to 14 million bags, bringing the industry’s total annaul output to 31 million
bags against the current annual demand estimated at 25 million bags.

The surplus capacity is targeted for export to neighbouring markets such as
Rwanda and Burundi, leaving little or no need for imported cement.