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.