Cimerwa, the country’s largest cement producer is set to purchase new equipment after acquiring a letter of credit from Kenya Commercial Bank (KCB) Rwanda, the factory’s management has said.
Last year a number of the company’s investment plans were affected by the global recession.
In an interview with Business Times recently, Fiacre Birasa, Chief Executive Officer (CEO) of Rwanda Investment Group (RIG) said that KCB has issued a letter of credit for the Cement Factory that worth Rwf26million that has boosted the Company’s capital to order factory equipment abroad.
"We have ordered the equipment from China and by the end of 2011 the plant will be operational using a dry process. The new plant will make CIMERWA more competitive within the Rwanda market, as well as opening up new markets in the region," he said.
CIMERWA currently uses the wet-process method however Birasa says with peat production underway, this will help to trim-down the company’s energy costs with the company targeting to convert the current 100,000t plant to 80 per cent peat and 20 per cent fuel technology.
"Currently there is a lot of speculation on cement which pushes the prices up because supply is limited. However by end of next year we will have enough quantity and quality cement to kill the speculation as the prices will come down," Birasa observed.