Athi River Mining (ARM) Limited has announced an investment of more than KES12.5bn (US$166m) for expansion of its cement making facilities in Kenya and Tanzania.
The ambitious expansion program is scheduled to be completed by 2010 and is expected to significantly increase cement production capacity to meet growing demand in the region.
The company’s Managing Director Pradeep Paunrana said that the company will double the capacity of its cement plant at Kaloleni in Mombasa to over 750,000tpa through an upgrade of its existing facility and the building of a new grinding plant at Athi River.
The MD speaking at the company’s headquarters in Athi River, also said that the company is taking a long term view in its strategy and anticipates a significant growth in demand of cement in the region with a total investment of KES2.5bn from the company.
"That’s why we are confident that it’s a very good time to be investing to build our cement production capacity significantly despite the immediate prevailing economic conditions, and we are also optimistic about the business potential in Africa" said Paunrana
He said that Athi River Mining had simultaneously commenced the construction of a 4500tpd cement plant at Dar-es-salam and Tanga in Tanzania at an estimated cost of KES10bn.
He said that the combined increase of capacity in Kenya and Tanzania will make Athi River Mining Ltd the second largest manufacturer of cement in the region within the next three years.
The managing director said the company also produced other products such as lime, fertilizers, sodium silicate, minerals and associated building products.