Hima Cement, a subsidiary of the Lafarge Group, has embarked on the construction of a new plant worth US$93m (Shs165bn) at Namanve near Kampala.
The Kasese - based cement giant has contracted CBMI International to undertake the project, which is geared at boosting production capacity from the current 300,000t to over 500,000t to meet huge escalating on the local market and in the Great Lakes region.
While meeting the Uganda Investment Executive Director Dr Maggie Kigozi on Friday, the CBMI lead contractor, Mr Yao Tianhai said the company would use its international expertise to beat the 2008 deadline.
The new investment for which plans are in final stages, is expected to commence next year.
Hima Cement General Manager David Njoroge said the investment will involve expansion of the mine at Dura in Fort Portal and setting up a grinding factory at Namanve Kampala Industrial Business Park (KIBP).
The company will process the raw material into a semi-finished product (Clinker), which will be finally ground into cement at new plant.
Hima currently exports to DR Congo, Rwanda and Burundi and will soon venture into Southern Sudan.