ARM expects new capacity to boost earnings

Kenya’s ARM Cement said it expects earnings to increase at a faster pace this year thanks to its new capacity in Tanzania.

In an interview with Reuters, ARM Cement’s chief executive, Pradeep Paunrana, told Reuters that the company is looking to increase its “top line and bottom line by 35 per cent over last year,” and expects similar growth next year regarding its expectations for profitability and sales..

The company commissioned a 0.75Mta grinding plant in the Tanzanian capital of Dar es Salaam a year ago, adding to the company’s exisiting 1Mta capacity in Kenya. Another 1.5Mta plant will be launched in 2014 in Tanga, Tanzania. ARM now plans to invest US$15-20m in its cement operations in Rwanda to help double its market share.