Uganda: cement firm branch to change its status
East African Portland Cement Company’s shareholders have unanimously voted to allow the company change its Uganda branch into a limited company to tap into growing region market.
The company’s annual general meeting passed a resolution to convert Uganda branch into East African Portland Cement Company Uganda thus making it a wholly owned subsidiary of East African Portland Cement Company.
Managing director Kephar Tande told shareholders at the company’s headquarters in Athi River that the conversion would enable the company tap into the growing East African region cement market.
"This trend is likely to be sustained for a long time owing to the ongoing reconstruction of the neighbouring countries of Southern Sudan, Rwanda and Burundi, who are emerging from years of civil strife," he told the meeting last week. "There are also the promising markets of western Uganda, Ethiopia and even Somalia."
Mr Tande said that in response to fierce competition, the company is seeking to create demand rather than supply-driven business model by opening sales offices in Burundi, Sudan, Uganda and Democratic Republic of Congo.
Chairman Mark ole Karbolo said that following reduced demand in Asia and Far East, cement producers in those regions are dumping their produce in local markets.
Published under Cement News
