ARM Cement boosted by higher sales

ARM Cement, Kenya's second-largest producer, has reported an eight per cent advance in 2012 net profit and says it expects improved profitability on the back of new capacity.

Formerly known as Athi River Mining, the company said in a statement that net income advanced to KES1.25bn (US$14.6m) in the first 12 months of December. Cement sales rose 64 per cent after its market share increased in Kenya, Rwanda and Tanzania. That helped turnover increase by 39 per cent to KES11.4bn.

For the first two months of this year, sales have been higher than the same period of last year, leading the company to be optimistic that it will "register another year of strong growth and improved profitability on the back of new capacity in Tanzania,” the statement said. ARM Cement's new plant in Tanzania contributed three months worth of sales after it was commissioned in October, the company said.

Regional expansion

In Kenya, ARM Cement operates a 1500tpd integrated plant in Kaloleni, and a 2000tpd grinding plant in Athi River, has a total grinding capacity of 1Mta with cement production currently standing at 0.65Mta.

ARM Cement is the most recent player to arrive in Tanzania. Its new US$75m Dar es Salaam plant, which opened in October 2012, has a 0.75Mta capacity. It will be joined in 2014 by a US$120m, 1.5Mta works at Tanga. Once both units are up and running, ARM is expected to capture a 20 per cent share of the domestic market with exports estimated to account for 25 per cent of sales.

As part of its ongoing regional expansion, In December 2011 ARM Cement acquired a controlling stake in Rwanda’s second plant, Kigali Cement Company Ltd. This is a 0.1Mta grinding works located in Gitikinyami, 10km from the capital Kigali.

ARM also has greenfield projects at the planning stage in two more African countries and two further projects earmarked for 2016.