Cement News tagged under: Kenya

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Turbulent times for Africa?

17 September 2019, Published under Cement News

For the cement sector, turmoil has probably come to a head in many parts of Africa. Cement demand has slowed or fallen back into the red in many African countries, while overcapacity and low utilisation rates are characteristic of many markets. However, much of this turmoil is self-inflicted. Tony Hadley provides an uncompromising assessment of the industry on the continent and examines the root causes of business failure in some key markets. By Tony Hadley African Advisory. A perfect...

West Pokot cement plant faces further construction delays

12 September 2019, Published under Cement News

Simba Cement has come up against logistical difficulties in the construction of its West Pokot cement plant in Kenya. The project has been in planning for a decade and Simba Cement (National Cement - Devki Group) took over the project when it acquired the Indian company Cemtech Ltd earlier this year. The completion of the factory in Ortum is expected to be delayed by one year and Simba Cement intends to hold public consulations and forums with local residents about the process having receiv...

Bamburi Cement 1H19 pretax profit declines

23 August 2019, Published under Cement News

Bamburi Cement reported a turnover of KES18.663bn (US$181.18m) in the1H19, up 0.6 per cent when compared with KES18.556bn in the 1H18. The Kenya-based cement producer’s pretax profit fell to KES23m from KES722m in the first six months of 2018. The company’s profits were impacted by higher energy and logistics costs. However, profitability is expected to recover in the second half of the year.

Kenya's cement exports decline 65% in 1H19

22 August 2019, Published under Cement News

Kenya’s domestic cement exports have recorded a 65.3 per cent decline in value to KES362.28m (US$3.5m) in the first six months of the year, against KES1.04bn in the 1H18, according to preliminary cement exports statistics from the Central Bank of Kenya (CBK). The country’s cement exports have been declining since 2015, with the decline attributed to new grinding plants and brownfield grinding expansions in Uganda and Tanzania, reports Business Daily. "A lot of Kenyan cement was supplyi...

East African Portland Cement withdraws dismissing workforce notice

12 August 2019, Published under Cement News

Kenya’s East African Portland Cement Co (EAPCC) has withdrawn the notice about the plan to dismiss its workforce of 800, saying it would make a further statement about restructuring the company. "(The) notice has been withdrawn," Acting Managing Director, Stephen Nthei said in a letter addressed to the Kenya Chemical Workers Union and seen by Reuters. "A fresh replacement notice on the intended company restructuring and staff rationalisation shall be circulated in due course," the letter s...

National Cement's acquisition of ARM blocked

22 July 2019, Published under Cement News

The acquisition of ARM Cement for US$50m by National Cement has hit a legal block. ARM's former CEO and leading shareholder, Pradeep Paunrana, has challenged the sale in the High Court, saying that ARM Cement has been undervalued and that his consortium had offered a bid of US$65m for ARM Cement. The administrator of the sale, PricewaterhouseCoopers (PwC), claims that the US$65m bid was turned down becasue it was not accompanied by proof of funds among other reasons. Instead, PwC approved t...

Kenya's Savannah Cement plans KES5bn grinding plant in major expansion plan

15 July 2019, Published under Cement News

Savannah Cement is currently undertaken a KES5bn expansion of its grinding plant at Kitengela, Kenya, according to the company’s MD, Ronald Ndegwa. The project sees the construction of a 1.2Mta grinding unit, which will double the company’s current installed capacity. Central to the plant will be an energy-efficient vertical grinding mill, supplied by FLSmidth. The new facility is expected to be commissioned by the end of the year. “At Savannah Cement, we are banking on the regional ma...

Kenya reports decline in cement exports

03 July 2019, Published under Cement News

Kenya has reportedly seen 9017t of cement exports in the first quarter of 2019, which represents a value of KES11m (US$106,940). This is a significant decline when compared to the 1Q17, which saw export volumes of 98,824t at a value of KES877m, according to the Kenya National Bureau of Statistics.

Mombasa Cement orders mill from Gebr Pfeiffer

02 July 2019, Published under Cement News

Kenya’s Mombasa Cement has awarded Gebr Pfeiffer with a contract for an MVR 3750 C-4 mill for its second kiln line project, which is currently under construction at Vipingo, Kenya. The unit has a drive power of 2900kW and will be able to produce 150tph of OPC. The MVR 3750 C-4 mill in Tororo, Uganda, which has an identical design to the new mill Mombasa Cement already operates two cement mills from the Germany-based grinding specialist. In January 2016 the producer signed a c...

Kenya’s cement conundrum

03 June 2019, Published under Cement News

While recent times have seen the Kenya cement industry expand and new players arrive, the sector now faces a conundrum. While economic and construction forecasts indicate sound cement demand going forward, cement overcapacity has led to price pressures that show no sign of abating and which are affecting the bottom line of market players. A wave of industry consolidation in the short- to medium term cannot be ruled out. By Lisa Kimathi, Standard Investment Bank, Kenya. Despite forecas...