Kampala — HIMA Cement last week opened its new plant set to raise annual production and supply of cement by an additional 500,000 tonnes.
The opening of the plant now increases Hima Cement's annual production capacity to 850,000 tonnes from the previous 350,000.
"I believe the new investment will go along way in increasing the supply of cement in the local market, meaning Uganda will cease to be a net importer of cement," Hillary Onek, the energy minister, said in a sptatement.
Peter Lokeris, the minerals state minister, represented Onek during the launch at the Kampala Serena Hotel last week. "I expect this position will save our economy in excess of sh100b annually, which otherwise would have been lost in foreign exchange," Lokeris said.
Demand for cement, a key economic indicator, is expected to remain highthroughout this year as a result of infrastructure projects and home building currently underway in the country, industry players say.
In 2008, due to supply shortages accruing from run-away demand from the construction industry, Uganda and four other East Africa Community partner states lowered the common external tariff for cement from 40% to 25% to permit importation of cheap cement from China and Pakistan.
This apparently increased the state's foreign exchange outflow through hiked import expenditure. "We want to assure the market of high quality products manufactured under friendly environmental conditions, which observe global standards in emissions," Hussein Minsi, the chairman of Hima Cement, said. He added that many jobs would be created.
Martin Aliker, a director at the firm, said the opening of EAC borders would enable the firm harness more opportunities.
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