Kenya based cement maker Athi River Mining plans to start production in its two Tanzania plants early next year, company officials said.
The Dar es Salaam plant will have a capacity of 750,000 tonnes and should be operational by February. The second plant to be based in Tanga is expected to be running by September 2012 and will have an annual capacity of 1.5 million tonnes. The combined capacity will effectively make ARM the single largest integrated cement producer in the region.
“We have invested more than $145 million for the construction of the two plants with an eye at boosting cement production in the region,” said company managing director Pradeep Paunrana.
ARM has over 1,200 construction staff working at the two sites. The company hopes to employ close to 1,500 staff after the commissioning of the plants.
The plants will also generate over 5,000 jobs in the service sector through the distribution, logistics and dealer networks.
The company’s plant in Tanga sits on a six kilometre stretch of limestone deposits that could outlive 200 years of mining, says ARM managing director
Mr Paunrana said demand for cement in the region would probably grow at twice the current rate of five to six per cent in the next few years.
“Economic growth could be much faster in Tanzania and we expect cement consumption to double in the next five to seven years,” Mr Paunrana said.
East Africa’s cement sector is facing trying times.
The per capita consumption of cement remains well below the average for sub-Saharan Africa, analysts at Renaissance Capital said last month.
The region is on a massive infrastructure upgrade, which should push up demand for cement, as countries invest in roads, ports, bridges, railway lines as well as energy generation projects.
Kenya, which last month commissioned a $144 million cement firm — Kenya National Cement with a capacity of 2.5 million metric tonnes — and Tanzania, which is endowed with limestone deposits, are building up huge surpluses.
Statistics indicate that the combined production of Tanzania’s three cement manufacturers — Tanzania Portland Cement Company, Mbeya Cement Company Ltd and Tanga Cement Company — stands at 1.2 million tonnes against a demand of 1.6 million tonnes a year.
Due to the shortfall, Tanzania has been forced to rely on imports.
A bag of cement in Dar es Salaam is selling at between Tsh 13,000 ($8.6) and Tsh 14,000 ($9.3), while in upcountry stalls the same bag can be purchased at Tsh16,000 ($10.6) or more due to transport costs.
No comments:
Post a Comment