RESUMPTION

East African Portland Cement recommissions plant

Pushes to increase production capacity.

In Summary

•The cement maker is now seeking to increase capacity to serve the growing regional demand for cement amid an infrastructure boom.

•The improved capacity is expected to boost the firm’s production ability to one million tonnes annually in the next two years, solidifying its role and position as a regional cement provider.

EAPC acting MD Mohamed Osman, Board Chairman Retired Brigadier Richard Mbithi, Investment,Trade and Industry CS Rebecca Miano and Industry PS Juma Mukhwana during a tour of the recommissioned EAPC factory in Athi River/ HANDOUT
EAPC acting MD Mohamed Osman, Board Chairman Retired Brigadier Richard Mbithi, Investment,Trade and Industry CS Rebecca Miano and Industry PS Juma Mukhwana during a tour of the recommissioned EAPC factory in Athi River/ HANDOUT

The East African Portland Cement PLC (EAPC) has resumed operations after a one-month closure for renovations and plant maintenance.

The cement maker is now seeking to increase capacity to serve the growing regional demand for cement amid an infrastructure boom.

The improved capacity is expected to boost the firm’s production ability to one million tonnes annually in the next two years, thereby solidifying its role and its position as a regional cement provider.

Acting managing director Mohammed Osman said the refurbished plant will increase efficiency, and greatly reduce spillage thus improving the work environment and wastage.

Industry, Trade and Investments Cabinet Secretary Rebecca Miano said the recommissioning of the plant marks a transformative moment for the country’s manufacturing sector, a key driver of economic growth, job creation, and industrialisation, which she noted has faced challenges.

“Despite the challenges, the government has remained resolute in its commitment to supporting the competitiveness and growth of local industries. One of the key initiatives in this regard has been setting ambitious targets for the manufacturing sector, including increasing its contribution to GDP to 20 per cent by 2027,” said Miano.

She added that the State’s efforts to revitalise the manufacturing sector were because of its commitment to enhancing competitiveness, efficiency, and sustainability, to make the manufacturing sector more vibrant and productive.

She said the government introduced the Export and Investment Promotion Levy of 17.5 per cent on the importation of clinker, whose aim is to reduce the reliance of local cement companies on imported raw materials and promote the growth of domestic industries.

Chairman of the company’s board, retired Brigadier Richard Mbithi, said that with the finalisation of the plant refurbishment and resultant improved production and efficiency, the firm’s board of directors was confident in the company's ability to accomplish production and revenue targets.

"With the finalisation of the plant refurbishment and resultant improved production and efficiency, we are confident that the company will accomplish the production and revenue targets. This will, in turn, translate into positive returns to the company’s shareholders in the form of dividends," Mbithi said.

The company undertook the first phase of maintenance two years ago and it involved the replacement of the kiln shell which was completed in September 2022.

This led to improved clinker and cement production and resulted in a 38 per cent increase in revenues.

This assurance reflects the dedication of EAPC PLC towards maximising production capacity and enhancing operational efficiency.

The company's commitment to meeting and exceeding targets underscores its pivotal role in driving economic growth and prosperity in Kenya, management said.

The recommissioning of the EAPC PLC plant represents a significant step forward for the nation's industrial landscape.

It not only demonstrates resilience and innovation but also reinforces Kenya's position as a leader in the region's manufacturing sector.

As part of its commitment to environmental sustainability and corporate social responsibility, EastAfrican Portland Cement PLC also undertook a tree planting initiative during the recommissioning event.

Recognising the importance of environmental stewardship, the company planted trees within the factory premises, contributing to the preservation and restoration of local ecosystems.

This initiative reflects EAPC PLC's proactive approach toward minimising its environmental footprint and fostering a greener future for generations to come.

As the company embarks on this new chapter, it remains steadfast in its commitment to delivering value to shareholders, fostering economic development, and contributing to the nation's prosperity, management said.

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