The East African Portland Cement (EAPC) has revealed plans to expand within the East African Community member countries following its KES 500 million plant upgrade and introducing a new cheaper Green Triangle cement brand.
The Athi River-based cement processor has begun producing its own clinker, the main material used to grind cement, following a replacement of part of its kiln shell that had been dilapidated for years, causing cuts on production.
East African Portland Cement rolled out an ambitious five-year business modernisation and expansion cycle in 2021 in a bid to turn the giant cement plant into profitability.
The firm’s CEO, Oliver Kirubai, said the ambitious five–year strategic plan aimed to revive and turn around the plant’s fortunes had recorded an upward trajectory.
“Our ambitious new business strategy is anchored on major investments in our factory to give us a platform to produce and outgrow cement demand in East Africa. Despite the high costs of energy and an old clinker line, we have already seen steady results in the last six months from the ongoing business reorganization,” Mr Kirubai as quoted by Nation.
He said the company’s structuring would enable it to settle debts and be able to inject more capital as it eyes the broader East African market.
“We are at the tail end of our balance sheet restructuring and this coincides with the start of a new business period of a disciplined, performance-driven culture .We expect to outgrow the regional cement market. We are looking at going beyond Kenya into Rwanda and DRC as well,” he said, adding that the company is also targeting growth in its volumes and brand portfolio.
East African Portland Cement expects the cement production in the country to be driven by key government agenda on housing and infrastructure projects expected to hit KES 3 trillion in the next five years through funded and owned projects.
“We are steadily on a new strategic business cycle dubbed New Dawn, to re-claim our market share and support Kenya’s push for infrastructure growth and affordable housing. Over the next five years, we aim to increase value to our shareholders through a concentrated focus on the Athi River plant modernisation and a rapid market growth supported by a performance driven workforce.” Mr Kirubai.
Read also; NSE lists East African Portland Cement as Day’s Top Price Gainer.
