Portland Cement reopens factory after Sh400m upgrade

Portland Cement staff at work. 

Photo credit: File | Nation Media Group

What you need to know:

  • Critical components used in cement production processes such as bag filters and refractory bricks were replaced during the upgrade.

The East African Portland Cement PLC (EAPCC) has resumed full production at its Athi River-based factory after completing a Sh400 million plant upgrade in a plan set to increase its production capacity in the next two years.

Board chairperson Richard Mbithi said the plant, which was temporarily closed on March 13 for 25 days, has resumed full production with a capacity to produce one million metric tonnes of cement annually by 2026, up from 310,00 metric tonnes presently.

“With the finalisation of the plant refurbishment and the 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 terms of dividends,” he said in a statement Wednesday.

Mr Mbithi said critical components used in cement production processes such as bag filters and refractory bricks were replaced during the upgrade.

The EAPCC also refurbished its grate cooler system, a plan that will significantly see the cement manufacturer increase its production targets once the exercise is complete.

“This achievement signals the resurgence of a key player in the cement industry and, more importantly, the potential for growth and innovation within Kenya’s manufacturing sector.

“At the heart of our efforts to revitalise the manufacturing sector lies a commitment to enhancing competitiveness, efficiency, and sustainability, paving the way for a brighter future,” said Trade Cabinet secretary Rebecca Miano in a statement.

The factory upgrade at the EAPCC was undertaken by seven local contractors, including Edter International Limited, Rokan Engineering Services Limited, Wabrian Enterprises Limited, and Jasu Trading Company Limited. Others are Refrack (A) Limited, Danken Engineering Limited, and Linkmax Contracting Company.

Portland’s revenue grew 22.8 percent to Sh1.84 billion in the period, and the cost of sales grew by the same pace to Sh 1.84 billion, leading to a 22.7 percent rise in gross loss to Sh319.1 million.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.