Money Markets
ARM’s expansion bid to intensify war for cement market
ARM managing director Pradeep Paunrana at a past function. The Kenyan plants will produce 3,000 metric tonnes of cement per day, while the Tanzania one will produce 4,500 tonnes. Photo/LIZ MUTHONI
Posted Tuesday, October 27 2009 at 00:00
“Our investment in Tanzania is driven by the expected exponential growth of cement use to be driven by infrastructural projects in roads, power and mining”, said Mr Paurana.
Currently, Tanga Cement controls less than 10 per cent of the Tanzanian market with the bulk being imported from Egypt, South Africa and Zambia.
ARM’s expansion will see its market share grow to 19 per cent from the current 13 per cent.
Bamburi Cement controls 58 per cent of the local cement market and Portland has a 30 per cent stake.
According to East African Cement Producers Association (EACPA), the industry lobby group, demand for cement locally has grown steadily from one million tonnes in 1994 to 2.7 million tonnes to date and is expected to hit four million tonnes in three years.
Even as ARM carries out its expansion plans, the other players are also engaged in either plant expansion or product diversification and value addition to grow their bottom lines.
East African Portland Cement is adding a new milling, plant besides plans to engage in value addition through preparation of ready made concrete mix used for construction.
Similarly, Bamburi Cement is adding a new grinding plant.
Beside cement production, ARM is also involved in fertiliser manufacturing and sodium silicate used in making of detergents.
Other products include industrial minerals and lime.
RSS