Sri Lanka’s electrical cables maker reveals Kenya factory plansThursday September 24 2015
A Sri Lankan company has revealed plans to set up a cable manufacturing factory in Kenya targeting East Africa’s power generation projects.
Sierra Cables, a company listed on the Colombo Stock Exchange, made the decision after it completed a study on the feasibility of setting up a cable manufacturing plant in Nairobi.
Its entry could raise competition for the Nairobi Securities Exchange-listed East African Cables.
The Colombo-based firm is eying East Africa’s pipeline of electricity generation and transmission projects and the booming housing industry which has created a ready market for its industrial wire and cables.
“The feasibility study has indicated favourable financial outcomes and a formal project report has been approved by the board of directors for implementation in the forthcoming months,” Sierra Cables said in a filing to the Colombo bourse dated September 21, 2015 and seen by the Business Daily.
Sierra Cable’s proposed Nairobi plant will be a joint venture with a Kenyan strategic partner, the company disclosed in its latest annual report.
The company was yet to answer our queries on the timelines and cost of the project as well as the identity of the strategic partner in the Kenyan project by the time of going to press.
The company makes cables for use in transmission of electricity and domestic electrical wiring.
Sierra also manufactures telecommunications cables, meaning that it is keen to cash in on Kenya’s growing uptake of high-speed Internet characterised by increased rollout of fibre cable by telcos and internet service providers.