Investor puts up Sh8.6bn cans plant

What you need to know:

Construction of the factory, with capacity to produce 2.4 billion cans annually, has already begun and is expected be completed in a year.

Nigeria-based GZ Industries is putting up a Sh8.6 billion aluminium cans factory in Sultan Hamud along Mombasa Road.

Construction of the factory, with capacity to produce 2.4 billion cans annually, has already begun and is expected be completed in a year.

GZ Industries said the investment was informed by demand for aluminium cans by beverage makers as opposed to glass bottles, especially for the export market.

“As the country is now viewing more vigorous export growth its position as a leading producer is set to benefit from access to lower cost, domestically produced aluminium cans,” said GZ Industries in a statement.

Save on losses

Coastal Bottlers, one of Coca-Cola’s franchises, opened a Sh450 million canning plant in April 2012 with capacity to produce 30,000 canned sodas per hour.

East African Breweries Ltd has said it will package its products in cans to save on losses incurred due to transportation of empty bottles and breakages.

“The Sultan Hamud-based plant will also generate exports of its own. It will principally cater for the Kenyan market but also for growing demand from regional markets including Uganda, Tanzania, Ethiopia, Rwanda and Burundi,” said the firm.

GZ Industries said that Coca-Cola and Diageo, EABL’s parent company, will be some of its customers.

“They are the ones who encouraged us to come,” said GZ Industries business development analyst Milka Omukuba.

Firms in the past have imported canned beer from as far as Mauritius.