Companies

Savannah Cement plans Sh18bn plant upgrade

Athi River-based cement maker, Savannah, will spend Sh18 billion ($200million) next year to expand its milling plant and increase its production capacity.

This will be its second plant. The project will be funded through internal cash reserves and is expected to start early next year.

The new grinding plant will be based in Kitengela town where its current manufacturing factory stands, with management saying the investment aims to help to meet growing demand for its products in the market.

“Once the two plants are installed, Savannah Cement will be taking pole position as a truly integrated and eco-friendly cement manufacturer,” said Savannah Cement managing director Ronald Ndegwa. “We shall also be expanding our product range to meet our customers’ demands.”

Mr Ndegwa said the installation of the second milling plant and the clinker production factory is part of the firm’s strategy to operate a fully-integrated cement manufacturing business.

Two months back, Savannah Cement announced that it had secured deals with contractors to supply them with bulk of cement in a growth strategy targeting increased sales.

READ: Savannah signs cement deals with mall contractors

The contractors are involved in the building of the Sh22.3 billion Garden City Mall, Centum’s Two Rivers Development, and the upcoming Sh1 billion Madiba Mall in Nyeri and a shopping arcade in Kakamega.

The Savannah managing director had earlier told the Business Daily that the company has also won contracts to supply cement for government projects including construction of Terminal 4 at the Jomo Kenyatta International Airport (JKIA) in Nairobi, the ongoing building of the Sh55.6 billion JKIA greenfield terminal and the Sh4.5 billion Ruiru sewerage plant.

Savannah began operations in July 2012. The company is said to have a cement grinding factory with a capacity of 1.5 million tonnes a year.

Locally, Bamburi Cement is Kenya’s largest cement maker followed by East African Portland Cement and ARM Cement according to a cement market report by Standard Investment Bank dated October 2013.