Kevian Kenya, the producer of Afia and Pick N’ Peel juice brands, has established a new Sh350 million recycling plant in Thika to manufacture industrial materials.
The new firm named Ramani Recyclers, a subsidiary of Kevian, was officially opened yesterday by Tetra Pak Group president and chief executive officer Adolfo Orive.
Kevian chairman Kimani Rugendo told journalists the new venture is part of the firm’s expansion plans in an area he said has been neglected by many investors and that inevitably plays a key role in waste management.
“Ramani Recyclers will be recycling waste Tetra Pak papers to make ceilings, doors, hospital beds, roofing materials, seedling bins, pallets for industrial use, furniture’s as well as dustbins,” said Mr Rugendo.
The billionaire businessman said the firm has already signed a collection partnership deal with several companies, including national carrier Kenya Airways, Brookside Dairy and Tetra Pak.
The new Thika plant has a daily production of 1,500 tonnes with the company saying it expects this to go up based on demand.
“We expect to produce more in coming months given the high number of Inquiries we are getting. Our core market for this project remains Kenya but we cannot rule out supplying to other markets if the demand dictates,” said Mr Rugendo.
The new plant is funded through a mix of debt and internal cash reserves and will have a new accompanying workforce of 200 people.
Mr Rugendo said the firm will distribute waste collection centers in Nairobi and its environs for sustainable raw materials.
“We will set up collections centres to make the value chain complete from farms to consumption, back to farm and putting the waste into the secondary use,” he said.
Kevian Kenya has been on an expansion drive in a bid to diversify its revenue streams instead of relying on its mainstay products such as juice.
The company recently ventured into the production of energy drinks, upping competition in the local market dominated by Australia-produced RedBull and America’s Monster Energy.