Companies

Portland Cement seeks additional Sh2bn bailout

The East African Portland Cement Company (EAPCC) #ticker:EAPCC has renewed its push for an additional Sh2 billion to repair its kiln, warning that further delays will bring the company to an immediate halt.

The kiln with capacity to produce 3,000 metric tonnes of clinker daily has been experiencing frequent breakdowns, with the latest one this year lasting 78 days.

Since its establishment in 1996, the kiln has not been refurbished, which has seen its capacity dwindle by 50 per cent. “The company urgently requires Sh2 billion to undertake a major shutdown that will necessitate the kiln to be formally stopped and refurbished for at least one to two months,” EAPCC managing director Simon ole Nkeri told Parliament yesterday.

The struggling cement manufacturer said once funding is availed, it will during the lengthy shutdown install a crater cooler retrofit that will help cut energy costs.

The firm, which is struggling under debt, is spending an average of Sh120 million on electricity every month. It is expected to save power costs by at least 30 per cent.

Owing to the financial challenges, the company recently sent home 520 employees in a move it says is aimed at staying afloat.

But in a petition to Parliament, the ex-workers, accused the company of unprocedural termination of contracts.

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