Hima Cement Limited announced that it is embarking on a capacity expansion strategy that will start with the construction of a cement plant in Tororo, Eastern Uganda, in the first phase.
The US$40m investment in Nyakesi, Rubongi will lead to an additional c1 million metric tons of cement capacity for the building solutions company.
Speaking during a media briefing, Hima Cement Limited Country CEO, Daniel Pettersson said that the aim of the capacity expansion drive is to meet the increasing demand for cement and concrete not only within Uganda but the regional market as well.
“Hima Cement is committed to ensuring sufficient cement capacity to serve the national infrastructure and construction projects, individuals and the commercial sector.
As a result, we are embarking on several capacity building projects starting with the construction of a Grinding Station at the end of 2016; in addition we are in final stages of exploration for a limestone position in North East Uganda to support a future clinker position; lastly we are launching a RMX operation in Kigali next month, to be followed by further aggregates and RMX operations in Uganda and Rwanda in the near future,” Pettersson explained.
In 2010, Hima Cement invested US$120m in the Rwenzori Project, installing the state-of-the-art, environment-friendly cement production line at its Hima Plant that increased production capacity to 0.9 Mt per annum. On completion, the Tororo expansion will further increase Hima Cement’s capacity to c1.9 million Metric Tons per year.
East Africa is one of the fastest growing regions in the world with an average GDP growth of c7%; the construction sector is growing at a higher pace of over 10% per annum.
Cement demand in Uganda and in the region is projected to remain strong supported by the resurgence in infrastructure development and key Mega Projects. Uganda will become an oil producing country by 2020/2021, and this will boost economic growth overall and construction growth in particular.
“We are very positive about the long-term prospects of the cement industry in Uganda; and LafargeHolcim is keen to solidify its position in the region as the leading producer of building solutions providing its customers with innovative value adding propositions,” Pettersson added.