Bagamoyo. Cement makers should brace for cutthroat competition as an Indian cement manufacturer plans to set up a new factory in Bagamoyo, Coast Region.
Armed with a $150 million (about Sh320 billion at the prevailing exchange rate) investment, Lake Cement Limited – which is already manufacturing the product at its Kimbiji plant in Kigamboni District – says it has what it takes to do better in the market.
The company’s ‘Nyati Cement’ brand has been in the market for two years.
From its Kimbiji plant, the company is already manufacturing one million tonnes of cement per year which is sold countrywide and exported to Rwanda, Burundi and the Democratic Republic of Congo.
“Since we started business in this country two years ago, the Nyati brand has been gaining popularity with each passing day and we are hopeful that demand for the product will keep going up, hence the new project,” the Lake Cement Ltd vice president for sales and marketing, Mr Ipn Pathak said at the weekend during a function where the company donated 400 bags of cement to Bagamoyo district for construction of classrooms for secondary and primary schools.
The new plant – to be built at Chalinze-Tarawanda area in Bagamoyo - will have the capacity of producing 1.4 metric tonnes of cement per annum.
Construction of the plant will start mid 2017 and will take two years to complete.
He said the new plant will use the limestone which found within the area of the project.
The company is not fazed with an increase in the number of cement manufacturers in the country, thanks to a rising demand for the product, precipitated by a number of mega construction projects that are the government’s cards.
This is why, said Mr Pathak, plans are also underway to increase production at its Kimbiji plant.
The manufacturing company in the country also started production at its $500 million factory in Mtwara which has an installed capacity of three million tonnes a year.
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