Displaying items by tag: Uganda
Bamburi Cement completes divestment of Hima Cement
13 March 2024Uganda: Kenya-based Bamburi Cement has completed its US$84m sale of its subsidiary Hima Cement to a consortium comprising Sarrai Group and Rwimi Holding. The transaction completed in early March 2024 following regulatory and shareholder approval, according to the Business Daily newspaper. Bamburi Cement’s intention to sell Hima Cement was first announced in November 2023. Holcim held a 70% share and Cementia Holding held a 30% share in Hima Cement. Both companies have sold their full stakes to the new owners.
Uganda: The government has granted a 21-year mining licence to Sunbird Resources to support a cement plant project near the border with Kenya. The licence will allow the local company, which is working with China-based West China Cement, to mine limestone, according to Reuters. The partners intend to build a 1Mt/yr integrated cement plant.
Uganda Revenue Authority takes action on cement smuggling from Kenya
26 December 2023Uganda: The Uganda Revenue Authority (URA) has augmented its operations on the country’s eastern border with Kenya to prevent the smuggling of cement. The Daily Monitor newspaper previously reported “cheap illegal cement” was being imported by both large and small-scale traders via multiple uncontrolled border points. Kenya and Uganda share land border over 800km in length
Ibrahim Bbosa, a spokesperson for the URA, said “While there is legal trade with significant amounts of Kenyan cement entering Uganda through official customs points, there has been a worrying increase in the smuggling of brands such as Simba and Bamburi.” He added that smugglers were often using bicycles and motorcycles to move cement across the border before consolidating the shipments by truck within the country for further distribution.
Bamburi Cement and Cementia Holding to sell Hima Cement for US$15m
08 December 2023Uganda: Holcim subsidiaries Bamburi Cement and Cementia Holding have negotiated a price of US$120m for Hima Cement with buyer Sarrai Group. Business Daily News has reported that the price is 14% higher than the company’s previous valuation. The parties said that the agreed price takes into consideration ‘multiple factors,’ including Hima Cement’s performance in 2022 and forecast performance for 2023.
Holcim to sell Hima Cement and Mbeya Cement
15 November 2023Tanzania/Uganda: Switzerland-based Holcim has signed agreements to sell Uganda-based Hima Cement and Tanzania-based Mbeya Cement. Local industrial conglomerate Sarrai Group will acquire Hima Cement for US$120m, while local oil importer Amsons Group will acquire Mbeya Cement for an undisclosed sum.
Holcim’s Asia, Middle East & Africa regional head Martin Kriegner said “These divestments advance our strategy to consolidate our leadership in core markets as the global leader in innovative and sustainable building solutions. With the Sarrai Group and Amsons Group, we are pleased to have found strategic and trusted partners who are best positioned to develop these businesses in the long term.”
President launches vertical roller mill at Tororo Cement
25 September 2023Uganda: President Yoweri Kaguta Museveni has officially commissioned a new vertical roller mill at Tororo Cement’s plant in Tororo. The German-built mill cost US$25m and can produce 150t/hr of cement. The operator claims it to be the ‘most sophisticated’ in East and Central Africa. It is in the process of installing an additional 300t/hr mill, to bring its overall grinding capacity to 5Mt/yr. It is also planning the construction of a 5000t/yr integrated plant in Moroto, to eliminate the company’s need for imported clinker, which it claims will be launched within the next five years.
Speaking at the event, Museveni congratulated Tororo Cement’s chair Hasmukh Kanji Patel for the company’s ‘enormous contribution to Uganda’ and called for Ugandans to support foreign-owned companies, as they support national development, pay local taxes and contribute to gross domestic product. He said "I'm very glad that Mr Patel came here, that we privatised a government factory and now he has expanded it. This is why we had to go against people like Idi Amin who were ignorant. Ugandans should stop saying ‘Indian factory.’ This this is not an ‘Indian factory,’ it is a Ugandan factory regardless of who has built it.”
Sunbird Quarry Moroto and West International Holding Cement break ground on US$1.2bn Moroto cement plant
12 September 2023Uganda: A joint venture of Sunbird Quarry Moroto and China-based West International Holding Cement has begun building its upcoming Moroto cement plant. New Vision News has reported that the plant will cost US$1.2bn and produce cement from locally sourced limestone. The Uganda government said that the plant will generate jobs and help to lower the local price of cement.
Bamburi Cement’s half-year profit hit by tax claim in Uganda
04 September 2023Kenya/Uganda: Bamburi Cement’s profit after tax has been adversely affected by a tax claim in the first half of 2023. The cement producer said that its profit after tax was reduced due to the “settlement of corporation tax matters in Uganda.” Its turnover grew by 11% year-on-year to US$153m from US$138m in the same period in 2022. However, its profit after for tax fell by 7% to US$604,000 from US$652,000. As well as operating plants in Kenya, the subsidiary of Switzerland-based Holcim runs Hima Cement in Uganda.
Reporting by the Business Daily newspaper has revealed that the Uganda Revenue Authority (URA) started a review in 2020 of Hima Cement’s transfer pricing compliance between 2014 and 2018. The URA then raised its corporation tax assessment for Hima Cement in December 2022. Bamburi Cement has also faced additional penalties and interest charges from the Kenya Revenue Authority.
Investigation after boy dies in cement quarry lagoon
25 April 2023Uganda: Hima Cement and local authorities are investigating the circumstances in which an eight-year-old boy allegedly drowned on 21 April 2023 in a quarry lagoon at a site formerly operated by Hima Cement. Poshele Bwambale Isingoma, a resident of Katoke village in Bugoye sub-county, was reportedly among other minors who had gone out to play. Isingoma had attempted to follow ducks that were swimming close to the side of the lagoon but slipped in and got into difficulty.
Hima Cement’s country CEO Jean-Michel Pons said the fatal incident occurred at a quarry previously operated by Hima Cement, saying “On behalf of Hima Cement, I convey my heartfelt condolences to the bereaved family for this unfortunate tragedy.” Pons added that the company’s management was ‘co-operating fully with the authorities in their investigation to establish the cause of the incident.’
Kenya: Bamburi Cement’s turnover rose by 3% year-on-year to US$168m in the first half of 2022 from US$164m in the same period of 2012. However, its profit before tax tumbled by 89% to US$1.03m from US$9.25m. The subsidiary of Switzerland-based Holcim attributed its rising turnover to mounting sales volumes and rising prices. However, it blamed its falling profit on “significant inflation of the fuel prices, logistics costs and imported clinker prices in both Kenya and Uganda.” It added that it expected the local market to improve after the Kenyan general election in August 2022 and growth in infrastructure spending in Uganda propped up by the oil industry.