Displaying items by tag: Kenya

Iran: Cement production rose by 14.4% year-on-year to 35.6Mt in the first half of the local calendar year that started in March 2020 from 31.1Mt in the same period in the previous year. The sector exported 5.8Mt of cement with a value of US$128m to 28 countries according to the Mehr News Agency. India, Afghanistan, Russia, Iraq, Qatar, Kenya, Kuwait, Sri Lanka, Pakistan, Armenia, Turkmenistan, Kazakhstan, Azerbaijan, Bangladesh, China and Oman were among the export destinations of cement.

Kenya: A union representing 150 of East Africa Portland Cement Company’s remaining 270 employees, who it made redundant on 1 September 2020, has rejected the company’s offer to take back the workers on a three-year contract with a pay cut of 50%. The rehiring was to be the third phase in the producer’s programme to cut down its 936-strong workforce, according to the Business Daily newspaper.

Acting managing director Stephen Nthei said, “We ran into teething issues between ourselves and the union. There were a few unionisable staff who did not sign, and that is what we are still discussing and agreeing.” He added, “Whatever we will discuss and agree between ourselves and the union will apply to everybody, even those who have signed. It should not be a discriminative procedure.”

Rwanda: Kenya-based National Cement has begun selling its Simba brand cement on the Rwandan market. The New Times newspaper has reported that the company is aiming to compete against importers from further afield with cement produced at its Nakuru cement plant in Salgaa, Nakuru County in Kenya, thereby alleviating supply chain bottlenecks.

National Cement reportedly selected the market due to the “pace of development and infrastructure establishment,” and is offering its cement at a promotional price.

Kenya: East Africa Portland Cement Company has defaulted on a long-term loan from KCB Bank. The bank has demanded immediate repayment of the full loan, according to the Business Day newspaper. The cement producer’s current liabilities grew by 70% year-on-year to US$126m in the financial year to June 2019. In a report made to parliament Auditor-General Nancy Gathungu said, “This movement was largely due to the transfer of long-term loans to current liabilities on account of default on existing loan covenants.”

Kenya: Nairobi Business Ventures has shared plans for the establishment of a 1.0Mt/yr-capacity integrated cement plant following its 84% acquisition by UAE-based Delta International Holdings. Arab Finance News has reported that the former footwear producer is in the process of selecting a location for its upcoming plant and securing a source of clinker imports for the plant’s preliminary grinding-only phase.

Delta International Holdings is the owner of real estate company Delta Holdings Kenya, Shreeji Chemicals Kenya and Shreeji Glass Uganda.

Iran: Data from the Islamic Republic of Iran Customs Administration (IRICA) shows that cement producers exported 5.85Mt of cement in the first five months of the local 2021 financial year, which began on 20 March 2020. The value of cement exports fell by 52% year-on-year to US$128m from US$266m, according to the Tehran Times newspaper. Iraq, Kuwait and Afghanistan were the top destination for the exports. Cement was also sent to India, Russia, Qatar, Kenya, Sri Lanka, Pakistan, Armenia, Turkmenistan, Kazakhstan, Azerbaijan, Bangladesh, China, and Oman.

In its 2020 financial year Iran exported a total of US$7.0bn-worth of building materials and produced 85Mt of cement against a domestic consumption of 65Mt.

Tanzania: Huaxin Cement has announced the completion of its acquisition of Kenya-based Athi River Mining (ARM) Cement’s Tanzanian subsidiary Maweni Limestone. Reuters has reported that Huaxin Cement will invest US$30m in completing upgrades to the company’s plants in addition to an investment of US$116m to settle Maweni Limestone’s debts.

Kenya: Bamburi Cement’s profit before tax grew by 17% year-on-year to US$6.9m in 2019 from US$5.8m in 2018. It attributed the result to cost cutting and an optimisation initiative under its ‘Building for Growth’ plan. It said that this was achieved in spite of a decline in the Kenyan cement market and lower selling prices.

“Despite market challenges, including the absence of sales to Rwanda through Hima Cement, the shelving of major infrastructural projects such as Phase 2B of the Standard Gauge Railway (SGR) project in Kenya, contraction of the Kenyan market and price erosion fuelled by aggressive competitive pressure, both Bamburi Cement and Hima Cement grew share while sustaining respective market leadership,” said Bamburi Cement’s Group Managing Director Seddiq Hassani. He added that Bamburi Cement and Hima Cement remained resilient despite ‘challenging’ economic conditions.

The subsidiary of LafargeHolcim reported an increase in finance costs due to debt related to a capacity expansion project commissioned by Hima Cement in 2018. An impairment of assets in Rwanda was caused by its Hima Cement subsidiary in Uganda being unable to ‘access’ the market in Rwanda. The closure of the border between Uganda and Rwanda in February 2019 also further negatively impacted growth.

In Kenya, overall sales were negatively affected by the shift of volumes previously exported to Uganda from Bamburi Cement, following the commissioning of Hima Cement capacity expansion project in 2018, further reducing despatches from Bamburi Cement. In Uganda, although overall sales were negatively impacted by the inability to access the Rwanda market, Hima Cement domestic volumes grew.

Kenya: East African Portland Cement Company (EAPCC) has recorded losses of US$16.2m in 2019, up by 0.6% from US$16.1m in 2018, in spite of sales growth over the period of 8.0% year-on-year to US$14.7 from US$13.6m. Reuters has reported that the company will not be paying its shareholders.

Tanzania: Manyara Cement has shared plans for a 0.2Mt/yr integrated cement plant in Hanang district, for which it has already acquired limestone and pumice extraction licences for sites around Mount Hanang. The plant will use a vertical shaft kiln.

The plant will sell cement on the northern Tanzanian and southern Kenyan markets.