National Cement announced plans to open a new 1.65Mta cement works in the outskirts of Nairobi, Kenya.
The company said it received an undisclosed loan from KCB Group, raw materials on credit and a cash injection from its parent company Devki Group of Companies to finance the new KES11.9bn.
The new capacity is expected to intensify to battle for control of the regional cement market. The entry of National Cement and Mombasa Cement increased competition with the latter rapidly claiming a 20% market share via its pricing strategy.
“The new plant will significantly assist us achieve our goal of securing a much higher market share,” said Mr Narendra Raval, the managing director of Devki Group of Companies.
However, existing producers are not expected to rest on their laurels. Bamburi Cement (2.3Mta capacity), East Africa Portland Cement Company (1.4Mta) and Athi River Mining (>1Mta) are all considering expansion of their facilities to defend their market shares.
