Kenya’s ARM Cement defines further expansion plans

ARM Cement Ltd says it is investing in the construction of new plants and upgrading existing units across east Africa as competition in the region increases. The plan is to see several upgrade projects completed over the next two years, including a new grinding facility in Tanzania, boost production in Rwanda as well as constructing a greenfield plant in Kenya.

The company, which has works in Kaloleni and Athi River in Kenya, as well as in Dar es Salaam and Tanga in Tanzania, will complete its new 2500tpd Tanga grinding plant next year.

Pradeep Paunrana, ARM Cement’s chief executive, said that the Tanga project will be followed by the expansion of the company’s recently-acquired Kigali Cement. The company had held a 35 per cent stake in the only privately-owned cement company in Rwanda since 2011 but earlier this year bought out the remaining 65 per cent stake. The 0.1Mta Rwanda cement grinding plant will now have its capacity doubled to 0.2Mta.

“Our next major growth will be in Kenya, a growing market that is still heavily reliant on imported clinker,” said Mr Paunrana.

The Nairobi Securities Exchange (NSE) listed firm plans to build a 2.5Mta integrated clinker and cement plant in Kenya’s Kitui County.