National Cement plans expansion into Uganda

National Cement, which currently operates a grinding plant in Kenya, plans to invest KES18.5bn (US$199m) in a new factory in Uganda, according to local news reports.

The new plant marks the company's first foray into Uganda, and its first venture outside Kenya. With a capacity of 1Mta, the new cement facility is expected to be completed by the end of next year, the report by Ventures Africa states.

In its home market of Kenya, National Cement operates a 0.35Mta grinding works in Athi River. In July 2014 it announced plans to increase capacity to 1.7Mta and also to build a 1.65Mta integrated plant at Kaijado, near Nairobi. IFC is apparently providing finance.

The Ugandan cement industry has responded to growing demand needs with new capacity. As well as the two long-established players, Tororo Cement and Hima Cement, Moroto Cement is apparently owned by Afghan investors, with a plant of 3000tpd clinker capacity, built by the Chinese. New cement plant projects announced include a works by the Kuwait-based DAO Group with capacity of 1.5Mta of cement and 1.2Mta of clinker, to be built in Badaka in the east with a budget of US$150m. DAO has also indicated an interest in a further production facility in Moroto.