Cement firm eyes plant upgrade to meet demand

Savannah Cement (Photo Courtesy)

Savannah Cement plans to spend Sh1 billion to double cement production at its Athi River plant.

The project is expected to increase the cement manufacturer’s annual capacity to 2.4 million tonnes, up from the current 1.2 million tonnes. The firm expects to start construction in the course of this year and complete the project by mid-2018.

“The project has been estimated to cost Sh1 billion,” said the firm’s CEO Ronald Ndegwa in an Environmental Impact Assessment report filed with the National Environment Management Authority (NEMA). “The objective of the proposed capacity increase project for Savannah Cement’s plant is to increase the cement grinding capacity on the existing site in Athi River, Machakos County.”

The firm expects the larger capacity to meet growing demand by infrastructure projects as well as the emergent real estate industry. The Government has earmarked infrastructure as among the priority areas in 2017 with plans to spend on mega projects including start implementation of some that are still in the planning stages. Among the major infrastructure projects that have been a major consumer of local cement in the recent past include the Outer Ring Road and the Standard Gauge Railway.