American firm plans Sh1.3b engineering plant in kenya

NAIROBI, KENYA: International Green Structures (IGS), an American manufacturing, engineering and construction firm has announced its entry into the Kenyan market.

IGS will invest approximately Sh527 million in its first phase, with longer term plans to build second, third and fourth phases of a manufacturing facility worth Sh1.3 billion in Thika.

“We are targeting to provide building solutions at just under Sh9,000 per square metre by allowing construction companies and developers to culturally adapt the IGS structure for Kenyans in communities where they live,” said Mike McCarthy, Global IGS interim president and chief executive officer.

He added: “The investment climate in Kenya is welcoming and its position at the centre of East Africa makes it a logical location for our regional hub. There exists a shortage of affordable quality homes, schools and healthcare facilities in Kenya that our building solution can address.”

He said that in February 2015, IGS will commission their factory and manufacturing will begin by the end of March 2015 for the first phase.

Speaking during the launch on Tuesday, IGS Kenya President Julius Nyoike said the company has over the past two years been working hard to obtain technology approvals from the Government and received commitments for 3,400 housing units, which is equivalent to the first year production at their manufacturing facility.

“We are excited by this launch today as it signals a first step in reaching an objective that is a personal passion of mine - employing and training young Kenyans,” said Nyoike.

He added: “At IGS, we aim to employ about 400 people, especially youths, in the first year of operation whom we will train on how to use the technology.”

He also said that IGS aims to certify about 100 contractors after training them to do their part in helping the Government’s devolution programme and adding to the skills in the construction sector at national level.

Target

Lands, Housing and Urban Development Cabinet Secretary Charity Ngilu said the ministry is undertaking various housing programmes with a target of constructing 300,000 housing units by the year 2017.

“Currently, the ministry has put in place a framework for the construction of 10,000 housing units for the civil servants in Shauri Moyo, Park Road and Starehe in Nairobi County which will commence by December 2014, in addition to 25,000 housing units for the National Police and Kenya Prison Service in all counties also to begin December,” said Ngilu.

Ngilu said that on slum upgrading, the ministry has completed construction of 624 houses in Soweto, Kibera and that it is also upgrading other slums in major towns, including improvement of existing housing, provision of sewerage services, water, drainage and installation of high mast flood lights to improve security.

“I wish to comment IGS for showing confidence in Kenya and its people by making this significant investment. This investment will create jobs and training for Kenyan youths. The IGS business model will boost the incomes of farmers throughout the country,” she said.

“We trust that your products shall meet building standards and contribute towards delivery of mass housing at affordable prices to bridge the huge housing deficit,” she added.

The IGS flexible manufacturing process can create a variety of building designs from residential homes to schools and medical facilities as well as commercial structures.

IGS, expects to provide a second income to rice and wheat farmers since their durable panels are made from rice and wheat straws.

The straws are recycled into compressed agricultural fibre panels.

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IGS Mike McCarthy