Portland Cement reopens factory after Sh400m upgrade

The East African Portland Cement PLC (EAPCC) has resumed full production at its Athi River plant after completing a Sh400 million plant upgrade in a plan to increase production capacity over the next two years.

Chairman Richard Mbithi said the factory, which was temporarily closed for 25 days on March 13, has resumed full production with a capacity to produce one million tonnes of cement annually by 2026, up from 310.00 tonnes currently.

“With the completion of the factory renovation and the resulting improved production and efficiency, we are confident that the company will achieve its production and revenue targets. This will in turn translate into positive returns for the company’s shareholders in terms of dividends,” he said in a statement on Wednesday.

Mr Mbithi said crucial components used in cement production processes, such as bag filters and refractory bricks, had been replaced during the upgrade.

The EAPCC also renovated its grate cooling system, a plan that will see the cement manufacturer significantly increase its production targets once the exercise is completed.

“This achievement marks the revival of a key player in the cement industry and, more importantly, the potential for growth and innovation within the Kenyan manufacturing sector.

“At the heart of our efforts to revitalize the manufacturing sector lies a commitment to increasing competitiveness, efficiency and sustainability, paving the way for a better future,” said Rebecca Miano, Secretary of the Trade Cabinet .

The factory upgrade at the EAPCC was carried out by seven local contractors including Edter International Limited, Rokan Engineering Services Limited, Wabrian Enterprises Limited and Jasu Trading Company Limited. Others include Refrack (A) Limited, Danken Engineering Limited and Linkmax Contracting Company.

Portland’s revenue grew 22.8 percent to Sh1.84 billion in the period, and cost of sales increased at the same pace to Sh1.84 billion, leading to a 22.7 percent increase in gross loss to Sh319.1 million.