M a r k e t N e w s

IFC acquires stake, injects Sh6b in Kenyan cement firm

Posted on : Saturday , 27th September 2014

The cash will enable National Cement Company expand its operations and create over 6,000 jobs

he International Finance Corporation (IFC), a private sector lending arm of the World Bank, will inject  Sh5.9 billion ($70m) into National Cement Company Limited, a member of the Devki Group Of Companies  formed in 2008.

The cash injection will enable the Athi River-based firm expand operations, increase local supply of cement and promote infrastructure development in Africa.

This is part of the Sh6.4 billion deal that was agreed upon in February between IFC and the cement firm.

Under the arrangement, IFC will provide $55 million in debt. In addition, IFC and the IFC African, Latin American and Caribbean Fund will inject $15 million in equity into National Cement and will have a seat on the company’s board.

IFC investment will enable the firm to multiply its production five-fold to 1.7 million metric tonnes per year. National Cement plans to expand its cement factory in Nairobi, creating over 6,000 jobs. Small businesses that transport the firm’s raw materials and provide general services will also benefit economically.

Devki Group Chairman Narendra Raval said by partnering with IFC, National Cement looks forward to combining its experience in Kenya’s building materials sector with IFC’s international expertise in infrastructure and environment management.

As National Cement expands, we aim to contribute actively to improving infrastructure and housing in Kenya,” he said.

Oumar Seydi, IFC director for Eastern and Southern Africa said Kenya often imports cement at high costs, adding, “We would like to send a strong signal of IFC’s confidence in a Kenyan company making a difference in the local economy.

National Cement Company Limited was formed to construct and operate a a cement plant in the heart of Athi River, about 50 km from Nairobi City.

The New 2,000,000 tonnes per year dry cement plant incorporates modern control and cutting edge technologies, which include a Vertical Roller Mill, a Preheater, a Calciner, a Clinker Cooler and Ball Mill.

This equity injection will see National Cement undergo a two-phase expansion expected to be completed by 2016. The company has acquired 2,200 acres/890 ha of land between Merrueshi and Mbirikani (Kajiado County) with limestone and clay deposits on which it will build and operate the clinker production facility.
The area is estimated to have up to 60 million tonnes of limestone reserves, sufficient reserves for up to 45 years of production. The clinker plant will have a capacity of 1.1 metric tonnes per year when completed in 2016.

Source : in2eastafrica.net
Featured Companies
  • dubaiexporters.com

Complete List  

Advertisers in previous issue:

  • SIDC Ceramic Plant is a state of the art blend of European technology and expertise.
  • Nirmal Fabricators Limited “Nirmal” is among the most renowned fabrication service provider in Kenya
  • We are primarily involved in the following product range of material processing equipment: Crushing Equipment, Screening Equipment and Washing Equipment.
  • TechnoConstruct is poised to transform the construction sector in Kenya and Africa.
  • Indian Hardware & Sanitary News is a single trade monthly magazine which creates, manages and delivers the information that trading partners need to meet and do business.
  • South Africa
  • One of the largest rent equipments companies
  • Ceramic World Web is the first and only electronic magazine devoted to the entire ceramic industry production chain, from manufacturing through to distribution of floor and wall coverings and bathroom furnishing.
  •   Canalfil is a leading manufacturer of stainless steel conduits ITES is a leading company in Italy in the production and sale of cable systems and metal suspension.
  • At Tridonic our daily quest is to create perfect light. 2,000 experts worldwide are working tirelessly to control, regulate and operate lighting in exactly the way you want it
  • ACTION CONSTRUCTION EQUIPMENT LIMITED (ACE) is India’s leading material handling and construction equipment manufacturing company with over 54% market share in mobile cranes segment.
  • Specialising in different product lines for road construction industry.
  • Japanese wood market magazine
  • Manufacture of machinery, molds and Facilities for Precast Concrete, starting first by facilities for prestressing Before tensioning steel cables
  • One of the top leading manufacturers of the accessories for aluminium door& window in China
  • Information hub for global wood industry.
  • The 6th Qingdao International Construction and Decoration Materials Exhibition will focus on providing opportunities for manufacturers to enter the Chinese market .
  • India
  • Equipment & Tires that construct Africa
  • Roadside Products Pty Ltd is the manufacturer and distributor of Dura-Post Guide and Marker Post Systems.
  • Doosan Infracore, Korea’s top machinery manufacturer and a global leader in Infrastructure Support Business
  • PAN MIXERS SOUTH AFRICA is Africa
  • We are a green restroom specialist that pioneers intelligent, water-conservation sensor technology.
  • Athi Steel
  • Saudi Marble & Granite Factory Co. Ltd. (SMG), a pioneer in Saudi Arabia’s mining and construction industries.
Afrotrade International Marketing, Tel: +971-50-6285684
© 1998-2019 Afrotrade