Hima Cement Limited is embarking on a capacity expansion strategy that will start with the construction of a grinding station in Tororo, Eastern Uganda, the cement maker has said. The Tororo investment worth US $40 million (UShs 140 billion) is located in Nyakesi, Rubongi, Tororo district, is expected to raise Hima Cement’s production by an additional one million metric tons.
This will be the first investment that La Farge (Hima cement parent company) is making outside the Rwenzori region in western Uganda. Hima cement already runs a cement production facility in Hima, in Kasese district. In 2010, they invested $120 million (Ushs 420 billion) on the Hima plant, installing a state-of-the-art, environment-friendly cement production line and increasing production capacity to 0.9 metric tons per annum.
Hima cement said when the Tororo expansion is complete; its total capacity will rise by a further 1.9 million metric tons per year.
Daniel Pettersson, Hima Cement Limited Country CEO, said the aim of the capacity expansion drive is to meet the increasing demand for cement and concrete in Uganda and the East African regional market.
“Hima Cement is committed to ensuring sufficient cement capacity to serve the national infrastructure and construction projects, individuals and the commercial sector. As a result, we are embarking on several capacity building projects starting with (Tororo)… in addition we are in final stages of exploration for a limestone position in North East Uganda to support a future clinker position….and we are launching a RMX operation in Kigali (January 2017), to be followed by further aggregates and RMX operations in Uganda and Rwanda in the near future,” Pettersson said.
Cement demand in Uganda and in the region is projected to remain strong supported by the resurgence in infrastructure development and key mega projects. It is also expected that when Uganda’s oil starts flowing, economic growth overall and construction growth in particular will be boosted.
“We are very positive about the long-term prospects of the cement industry in Uganda; and Lafarge Holcim is keen to solidify its position in the region as the leading producer of building solutions providing its customers with innovative value adding propositions,” Pettersson added