Ibrahim Kasita
20 December 2007
Kampala — A CHINESE firm, Sinoma International Engineering Company, has won a contract worth euros 77m (sh188.6b) to expand the Hima Cement Factory in Kasese. The Shanghai Stock Exchange-listed firm, through its unit, China National Building Material Equipment Corporation, will design, build and install equipment in two years.
Hima Cement, a subsidiary of Bamburi Cement Factory in Kenya, is owned and operated by a South African building materials firm, Lafarge.
Lafarge has embarked on expanding the production capacity of Hima Cement to 830,000 tonnes from the current 350,000 to meet the ever increasing demand for cement in the region.
The demand has increased due to factors like construction of the 250MW Bujagali hydro-power project, reconstruction of southern Sudan, Rwanda and Burundi. A 50kg bag of cement costs sh20,000.
The rising cost of production due to expensive and inefficient power supply, high cost of fuel for the kiln and high distribution costs have also pushed up the price.
The shortage has led to importation of cement from Kenya and Tanzania.
Hima and Tororo Cement Factory are the only producers of cement in Uganda.
The factories have been forced to invest in diesel standby generators and also explore the use of alternative fuel sources like coffee husks to burn the kiln in order to sustain production.
However, the factories have to adhere to environmental standards and address community concerns over pollution and noise. In order to protect the environment, Hima has invested over sh390m in planting over 531,000 tress in rehabilitated quarries and the community.
The company targets planting another 40,000 tree seedlings. It has so far reduced carbon emissions of over 78,520 tonnes through the planting of trees and use of alternative fuels.
The company has invested over sh240m in programmes like provision of free voluntary counselling and testing for HIV/AIDS and anti-retroviral drugs for staff and the community.
It has spent over sh120m in scholarships to bright but needy students in Kasese and another sh325m to support infrastructural development in local schools.
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