28 June 2010

Uganda: U.S.$108 Million Hima Cement Plant for October

Kampala — The $108m Hima cement plant in western Uganda will be complete and commissioned in October.

This is according to the General Manager Hima Cement David Njoroge. The construction works on the new Hima Cement Rwenzori plant which is expected to double the company's production capacity from 350,000 tons to 850,000 tons is nearing completion.

When completed, the plant, built at a cost of $ 108 million, will add new capacity which will go a long way in meeting local demand thus effectively moving Uganda from being a net importer of cement.

"Work at the new plant is near completion and the new kiln is fully up and running, capable of producing clinker, the raw material that produces cement. Later in October, we expect full production to commence," said Njoroge.

He added that apart from meeting local demand, the new plant will also serve the emerging markets of Southern Sudan, Rwanda, Burundi and Eastern DR Congo.

"With Hima Cement increased capacity and also other new investments coming into the sector, Uganda will no longer need to import cement because there will be enough capacity to meet local demand and also supply the emerging markets. We expect that this will save the country in excess of $1 million in foreign exchange annually," Njoroge said.

Apart from adding new capacity, the new plant will increase employment for technical staff by 100 people directly and indirectly further boosting the economy of Kasese and Hima town where the plants are located.

Njoroge said that the new plant will use state of the art technology to produce high quality products under friendly environmental conditions which observe global standards in emissions.

"The new plant comes with the latest technology in production and safety and also there are inbuilt mechanisms to ensure that emissions are reduced to the bare minimum" he said.

Hima Cement has also been substituting heavy fuel oil with coffee and rice husks for burning of kiln which has greatly reduced carbon emissions.

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