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India’s Sanghi cement plans $105 million plant for Africa

Jan, 29 2010

(Mumbai, India)  --  India's Sanghi Cement is planning to build a plant in Kenya that will cost 8 billion shillings in collaboration with local firm Cemtech. The new cement plant will meet the demands of the south Sudan market.

Construction of the plant is due to start in February. The plant will have an initial annual capacity of 600,000 tonnes.

John Lonyangapuo, permanent secretary at Kenya's Industrialisation Ministry said, "We need to take advantage of the market in southern Sudan and we need the foreign exchange. Uganda is also quite near."

For the construction of the plant, the companies have already bought 650 acres in the remote West Pokot region in western Kenya that is underserved by the government. They plan to lease more land with lime deposits from the local authority and pay royalties.
"This type of investment will simply open northern Kenya in a very massive way because the government will now have to pay attention and build the Kitale-Kapenguria-Lodwar-Sudan road because this product has to go to Sudan," Lonyangapuo said.

The company would also install a 2 billion-shilling coal-fired energy plant to generate 60 megawatts of power. It will utilize 17-20 MW for the plant and plug the rest into the national grid once the firm has a power purchase agreement with the Kenya's electricity distributor.


By:  Rashmi Kalia  [aggregateRESEARCH.com]