Displaying items by tag: Kenya
EAPCC reports US$9.96m loss for 2011-2012
31 October 2012Kenya: East African Portland Cement (EAPCC) has reported a loss of US$9.96m for the year ending 30 June 2012, compared to a loss of US$1.40m in 2011. EAPCC saw its revenue drop by 15% to US$101m in the same period. The company's takings were affected by slow sales, a major plant breakdown and labour unrest.
The company said that production was hurt by labour unrest that caused operations to be suspended in January 2012 and a major breakdown of one of its kilns that hit production. Other factors included a weakening Kenyan Shilling, and rising costs for power and raw materials. In addition slow sales affected revenue.
Kenya: ARM Cement (formerly known as Athi River Mining Ltd) has posted a net profit of US$9.71m for the first nine months of 2012. This marks a 328% growth in profit compared to same period in 2011 when it made US$2.26m. ARM's turnover has climbed by 29% to US$90.7m, driven primarily by higher sales of its Rhino Cement brand.
ARM Cement Ltd received US$50m from the African Finance Corporation (AFC) to partly fund a plant in Tanzania as well as expansion efforts into the region. Rhino Cement, which is ARM's flagship brand, was launched in Tanzania in October 2012.
"(The Tanzanian launch) will contribute to the group revenues in the fourth quarter of 2012," said the company in a statement. The statement further explained that construction at a 1.2Mt/yr clinker plant in Tanga is progressing to schedule. ARMs' overall outlook remains optimistic for the immediate future with expectations of growth in demand for Rhino Cement and other products.
Meanwhile, Standard Investment Bank (SIB) has announced that, since 2007, the cement industry players in east Africa have invested over US$500m into capacity expansion projects in the region. This investment has seen cement grinding capacity in the region increase by 65.8% over the same period to 10.4Mt/yr, a figure that SIB expects to further increase by 41.8% to 14.76Mt/yr by 2015.
Between 2001 and 2010 total cement traded across the East African Community jumped from 0.45Mt/yr to 2.18Mt/yr. Kenya remains the region's largest net exporter with 0.61Mt in 2010, up from 0.23Mt in 2002. Rwanda is the largest net importer with 0.21Mt in 2010.
EAPCC appoints new production and personnel managers
26 September 2012Kenya: The East African Portland Cement Company (EAPCC) has appointed two managers to head up its production and human resources departments. Charles Charo has will become the new head of production operations and John Ole Kimanjoi will become the head of human resources and administration.
Charo holds 25 years of experience in cement manufacturing and has previously worked for Bamburi Cement and Athi River Mining. Kimanjoi holds 25 years experience in human resources, specialising in labour relations. He has worked for KPTC, Telkom Kenya, Mumias Sugar and NSSF. Other appointments include a new Production Manager Joseph Kombo, who was promoted from process manager and James Mutisya, who becomes the new Maintenance and Projects Manager.
EAPCC managing director Kephar Tande said that the changes have been made to enable the company to execute a new strategy and align functions to grow the business.
East African producers issue warning about imports
05 September 2012Kenya: The East Africa Cement Producers Association (EACPA) has warned that cement imports are not being subjected to the same technical standards and regulations as local cement. At a meeting in Nairobi, local cement producers stated that they want imports halted as the region has surplus production.
"Cement is a very sensitive commodity yet the quality issues on imports are not being addressed at such a time when the number of collapsing buildings is rising," said Kephar Tande, the managing director of the East African Portland Cement Company and chairman of EACPA.
Kenyan manufacturers are discussing the issue with the Kenya Bureau of Standards to tighten the requirements for standards and packaging. These requirements would include expiry date markings on cement bags, and information on storage and handling. The EACPA also alleged that foreign cement manufacturers are using local agents who are 'unqualified' and should now be regulated.
The East African region has a demand for cement of 5Mt/yr and it is currently producing 7Mt/yr. Plants are currently running at 78% of capacity. The EACPA added that the local industry's net profit margin is expected to dip to below 10% in 2012 compared to 15% in 2011.
Lafarge Bamburi profit down on squeezed margins
08 August 2012Kenya: Lafarge Bamburi Group has posted a 13% drop in its pre-tax profit to stand at US$43.9m for the six months ending 30 June 2012. The group's operating profit was down by 9% to US$42.7m. Both were negatively impacted by continued volatility of global fuel prices, resulting in higher raw material, transport and power costs.
This was further aggravated by the removal of a government power subsidy in Uganda that led to a 70% increase in power prices, which affected the company's Ugandan subsidiary Hima Cement.
Lafarge Bamburi's turnover rose by 17% percent to US$228m, while cash generated from operations during the period under review amounted to US$60.6m, 33% higher than what was generated in 2011.
"The regional cement market will continue to be vibrant," said the company in a statement. "The focus will be on retaining the upward trend of revenue growth. The group will continue to capitalise on progress made in its cost control measures to cushion the top line."
EAPCC fires senior manager
06 June 2012Kenya: The head of sales and marketing at the East African Portland Cement Company (EAPCC), Francis Mwalili, has been fired. The EAPCC board accused him of inciting staff unrest and took advantage of his probationary contract to remove him. In addition EAPCC claims it had also received a letter in May 2011 from Mwalili's former employer, the Kenya Meat Commission, accusing him of extorting money from clients and potential customers.
Mwalili has denied the allegations accusing the EAPCC board of having a hidden agenda to sack him. He said his employment was on a five-year contract and he was not on any probation as alluded to in the termination letter. He is now calling on the relevant authorities to step in to avoid further disputes within the company, which have caused massive disruption since the start of 2012.
Athi River profit grows 17% in Q1
16 May 2012Kenya: Athi River Mining has posted a 17% rise in first quarter pretax profit to US$4.7m, helped by higher production and growing demand for cement for infrastructure projects.
Kenya's second-largest cement firm, the turnover of which jumped by 61% to US$32m for the quarter ending 31 March 2012, said it would recommend a share split of five for every one ordinary share and a name change to 'ARM Cement Limited' at an annual general meeting scheduled for 24 July 2012. The company also said in March 2012 that it planned to raise US$50m, equivalent to 13.6% of its total equity, through a six-year convertible loan from Africa Finance Corp to finance expansion of its clinker and cement plants later in 2012.
Court over-rules Kibaki and reinstates EAPCC boss
25 April 2012Kenya: Mark ole Karbolo has been reinstated as the Chairman of East African Portland Cement Company (EAPCC), two months after President Mwai Kibaki appointed Isaac ole Mapenay to replace him.
High Court Judge Mohammed Warsame ruled that the government did not follow procedure in ejecting Karbolo from EAPCC. Karbolo moved to court immediately when he was fired to challenge his sacking by the president in an announcement published on 10 February 2012.
Karbolo argued before Justice Warsame that there had been concerted effort by the government to remove him from the board without following the law. Karbolo had been dogged by allegations of mismanagement and malpractice that saw him and the entire board suspended by acting Industrialisation Minister Amason Kingi.
The directors had challenged their suspension and were reinstated by the courts. The High Court decision now sets the stage for yet another round of court room battles pitting the Judiciary against the Executive.
Maasai seek to calm cement fears
07 March 2012Kenya: The Maasai Council of Elders (MCE) has assured cement manufacturing companies in Athi River of their willingness to allow them get raw materials from Kajiado county, following disputes over land. MCE spokesman, William Kirrinkai, gave the assurance after a meeting of stakeholders and representatives of the five cement manufacturers at Nkurrunka area in Kitengela.
Kirrinkai is also the treasurer of the recently-formed special council mediator group to negotiate the re-opening of all the mines that had been closed over alleged misunderstandings between the locals and the companies. He was quick to point out that earlier demands made by the MCE still stand.
The elders had given an ultimatum to the companies to look again at their social corporate responsibilities and consider some of the requirements of the Maasai community. Some of the demands were the implementation of employment quota for Maasai young graduates, two directorial positions in all of the companies, building of health centres in all the mining areas, building of tarmac roads in areas leading to the mines and helping members of the community pay school fees for their children.
During a meeting on the matter at Kitengela on 27 February 2012, the East African Portland Cement Company (EAPCC) and Athi River Mining Cement (ARMC) representatives requested to be given time to consider the demands. Kirrinkai, who attended the meeting, agreed with the then EAPCC chairman, Mark Karbolo, and ARMC's representative Peter Danga to meet again on 10 March 2012 to review the matter.
Kirrinkai separately addressed more than 2000 members of the local Maasais and other communities in Kajiado County, saying that local and non-locals living in the region have a right to all the available resources.
Bamburi profit increases due to new subsidiary and stability
29 February 2012Kenya: Profits at Bamburi Cement rose by 12% in 2011 backed by stronger revenues from the domestic market and its newly-expanded Ugandan subsidiary. The company earned a pre-tax profit of US$102m in 2011 compared to US$91m in 2010. The group's turnover increased by 28% to US$433m in 2011 from US$338m in 2010. Given pricing pressure in Kenya, Bamburi's main market, the better than expected revenue growth was mainly supported by increased volume sales from the company's Ugandan subsidiary, which was expanded in the last quarter of 2010.
"2011 was characterised by stable domestic prices and better export prices, due to the appreciation of the US dollar,"said Hussein Mansi, Bamburi's managing director. However, the company, like many others worldwide, suffered from a jump in power costs. For this reason, the company is still cautious regarding the local and global macroeconomic environment for 2012. "The uncertain political environment in Kenya continues to make visibility difficult," said Mansi.