Displaying items by tag: Uganda

Uganda: The local government has allocated more than 228 hectares of land for the construction of a new cement plant. The land was offered to the Uganda Development Cooperation-UDC and its partners TSAVO Engineers and Savanna Mines in November 2018, according to the Ugandan Independent newspaper. However, the local community has expressed concerns about the project.

India: Oman’s Raysut Cement plans to invest around US$700m in India by 2022. Joey Ghose, the chief executive officer (CEO) of the company, said that about US$200m has been set aside to buy majority stakes in two local producers in early 2019, according to the Hindu newspaper. Raysut Cement wants to increase its total cement production capacity to 20Mt/yr. The investment will be funded by internal revenue and loans.

The cement producer is holding talks with companies in Chhattisgarh and the coastal region of Gujarat respectively. Each company has a production capacity of around 1.2Mt/yr. Raysut Cement also intends to invest up to US$500m in these companies following their acquisition by 2022, bringing their capacity up to 5Mt/yr.

Outside of India, Raysut Cement also says it is interested in buying a 70% stake in Kenya’s ARM Cement for US$100m. It is also in discussions to acquire buy cement producers in Uganda and Djibouti. It currently has projects in development in Somaliland and Somalia. The company also holds a majority stake in Pioneer Cement Industries Georgia.

Uganda: President Yoweri Museveni has commissioned the Simba Cement plant in Mukuju Sub-County in Tororo District in Eastern Uganda.

The factory, which currently employs about 400 workers, was built in two and half years by Mepani Technical Services, at an estimated cost of US$55m. It is the second cement plant in Tororo District.

President Museveni, who on arrival at the factory made an inspection tour of the facility, urged Ugandans to be enterprising and disciplined. He added that, with the abundant natural resources with which Uganda is endowed, there is tremendous potential for development.

Musaveni commended the pledge by the factory to employ local youths and advised the company to employ at least 30% youth workers. He also praised Tororo District for the peaceful approach in handling their district’s matters.

The Managing Director of Simba Cement factory, Guru Narendra Raval, said that the reduction in the price of cement due to the new capacity the plant had brought was in line with President Museveni's dream of having Ugandans living in cemented houses. He said, “The President asked me to build a cement factory and now I have built it. I am not here to make profits but to make Ugandan lives better.”

Uganda: Simba Cement has opened a new 1Mt/yr grinding plant in Tororo. The unit had an investment of US$45m, according to the Daily Monitor newspaper. The plant was built by Mepani Technical Services and construction started in early 2016. Simba Cement Uganda is a subsidiary of National Cement Kenya, which is part of Devki Group.

Uganda: The Ministry of Trade, Industry and Cooperatives has backed down from allowing bulk imports of cement into the country following price stabilisation. The market faced soaring prices in April 2018, according to the Daily Monitor newspaper. The ministry said that prices have returned to the level they were before the crisis. In April 2018 the government asked cement producers to resolve a local cement shortage. Local companies Hima Cement and Tororo Cement blamed the problem on reduced electricity supplies to their plants.

Uganda: Local cement producers are facing challenges meeting the specification required for cement being used by the Standard Gauge Railway (SGR) project. Project coordinator Kasingye Kyamugambi said at a procurement conference in Kampala that the project was facing issues with cement, reinforcement steel and sand, according to the Daily Monitor newspaper. Hima Cement is producing one specific product for the project following discussions with the SGR. However, the railway needs eight different types of cement.

Kyamugambi has called for legal cover for the infrastructure project to bypass local product sourcing laws. He has asked that new legislation be introduced to cover projects with a lifecycle of over a century.

The SGR is being built by China’s China Harbour Engineering Company. The project is intended to link up to Kenya’s railway project at Tororo with proposed links to Rwanda and South Sudan. The Democratic Republic of Congo has also expressed interested in the line.

Switzerland/Uganda: LafargeHolcim has been criticised by two Swiss non-governmental groups (NGO) over alleged child labour issues in Uganda. The Protestant Church group Bread For All the Catholic Lenten Fund have accused the multinational of delaying compensation to alleged child labour victims, according to the Swiss Broadcasting Corporation. LafargeHolcim has denied the accusations. The NGOs have published video statements by children testifying that they previously worked for suppliers to Hima Cement, a local subsidiary of LafargeHolcim.

A report published in 2016 claimed that around 150 Ugandan children had worked for 10 years in quarries that supplied Hima Cement with pozzolana. Both Hima Cement and its parent company denied the claims. Later, Hima Cement subsequently announced that it would stop buying raw materials from small-scale miners and only source them from mechanised quarries that employ adults. At the same time LafargeHolcim commissioned an investigation that concluded that there was no evidence that children had worked for Hima Cement or for any of its other suppliers.

Uganda: Hima Cement’s new US$40m grinding plant at Nyakesi in Tororo District is expected to start production in early May 2018. Originally the 0.8Mt/yr plant was scheduled to open in June 2018, according to the East African Business Week newspaper. Opening early is dependent on the subsidiary of LafargeHolcim receiving a government mining licence.

Uganda: Trade minister Amelia Kyambadde has given local cement producers three weeks to lower cement prices otherwise. If they do not cooperate she will allow cheaper exports of cement into the country, according to the Daily Monitor newspaper. A recent surge in the price of cement has led to a crisis in the construction industry with panic buying, hoarding and rationing reported by retailers and consumers.

Uganda: Tororo Cement and Hima Cement have blamed falling production on reduced electricity supplies. Morgan Gagranihe, the executive director of Tororo Cement, said that production from the company’s plant at Tororo had fallen by half to 0.6Mt/yr from 1.2Mt/yr, according to the Daily Monitor newspaper. However, local power company Umeme has rejected the claims. It suggested instead that the cement producers were prioritising cement production for large-scale customers.