Athi River Mining Cement (ARM Cement) in Kenya, has seen a 28% increase in pretax profit for the first nine months of 2013, which ended on 30 September. The higher profits were due to a rise in sales in the region. ARM Cement has reported a rise in profits to KES1.53 billion (US$17.88 million) and a 32% increase in turnover to KES10.2 billion.
As previously reported by World Cement, the cement producer forecast a 35% rise in earnings due to increased production capacity made possible by the new 750 000 tpa cement grinding plant in Tanzania.
Consumption of cement in East Africa is on the rise due to lively economies, attracting the attention of foreign cement manufacturers such as Dangote Cement in Nigeria that has plans to construct a new plant in Kenya costing US$400 million. Construction is one of Kenya’s fastest growing industries, and has been over the past ten years, due to higher disposable incomes of the country’s population.
Edited from various sources by Rosalie Starling
Correction: In the original version of this article published on 5 November 2013, World Cement incorrectly reported that ARM Cement has further plans to launch a second plant in Tanzania in partnership with Tanga Cement. This is not the case and no such agreement is in place between the two companies.
Read the article online at: https://www.worldcement.com/africa-middle-east/08112013/kenya%E2%80%99s_arm_cement_has_seen_a_rise_in_pretax_profit_in_the_first_nine_months_379/