Business
Uganda Clays applies for its own industrial power
UCL’s tile output that stood at 31,800 tonnes last year, is expected to rise sharply as the company enhances its production capacity. Photo/ANTHONY KAMAU.
Posted Monday, March 15 2010 at 00:00
Uganda Clays Ltd looking for dedicated power to improve production efficiency as part of an expansion programme which begun three years ago.
UCL, the country’s leading producer of clay building materials is holding talks with Umeme, the local electricity distributor to allocate a dedicated industrial power line for its new Kamonkoli factory in eastern Uganda.
This is expected to curb frequent power fluctuations currently being experienced with the general line.
Charles Rubaijaniza, the company’s executive director said: “Power interruptions disrupt production shifts, delay deliveries and damage machines.”
Mr Rubaijaniza said the company also intends to refurbish the powerhouse.
Ultimately, the company hopes that the new operational strategies will among others, lower production losses, power interruptions and turnaround times for its tile and brick products
UCL will also buy more generators to mitigate the effects of frequent load shedding caused by insufficient power supply.
Currently, the company spends an average Ush70 million ($33,997) per month on diesel to power its generators.
Analysts are optimistic that increased efficiency will boost UCL’s profitability in the medium term with positive effects registered on the distribution chain.
A stockbroker who requested anonymity said it was necessary for the company to make key capital investments to ensure long term growth.
“There are also signs that UCL is interested in leaner and more effective distribution chains in western Uganda,” he said.
UCL will also continue its equipment modernisation programme as part of its move to improve efficiency.
The company has already entered an arrangement with an Italian firm, Morando, a global supplier of clay production equipment, for the procurement of industrial spare parts valued at Ush150 million ($72,851).
The acting finance manager of UCL Richard Kajungu, said this will help to fix old equipment and ensure regular maintenance of new equipment.
The firm has also procured more clay reserves to meet rising production levels.
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