Hima Cement goes green, targets export market

Hima Cement, a subsidiary of Larfarge Group, has completed a major expansion project worth Ush265 billion ($118 million) with installed capacity of 10 million bags per year, as it seeks to satisfy growing demand and environmental compliance requirements.

The investment is in line with regional cement producer’s efforts to bridge output gaps and satisfy surging demand generated by boom cycles in the real estate sector and massive public infrastructure projects.

So far, cement firms have spent an estimated $1 billion in capacity expansion projects in the past five years, according to the East African Cement Producers Association.

Though Hima is ranked as Uganda’s top cement producer, its output levels have equally come under pressure in the past three years due to immense growth in both local and neighbouring markets, coupled with criticism over deadly emissions from its production process.

With original output of seven million bags per annum and similarly modest volumes from its sole rival Tororo Cement, Hima has been compelled to raise its output to match demand pressures.

Lack of modern equipment capable of high production volumes and low dust emissions has in the past led to significant environmental damage in times of load shedding, with local residents complaining of air pollution, respiratory diseases and crop cover destruction.

“Our new production capacity is capable of eliminating need for cement imports in the next two to three years. Advanced technology at the new plant will ensure little or no dust emissions because of its ability to treat waste with both normal and generator-driven power supply.”

A source at Hima Cement said, “Unlike the old plant that suffers from low generator capacity during load shedding hours, the new plant boasts of higher back up capacity, cleaner and consistent dust treatment cycles.”

Already, local cement prices have stabilised at about Ush30,000 ($13) per 50kg bag in recent months, though the emergence of fake cement in the market remains a challenge. Introduction of cleaner production systems by local firms is also expected to mitigate against environmental degradation and frequent clashes with the environmental regulator and civil society activists.

But the continued influx of cheap cement imports from India and Pakistan is deemed a big threat to the industry inspite of increased output levels.

With additional capacity at Hima, the firm’s total output per annum has subsequently risen to 17 million bags while Tororo Cement’s capacity has grown to 14 million bags, bringing the industry’s total annaul output to 31 million bags against the current annual demand estimated at 25 million bags.

The surplus capacity is targeted for export to neighbouring markets such as Rwanda and Burundi, leaving little or no need for imported cement.