Portland Cement to use coal as their main fuel

Last Updated 15 years ago by Kenya Engineer

East African Portland Cement Company in November 2010 appointed Mr Kephar Tunde as its new managing director replacing Mr John Nyambok who quit in July. Mr Tunde had been acting as MD since Mr Nyambok’s departure and was previously the general manager in charge of finance.

EAPCC has been feeling the weight of increased competition and this was evident when they announced a Sh292 million loss in the year ended June 2010. The loss was mainly attributed to rising production costs and higher energy expenditure.

The firm proposes a switch from electricity and diesel to coal to cut down power bills and operation costs. Electricity forms the company’s most expensive input and using coal to drive the machines would certainly result in savings and hopefully cut its energy costs by at least 30 per cent. “We have to cut down costs, especially production costs and that is why we have moved towards coal.” said board chairman Mark Karbolo.

Bamburi Cement, the largest cement producer which commands more than half the market and Athi River Mining the third largest, use coal as the main fuel for their plants.

At the company’s AGM  on November 8, 2010  chairman Karbolo said EAPCC would set up  a factory in Uganda next year at a cost of Sh10 billion. The plans follow shareholders’ approval to transform what has been a distribution centre to a fully fledged operation. Karbolo said the plant will increase distribution of its products in the region. “Other than increase our market share in Uganda, the plant will enable us attack the markets of Rwanda, Southern Sudan  and DR Congo where infrastructure and construction industries are growing, he said.