Regional Cables and Conductors Manufacturer, East African Cables, fortunes are all set for good tidings following the commissioning of its flagship Copper production facility in Nairobi. As part of the firm’s corporate growth strategy, East African Cables, has completed refurbishment and upgrade works at its Kitui Road Copper Production plant.
The refurbishment and upgrade works, at more than Kshs 1billion, involved the construction of a new factory building and installation of modern cable and conductors manufacturing equipment.
Speaking, when he confirmed the works completion for the factory- scheduled to be officially opened later this September- outgoing East African Cables, Group Managing Director, Mr. George Mwangi, said the commissioning of the plant is a critical development for the firm, as Copper cables and conductors remain the firm’s mainstay.
The new East African Cables Copper factory, Mwangi explained, is a world class manufacturing plant that is unrivaled in sub-Sahara Africa and affords the company an opportunity and capacity to supply the East and Central African region, with Safe and Reliable Electrical Cables.
The refurbishment of the EAC Kitui Road plant, Mwangi, disclosed, has almost tripled the firm’s Copper cables and conductors’ manufacturing capacity.
With a 5.5% growth in the building and construction sector as noted in the 2014 economic survey, East African Cables, Mwangi noted is now well positioned to service the local and regional market demand for electrical cables.
“Until last year, the Copper plant has had capacity constraints” said Mr. Mwangi “although we had invested in a higher capacity for the drawing machine (the first step in cable making), the rest of the processes had bottlenecks that limited our potential to engage in efficient production. However, with the recent upgrade works that commenced in December 2013, we have now managed to significantly address the production bottlenecks and inefficiencies to meet regional demand,” He added.
The installation of the new equipment will also boost the firm’s capacity to rollout a range of new products to meet specific customer needs.
“The refurbishment of this Factory is a key project for East African Cables, seeing that increased volumes will see EAC become more competitive both on the production and price front, while maintaining high quality standards,” he assured. “The new factory is now at par with the best cable factories in the world, and will have the largest capacity in East and Central Africa”. Added Mr. Mwangi.
From a turnover of Ksh 800m in 2004 when TransCentury acquired majority stake in the business, East African Cables has been steadily enhancing its production capacity, fueled by increased investments in capital expenditure in addition to increasing its footprint through a robust distribution network in Kenya and the region and 2014 saw the company record a turnover of Ksh 5b.
Such investments are expected to significantly boost the firm’s ability to meet growing regional demand.