Hima Cement eyes major infrastructure projects

Hima Cement country chief execuive officer Daniel Pettersson flags off the newly-introduced Cement Bulkers at Kyadondo Rugby Grounds, in Kampala last week. COURTESY PHOTO

What you need to know:

Capacity. Firm introduces trucks that will each carry 28 to 32 tonnes of cement targeting big constructors.

Kampala. Hima Cement has opened a new line of business that will be supplying large quantity of cement to big industry players involved in the construction sector.
Although this is not an attempt to get rid of the 50-kilogramme quantity of cement on the market, the focus, according to Hima senior managers is to lay ground for huge infrastructural projects, most of which have been budgeted for in the Shs2.6 trillion budget of the Ministry of Works and Transport.
Speaking during the launch of the specialised trucks that will be ferrying the cement in bulk to the different sites, the Hima Cement country chief executive officer, Mr Daniel Pettersson, said the local market prospects are exciting and something worth to cheer up for.
He said: “Projects such as Karuma and Isimba dams, the oil refinery, the construction of the pipeline and the railway will all drive growth, and as local players in the sector, we have to be prepared to take the opportunity.”
He continued: “The new delivery service offers contractors a more efficient mode of receiving cement at their construction sites, reducing logistics costs associated with handling bagged cement.”
“This mode of delivering cement is the standard practice in developed countries. Uganda is on a rapid growth path and as a key player we are ready to meet the demands in this market. We are evolving from being a producer of cement only, to a partner for solutions,” Mr Pettersson said last week while launching the bulk cement trucks at Kyadondo Rugby Grounds.
The introduction of the service comes as the country sees a rise in the number of big infrastructure projects boosted by high levels of public and private investments. Investments in transportation infrastructure, power plants and utilities, commercial construction and property development are expected to rise further in the forthcoming years prior to first commercial oil production.

What the cement manufacturer has invested over the years

“In 2010, Hima Cement made a significant investment to increase production capacity to 850, 000 tonnes a year. The new bulk cement service will now make the delivery system more efficient for our customers,” reads the Hima Cement press statement
Total investment including the 20 specialised trucks launched last week, has far cost the cement manufacturer about $200million (about Shs540 billion).
But minus the investments in the specialised truck, which distributors are encouraged to own, the company has thus far invested about €100 million (about Shs340 billion).
Each truck has a capacity to transport 28 to 32 tonnes of cement. This means a cleaner environment and faster completion of projects as less time is spent loading, unloading and emptying the cement from bags.

Demand for cement
Hima cement country chief executive officer, Daniel Pettersson said demand for cement in the country is projected to grow at a rate of 13 per cent outpacing the Gross Domestic Product at 7 per cent and electricity demand which stands at 10 per cent.