ARM Cement says profit growth will continue in 2014
ARM Cement Ltd, Kenya’s second-biggest cement producer, said on Tuesday it expects profits to grow again this year after posting a 12% rise in full-year pretax profit in 2013.
ARM, which trails Bamburi Cement Ltd in capacity, said improving demand in Kenya and Tanzania was likely to drive growth in 2014.
“Plans have been implemented to improve capacity utilisation and increase operational efficiency in Kenya and Tanzania which will lead to improved profitability,” the company said in a statement.
East African cement consumption is growing thanks to vibrant economic growth, an expanding middle class and large infrastructure projects planned by governments.
ARM said it plans to start producing its own clinker within the second half of the year for use in its cement factory in Dar es Salaam.
“The Dar es Salaam plant manufactured cement using imported clinker. The profit margins are expected to improve after the Tanga clinker plant becomes operational in the second half of the year,” the company said.
ARM said it would continue pursuing trade and investment opportunities in South Sudan despite fighting between rival factions which has displaced hundreds of thousands of people and limited trade.
By Drazen Jorgic
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