Change in the Price of Blue Triangle Cement
East African Portland Cement PLC has announced an increase in the ex-factory price of Blue Triangle cement effective immediately.
The price change is contained in a management approved price change memo from the Sales and Distribution Manager, Mr. David Kilonzo to distributors and trade partners. While announcing the decision to increase the price, Mr. Kilonzo noted that the decision has been occasioned by high costs of raw material and inflation which has pushed up costs of inputs.
“Currently, the local cement market is facing a high demand and low supply situation owed to the fact that the international clinker market is still reeling from the effects of disruptions to clinker supply chains that were precipitated by the Covid-19 epidemic and that caused a surge in the transportation of this key ingredient in the manufacture of cement”, said Mr. Kilonzo
Speaking to Newsdesk on the costs of input, the Manager – Financial Reporting, Mr. Samuel Ngunjiri said that the cost of energy in Kenya has significantly gone up and this accounts to a large cost of cement production adding that Diesel and Coal are among the key energy cost drivers whose costs are up. “The cost of electricity has also been on an upward trend. This is not only attributed to the rate of inflation in the country, but also to the climate change. Recently, we have been experiencing long term dry seasons, and if this doesn’t change, hydroelectric power generation, which depends on water levels will also be affected. This will result to higher electricity prices as well as shortages. Not just industries, but homes as well have felt the impact of increased power prices that have had a major impact on our lives”, said Mr. Ngunjiri
The company is however considering investing in alternative sources of energy that will enable production of clinker at a lower cost and this savings will definitely be passed on to our customers to ensure that they are in business as well.
EAPC Plc Bets on New Strategic Cycle, Launches New Image and Positioning
The Company has rolled out an ambitious 5-year business modernization and expansion cycle which highlights the future priorities of East African Portland Cement Plc. The Board of Directors has pegged on a new long term performance driven cycle to put back the company firmly on a profitability path to build on the last three years turn around period.
We aim to increase value to our shareholders through a concentrated focus on the Athi River plant modernization and a rapid market growth supported by performance driven workforce. To set tone for the ambitious agenda, the Board has prioritized and completed sweeping changes to the top management, tapping top executives from the private sector to the management team led by appointment of Mr. Oliver Kirubai as new Managing Director who is expected to drive the new company direction. “Our ambitious new business strategy is anchored on major investments in our factory to give us a platform to produce and outgrow cement demand in East Africa.” Said the Managing Director
“Despite the high costs of energy and an old clinker line, we have already seen steady results in the last six months from the ongoing business reorganization initiatives which will enable us inject capital in the factory. We have our business priorities firmly in sight. We are at the tail end of our balance sheet restructuring and this coincides with the start of a new business period of a disciplined, performance driven culture where we expect to outgrow the regional cement market. We are looking at going beyond Kenya into Rwanda and DRC as well.” He added.
The new strategy period comes at the background of ongoing cost containment drive to salvage years of corporate mismanagement and factory neglect by previous managements. Years of bloating an unsustainable work force and declining market share had sent the one-time cement giant on a cash crisis, compelling the board to start a turnaround strategy in 2019. In the half year June to December 2021, the Company narrowed its loss compared to the same period the previous year signaling a positive direction in our turnaround strategy.
Blue Triangle Cement, our flagship brand has a strong position in the East African infrastructure market and we aim to use this strong brand heritage to expand our regional offering. The focus on plant refurbishment will boost cost leadership strategy as our growth engine.
With the new strategy, we are shifting away from years of public sector culture and injecting a performance driven workforce which will accelerate growth and achieve 70% mid-term growth on productivity.
“Our strategy cycle will enable growth through a modern plant which will enable us meet our shareholder expectations as well as increase our investment on our people, the communities we operate in and the planet,” said the Managing Director.
We are also targeting growth in our volumes and brand portfolio and we are set to increase our number of brands to satisfy the different demands in the diverse cement market in order to increase our market share.