Economy & Market

Cement prices expected to drop with opening of new plant

Published

on

Shares

Cement prices are expected to drop following the commissioning of a new plant by Hima Cement. The plant in Kasese District is expected to boost the construction industry with an expected drop in the price of cement as a result of increased production. Mr Hussein Mansi, the Larfage chairman, said the Ush280 billion plant will not only increase supply for the local and regional markets, but will also see prices become more competitive, especially if the government continues to lend support to local investors against an influx of cheap imports. Mr David Njoroge, the general manager of Hima Cement, said with the plant already in operation, the impact of increased production from a previous capacity of 350,000 tonne a year to 850,000 tonne is already showing some benefits to Ugandans. He said: "With a daily average of 500,000 bags, the price of cement has already dropped from a high of about Ush30,000 to about Ush26,000." "This is a good start, and as other factors that increase the cost of production get sorted, it will not be long before prices drop further." However, despite the increase of cement production, observers say prices must further drop in order to genuinely develop the construction. Observers say current prices make it hard for a common man to build a house for himself. However, industry players maintain that this is a good start, which will see the cost of cement drop further.

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending News

© COPYRIGHT 2024 ASAPP Info Global Services Pvt. Ltd. All Right Reserved.