Hima cement limited
Background
On December 14, 1994, Uganda Cement Industries was privatized by the Uganda government and divided into two companies; Tororo Cement and Hima Cement Limited. The new owners of Hima incorporated a company Hima Cement (1994) Uganda Ltd to take over the assets of the company.
In April 1999, Bamburi Cement Limited a subsidiary of Lafarge together with Lafarge itself acquired 100% shares from the previous owners. In July 1999, the name of the company was changed from Hima (1994) Uganda Ltd to Hima Cement Ltd. Today, the company is owned by Bamburi Cement Limited and ultimately Lafarge which is the world's largest building materials company.
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The cement market in Uganda |
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The Uganda market has experienced steady growth in consumption with compounded annual growth rate of 9.8% between 2002 and 2008 and this trend is expected to continue in the short term with CAGR of 10.3% over 9 years. The market comprises of two players, Tororo cement with an installed cement capacity of 800Kt and Hima cement with an installed capacity of 350Kt.
Currently, Uganda is a net importer of cement from Kenya. The location of the Hima plant on the Western border is ideal for exports to Rwanda, DR Congo & Burundi thus requiring Bamburi imports to supply the domestic market to maintain Lafarge share. Hima currently exports about 70% of cement produced at the plant in Kasese. |
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Production Capacity |
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Uganda Cement industries had initially built the plant to produce 240,000 tons of cement a year, but was producing a paltry 20,000 tons by the time of privatization. When Hima took over, management embarked on a mission to improve efficiency and increase production with the aim of maximizing the plant's capacity. By 1999, production had been increased to 170,000 tons per annum, and since then the new owners (Lafarge) increased the plant's production capacity to 350,000 tons per annum.
In 2008, Hima Cement Ltd. embarked of a capacity increase project known as "Rwenzori Project". And on 26th of July 2010, the first bag of cement rolled off of Hima’s brand new line signalling the successful conclusion of the expansion project that had been 3 years in the making. Production capacity increased to 850,000 tons per annum after Rwenzori project was completed. Hima Cement Plant is located 400km to the southwest of the capital Kampala. |
Hima EmployeesHima employs about 360 permanent employees and 200 contractors in Kasese, while about 25 employees work at the head office in Kampala and about 40 employees are based at the depots in Tororo and Kampala Good shed. On the Rwenzori Project is a team known as the Operation preparation team comprising of 90 employees. The company also engages a large number of contractors on various fronts such as transportation, maintenance, and security provision among others. |
