Devki plans Sh45bn raw steel processor
The first phase will see Devki and its financing partners invest Sh20 billion in the plant expected to create 1,600 direct jobs and 9,000 indirect jobs
By JAMES KARIUKI
IN SUMMARY
Chairman Narendra Raval said all design drawings as well as environmental impact assessment audits for the Kilifi-based plant with an annual capacity of 300,000 metric tonnes have already been approved.
The steel plant, he said, will use blast furnace technology for primary steel manufacturing largely using internally generated power supplemented by supply from the grid.
Several other cement plants are also in the works.
Bamburi Cement Limited has finished constructing a new production line worth Sh4 billion at its Athi River grinding plant, piling its production capacity by 900,000 tonnes.
Family-owned construction materials manufacturer Devki Group says it plans to inject Sh45.5 billion in the region’s first raw steel production plant seeking to exploit locally sourced iron ore.
Chairman Narendra Raval said all design drawings as well as environmental impact assessment audits for the Kilifi-based plant with an annual capacity of 300,000 metric tonnes have already been approved.
“Only South Africa has an industrial raw steel production plant and our plan is to give Kenya steel products manufacturers cheaper access to industrial raw steel. We will exploit local iron ore mines thereby helping us generate new wealth and jobs,” he said.
The first phase will see Devki and its financing partners invest Sh20 billion in the plant expected to create 1,600 direct jobs and 9,000 indirect jobs in elated activities like mining and transportation when it kicks of production in 2020.
“This project is funded by banks and internally generated funds by Devki Steel Mills Ltd.
Kenyan steel factories rely on industrial steel products imports as well as scrap metal to manufacture TMT bars, steel tubes, angles bars, barbed wire nails among others,” said Mr Raval.
Blast steel furnace
The steel plant, he said, will use blast furnace technology for primary steel manufacturing largely using internally generated power supplemented by supply from the grid. Iron deposits have been discovered in former Eastern and Coast provinces.
Mr Raval said the new plant should see Kenya shun importation of industrial steel products and export of scrap metal for recycling. Iron and steel are among the most imported products in Kenya after capital machinery and petroleum products.
Devki, known for its steel and cement products is also on an expansion drive where a 750,000 metric tonnes capacity plant in Nakuru and a one million metric tonne plant in Mombasa are slated for completion in 2019 and 2020 respectively.
World Bank’s private investment arm International Finance Corporation has injected Sh9.7 billion into Devki projects whereby Sh9 billion will be in form of loans and Sh700 million as equity. Mr Raval, its major shareholder is expected to chip in Sh10.3 billion.
Several other cement plants are also in the works. Bamburi Cement Limited has finished constructing a new production line worth Sh4 billion at its Athi River grinding plant, piling its production capacity by 900,000 tonnes.
Bamburi is the largest cement producer with a 32.4 per cent market share followed by Mombasa Cement and National Cement with 20 per cent and 18.4 per cent share respectively