Bamburi Cement is positioning itself to tap into one of the biggest construction-materials opportunities created by the planned Dangote East Africa Petroleum Refinery in Lamu, with the cement manufacturer seeking to supply about one million tonnes of cement and concrete products required during the project’s construction.
The Mombasa-based manufacturer says it has the capacity to produce and deliver the materials from its coastal operations as construction of the KSh2 trillion refinery and petrochemical special economic zone gets underway.
Bamburi Chief Executive Officer Geoffrey Ndugwa said the company is pursuing a commercial opportunity to supply the project throughout its development cycle, although no final supply contract or confirmed order has been announced.
The opportunity comes after the groundbreaking of the refinery in Lamu on September 30, with the facility planned to process up to 700,000 barrels of crude oil per day once completed.
For Bamburi, the scale of the project represents a significant potential market for locally manufactured construction materials, particularly given expectations that the refinery’s civil and related works will consume approximately one million tonnes of cement and concrete solutions.
“The civil and related construction works for the 700,000 barrel-per-day refinery will consume an approximate 1 million tons of cement and concrete solutions, and we are well positioned to manufacture and deliver to the project site from our Mombasa plant,” Ndugwa said.
The manufacturer is proposing specialised products suited to the conditions expected at the coastal industrial site, including Bamburi DuraCem, a 42.5-grade cement designed to withstand sulphate and chloride exposure.
The company is also offering its Ultra-series concrete products, including waterproof, self-compacting, pervious and fibre-reinforced concrete, targeting different requirements that could arise during construction.
The proposed deal would give Bamburi an opportunity to supply materials beyond the initial civil works as the refinery and associated facilities take shape, although the final quantities, contract value and procurement arrangements will depend on decisions by the project developer.
The potential opportunity comes as Bamburi works to strengthen its own manufacturing capacity.
The company has signed a $250 million, approximately KSh32 billion, engineering, procurement and construction contract with Sinoma CBMI Construction for a new clinker plant in Matuga, Kwale County.
The planned facility is expected to produce 1.6 million tonnes of clinker annually, with Bamburi projecting an increase in clinker production capacity from one million to 2.6 million tonnes per year.
Its cement production capacity is also targeted to rise from 1.8 million tonnes to four million tonnes annually, according to the company’s expansion plans.
Bamburi has previously supplied cement and concrete for several major infrastructure projects in Kenya, including the Standard Gauge Railway, Dongo Kundu Highway, Mwache Dam, Thwake Dam, Makupa Bridge and Talanta Sports Stadium.
The Lamu refinery could therefore provide another major industrial project through which the manufacturer can deploy its expanded production capacity, particularly as the government promotes the use of locally manufactured products.
The refinery is being developed as a $16 billion project and is expected to include associated petrochemical facilities and a 1,000-megawatt power plant. International engineering and technology companies, including Engineers India Limited and Honeywell, are also involved in different aspects of the development.
However, Bamburi’s commercial opportunity remains at the proposal stage. The company is seeking to compete for the supply business, but the eventual volume and value of any deliveries will depend on the refinery’s procurement process and the contracts awarded during construction.
For Kenya’s cement industry, the development nevertheless highlights the potential demand that large-scale industrial projects can create for local manufacturers, with the Lamu refinery emerging as a major potential market for cement, concrete and other locally produced construction materials.
