German Firm Targets Contractors With Mlolongo Factory

Germany-based chemical manufacturer BASF has opened a Sh1.2 billion factory in Mlolongo for the production of concrete mixture targeting real estate and public works contractors.

Dick Purchase, BASF vice-president in charge of construction and chemical division for Africa, Middle East, Turkey and Russia, says the Sh1.2 billion factory in Mlolongo for the production of concrete mixture has capacity to produce 10,000 tonnes day.  PHOTO | SALATON NJAU |

Dick Purchase, BASF vice-president in charge of construction and chemical division for Africa, Middle East, Turkey and Russia, says the Sh1.2 billion factory in Mlolongo for the production of concrete mixture has capacity to produce 10,000 tonnes day. PHOTO | SALATON NJAU | NATION MEDIA GROUP NATION MEDIA GROUP

The factory located along Mombasa Road will produce ready-to-use concrete mix for the Kenyan market and wider East Africa.

Dick Purchase, BASF vice-president in charge of construction and chemical division for Africa, Middle East, Turkey and Russia, said the new plant has capacity to produce 10,000 tonnes day.

The Frankfurt Stock Exchange-listed firm that is also involved in production of agricultural chemicals said in Kenya its focus is making construction materials targeting road, railway and oil contractors.

“Our focus market is huge investments that are currently taking place in the airports, real estate, road and bridges, including the energy sector,” said Mr Purchase.

BASF has been serving the East African market by importing most of its products for the past 20 years. It hopes to reduce costs through the local processing plant.

The company opened its Nairobi office in 2011 to oversee activities in East Africa.

“There are numerous advantages that will come along with establishment of a local plant that will serve the region but it’s hardly impossible to outline how much we are going to save given we have  cut  reliance on  imported finished  products,” said Mr Purchase.

He said the expansion will be funded through internal cash and the plant will be independently managed by the parent company in Germany.

“We have a neat business strategy for Africa given the numerous businesses opportunities that are coming up every day. There is a lot to do in Kenya,” said Mr Purchase.

BASF will also be setting up another manufacturing plant in Nigeria at the end this year.

– Business Daily