ARM Cement Limited
About the project
ARM Cement, established in 1974, is a publicly held company listed on the Nairobi Securities Exchange. The company is one of the largest cement manufacturers in the region and is tapping into high demand for raw building material given the urban growth accelerating across Africa. ARM engineers, builds and operates world class cement plants, with lower than average capital costs, to supply Africa’s growing infrastructure, housing and construction needs. The company is also a leading manufacturer of sodium silicate, lime, industrial minerals, formulated fertilisers and special building products.
Since listing in 2007, ARM Cement expanded its operations through internally generated cash flow and borrowing. However, the capital intensive nature of cement projects resulted in the company seeking a potential financing partner to take a significant minority stake in the business to help fund growth. ARM looked to AFC to provide advice, project manage and develop and to co-invest in the company.
AFC provided a US$50 million investment in the form of convertible debt ARM. The investment is being used to support ARM’s future expansion initiatives across Eastern and Southern Africa and the firm has recently commissioned a 500tpd clinker/ cement plant in Tanga, Tanzania.
ARM’s projects, although highly-capital intensive, produce significant benefits, including:
- Direct and indirect employment
- Local capacity development
- Utilisation of local primary industrial products
All the above provide significant positive socio-economic impact regionally and this project paves the way for further investment in the sector.