Kenyan construction materials manufacturer Devki Group plans to invest Sh45.5 billion ($453 million) in Kenya’s first raw steel production plant.
“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,” said Chairman Narendra Raval.
A total of Sh20 billion is expected to be invested in the plant by Devki and its partners, with 1,600 direct jobs and 9,000 indirect jobs expected to be created by 2020 when production commences.
Raval had in recent times expanded his investment in Kenya. Last year, he completed the full acquisition of Sosian Energy. Earlier in the year, he also launched a $280 million cement clinker plant located in Kajiado County, 80 km south of Nairobi. The clinker plant has a manufacturing capacity of 1.2 million metric tonnes per year. A 750,000 metric tonnes capacity steel plant in Nakuru and a one million metric tonne plant in Mombasa are slated for completion in 2019 and 2020 respectively.
According to Raval, the new steel plant will use blast furnace technology for primary steel manufacturing. Most of the power to be used will be generated internally by supply from the grid.
With locally sourced iron ore to be used for the production, the new plant is expected to reduce importation of industrial steel products and export of scrap metal for recycling.