Amsons Group, the Tanzanian business conglomerate in the race to acquire Bamburi Cement Plc (NSE: BAMB), has announced plans to enhance its market capacity with two new production expansion projects in Tanzania.
Alongside its US$180 million bid for Bamburi Cement, Amsons Group has announced a US$320 million development plan to build an integrated clinker and cement manufacturing plant in Tanga, Tanzania, with a cement production capacity of 5,000 tons per day.
Adding to its regional play, Amsons plans to upgrade the recently acquired Mbeya Cement in Tanzania, with plans for a new grinding mill, setting the stage for a transformative impact across East Africa’s cement industry.
Amsons Group Managing Director, Mr Edha Nahdi, said the firm is firmly focused on its regional market expansion strategies. These strategies are underpinned by a proposed greenfield cement manufacturing set up in Tanga, expansion of the existing Mbeya Cement Factory, and the offer for the acquisition of Bamburi Cement in Kenya to complement its existing enterprises, including its Dar-es-salaam-based Camel Cement Factory.
If successful in its Bamburi Cement acquisition, Mr Nahdi said the firm plans to invest a further US$400 million in a medium-term commitment in foreign direct investments (FDI) to modernise Bamburi Cement’s grinding and clinkerisation plants. The offer, placed through its Kenyan subsidiary and investment vehicle, Amsons Industries (K) Ltd, will involve acquiring up to 100% of the shares in Bamburi for Sh65 per share.
In its binding offer issued on 22nd October 2024, Amsons announced potential plans to develop a clinker plant at Matuga, Kwale County, to secure raw material self-sufficiency and reduce production costs for Bamburi Cement. This investment will enhance Kenya’s competitiveness in the regional construction industry.
“Thanks to the support of the Tanzanian and Kenyan governments, our regional expansion plans are now firmly on course. We plan to be one of the largest cement manufacturers in Kenya and Tanzania by 2030,” said Mr Nahdi. In its offer document to Bamburi shareholders, the Tanzanian conglomerate also affirmed its dedication to preserving and developing Bamburi’s workforce and nurturing local talent.
Amsons Group is a family-owned business founded in 2006 in Tanzania. Its primary business operations historically involved bulk oil and petroleum products importation under the Camel Oil Tanzania retail brand.
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