This archive report was first published on 21 May 2020.
Published on May 21, 2020, Huaxin Cement has acquired Maweni Limestone Limited, the Tanzanian unit of Athi River Cement (ARM) Cement, to complete one production plant.
According to a joint statement from PwC and Huaxin, the company will clear the unit's debt worth $116 million and invest $30 million to upgrade the plant.
“Securing a suitable investor with the ability to make the requisite investments and inject much-needed capital to boost Maweni’s operations was a top priority given Maweni’s dire financial situation,” Muniu Thoiti, a PwC administrator, quoted by Reuters.
ARM Cement's Tanzanian unit faced financial difficulties after a substantial investment in the country did not yield returns. The company had installed two plants with an annual production capacity of 1.6 million tonnes in Tanzania, in addition to two plants with a yearly production capacity of 1 million tonnes in Kenya and another with 100,000 tonnes annually.
ARM Cement's financial struggles led to its shares being suspended from trading on the Nairobi Securities Exchange in 2018. The company was put under administration by its creditor over a KSh 7.9 billion debt.
Earlier last year, National Cement acquired ARM Kenya for KSh 5 billion.
