Uganda Clays to inject sh20b in new factory
Jul 03, 2007
UGANDA Clays is to spend sh20b on constructing a second factory in Kamonkoli, eastern Uganda, writes Peter Kaujju. “We acquired land and work is going on. Fifty percent of the cost of the project will be funded by shareholders, while the other half will be covered by loans,†John Wafula, the chi
UGANDA Clays is to spend sh20b on constructing a second factory in Kamonkoli, eastern Uganda, writes Peter Kaujju. “We acquired land and work is going on. Fifty percent of the cost of the project will be funded by shareholders, while the other half will be covered by loans,†John Wafula, the chief executive officer, told shareholders at the annual general meeting in Kampala.
The move is aimed at increasing production in order to meet the ever-increasing demand for building products in the country.
Despite the energy shortage last year, the company made a net profit of sh1.3b compared to sh953m in 2005.
In November 2006, the shareholders received sh200m interim dividend or sh40 per share but did not receive the final dividend because part of the profit was channelled to construction of the new factory.
The shareholders queried the company’s high operating costs. Wafula attributed the high costs to the power crisis, which made it mandatory for the company to buy generators and the high price of coffee husks, which are are a source of energy.
The move is aimed at increasing production in order to meet the ever-increasing demand for building products in the country.
Despite the energy shortage last year, the company made a net profit of sh1.3b compared to sh953m in 2005.
In November 2006, the shareholders received sh200m interim dividend or sh40 per share but did not receive the final dividend because part of the profit was channelled to construction of the new factory.
The shareholders queried the company’s high operating costs. Wafula attributed the high costs to the power crisis, which made it mandatory for the company to buy generators and the high price of coffee husks, which are are a source of energy.