Author: Paul Ploumis
30 Mar 2015 Last updated at 03:56:07 GMT
BEIJING (Scrap Monster): The Chinese state-owned steel enterprise Sinosteel Corporation has signed a Memorandum of Understanding (MoU) with the Kenyan government to build new steel plant in Kenya. The said investment is expected to improve Kenya’s trade balance and foreign reserves position as the country currently relies on imports to meet much of its steel demand.
According to Adan Mohamed, Kenyan Cabinet Secretary for Industrialization and Enterprise Development the country’s estimated annual steel demand stood at 1.8 million metric tonnes as at end-2013. The Kenyan steel demand is projected to touch 2.5 million metric tonnes by 2020. Further, the demand is forecast to double by 2030.
The ongoing real-estate boom in the country coupled with rising demand from railway and road network construction projects is expected to further increase the country’s demand for steel and steel products. The Kenyan government plans to invest billions of dollars in domestic infrastructure projects over the next 3 to 5 years. The exploration works of iron ore and coal deposits are at an advanced stage, stated Mohamed. Sinosteel’s rich experience in this sector is expected to further accelerate the implementation of these projects.
Meantime, Wang Jian, Managing Director, Sinosteel Corporation expressed optimism on signing the contract and stated that the growing steel demand from real estate and infrastructure projects make it the right time for Kenya to make key investment in domestic steel plants.
Founded in 1993, Sinosteel is a leading steel development firm based in Beijing, China.