ARM Cement Limited

Overview

ARM Cement is one of the largest manufactures of cement in Eastern Africa, accounting for 2.6 metric tonnes annually in 2014. ARM has operations in Kenya, Tanzania, and South Africa. Products manufactured include cement, fertilizers, quicklime, hydrated lime, sodium silicate and other industrial minerals. A new factory planned in Kitui, Kenya, is expected online in three to four years and will cost an estimated US$400 million to construct. Once operational, Kitui will increase ARM Cement Limited's production capacity to 5 million tonnes annually.{{cite web|title=ARM To Set Up A $400 Million Cement Plant In Kitui County|url=http://www.standardmedia.co.ke/business/article/2000104480/arm-to-set-up-a-400-million-cement-plant-in-kitui-county?pageNo=1| first=Philip|last=Mwakio|date=12 February 2014|accessdate=18 October 2014|newspaper=The Standard (Kenya)}}

As of December 2013, the company's total assets were valued at US$340 million (KES:29.7 billion), with shareholders' equity of about US$94 million (KES:8.223 billion).{{cite web |url-status=dead

History

ARM was founded in 1974 by the late Harjivandas J. Paunrana as a producer of agricultural lime.

His son, Pradeep Paunrana, is the current Managing Director and CEO of the company. In Kenya, the company has factories in Mombasa and Athi River, where their first cement factory was established in 1994. Cement production at Athi River commenced in 1996.

Shareholding

, the major shareholders in the company stock are as displayed in the table below:

Company divisions

The company is divided into the following divisions:{{cite web| url=http://www.armafrica.com/?page=armpltd|title=The Divisions of ARM Cement|date=|accessdate=18 October 2014|publisher=ARM Cement Limited}}

;Cement The company brand, "Rhino Cement" is manufactured in Kaloleni and Athi River in Kenya, and at company owned factories in Tanga and Dar es Salaam in Tanzania. ARM Cement maintains shareholding in Kigali Cement Company, a cement company in Rwanda and in a South African cement company.

; Mineral and Chemicals The division is responsible for the manufacture of "Special Building Products, Sodium Silicate and Industrial Minerals.

; Fertilizers This division produces fertilizer at the Athi River factory, under the brand "Mavuno Fertilizer".

; Rhino Foundation Established in 2010, to invest in the communities where ARM Cement has a presence.

Financial distress

According to The EastAfrican newspaper, ARM Cement was placed into administration in 2018, due to its inability to service its debts and meet its day-to-day financial obligations. George Weru and Muniu Thoithi of PricewaterhouseCoopers were appointed as joint administrators. The Nairobi Stock Exchange suspended the trading of the company stock, on 8 May 2020.

After the sale of some of the company assets in Kenya, Tanzania, Rwanda and South Africa, the joint administrators recommended the liquidation of the company, because the company assets could not fetch a price to match the amount owed to secured and unsecured creditors, in addition to shareholders. The liquidation process is expected to start on 30 September 2021. At the time ARM went into "receivership" on 18 August 2018, its total debt burden was approximately US$284 million.

References

References

1. Mugwe, David. (10 July 2013). "ARM Cement Increases Tanzania Investment As Profit Up 28 Percent". [[The EastAfrican]] (Nairobi).
2. M.W.. (2011). "Athi River Mining Shrugs Off Pricing Pressure To Cement Its New-Found Position In The Market". [[Nation Media Group]].
3. (2014-11-10). "Mavuno Fertilizer". ARM.
4. Biko, Jackson. (12 September 2013). "It All Started With A Bunch of Keys". [[Nation Media Group.
5. (31 December 2014). "ARM Cement 2014 Annual Report". ARM Cement.
6. James Anyanzwa. (27 April 2021). "Athi River Mining set for liquidation, delisting at the NSE". [[The EastAfrican]].