KEDA Industrial Group had announced recently that it planned to invest approximately 600 million yuan in the construction of a glass project in Tanzania, Africa, to execute the category expansion of its core business of building materials.
The announcement indicated that the company planned to invest 86.7627 million USD (around 598 million RMB) in the construction of an architectural glass production project in Tanzania, of which 34.7627 million USD would be funded by the local project implementation body in Tanzania, and 52 million USD would be provided by commercial banks or financial institutions.
KEDA Industrial Group confirmed that the investment abroad was a significant step of the company to implement the strategy of "Pluralistic Building Materials" actively in the overseas building materials sector, utilize the company's channel coordination advantages fully in Africa and expand relevant diversified fields of overseas building materials business horizontally from building ceramics to sanitary ware and architectural glass etc., to achieve the sustainable development of building materials business.
At present, KEDA Industrial Group had 14 production lines of building ceramics in operation in Africa. To meet the gradually increasing market demand in Africa, KEDA Industrial Group had also disclosed in the announcement that it planned to invest 36.1104 million USD for the second phase production line of the ceramic production project newly built in Zambia for more production capacity of building ceramics, and 6 building ceramics and sanitary ware lines were expected to be put into production this year.
In recent years, KEDA Industrial Group had established itself in the African market and achieved rapid development by manufacturing ceramics as an important move. At the end of 2015, KEDA Industrial Group established a joint venture company with Guangzhou SUNDA International Trading Co Ltd., a building materials trading company who had worked its way into African markets, and the joint venture company mainly engaged in ceramic tile and other businesses. In 2016, KEDA Industrial Group launched its first ceramic factory in Kenya, Africa, with an achievement of "starting and completing construction in the year, putting into production and making profits in the same year as well". In 2017, several ceramic factories went into operation in Ghana.
From this, KEDA Industrial Group had gradually established bases and built its own ceramic production lines in many countries such as Ghana. Relying on SUNDA's widespread distribution network in Africa, KEDA Industrial Group had increased the market share of its building ceramics rapidly and realized stable growth in the business of building ceramics.
To implement the strategy of "Pluralistic Building Materials" and realize the localized manufacturing of various categories of building materials in Africa, the company had officially prepared to build sanitary ware projects in Ghana and Kenya, with an annual production capacity expected to reach 2.6 million pieces after completion.
KEDA Industrial Group said that it would continue to take root in Africa and focus on the extensive market of building materials. Based on the bigger and stronger business of the building ceramics, KEDA Industrial Group would expand product categories in multiple dimensions and accelerate the localization of various categories of building materials in Africa, to achieve the transformation from a supplier of building ceramics to a building material manufacturing industrial group with international competitiveness.
(Reprinted from Shanghai Securities News)
KEDA Industrial Group to Invest in the Construction of Glass Project in Tanzania to Expand Its Core Business Category of Building Materials
loading... 13 Apr 2023
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