(Updates with comment by president in fourth paragraph.)
July 19 (Bloomberg) -- Numerical Machining Complex, a Kenyan state-owned machine-tool manufacturer, plans to build a factory that will produce steel from scrap metal, President Mwai Kibaki said.
The plant will be built at Athi River, 26 kilometers (16 miles) southwest of the capital, Nairobi, Kibaki said in a statement e-mailed by his office yesterday. NMC, as the company is known, needs 5 billion shillings ($55.4 million) to fund its expansion, Business Daily, a Nairobi-based newspaper reported today.
Manufacturing is one of six industries being targeted by Kenya’s government under a program that seeks to achieve an average annual economic growth rate of 10 percent over the next two decades to help the country reach middle-income status by 2030.
NMC may generate revenue of 30 billion shillings a year and create “tens of thousands” of jobs if it increases capacity sevenfold to 21 metric tons per hour, Kibaki said, without providing further details.
Kenya’s industrialization and finance ministries have been asked to find ways of financing the projects, which are “critical in taking the country to the next level of development through industrialization,” Kibaki said.
--Editors: Karl Maier, Ben Holland
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