, NAIROBI, Kenya, Apr 25 – East African Cables has outlined plans to invest more than Sh1 billion for capacity to produce medium voltage cables.
Speaking when he addressed shareholders during the firm’s 48th Annual General Meeting (AGM), the company’s Chairman Zeph Mbugua confirmed that the 2013-2014 market outlook will be boosted by marketing of a new range of products to regional power distributors and contractors.
“The market demand for medium voltage cables is expected to grow, as regional power distributors continue to scale up their network rehabilitation works,” he said.
Mbugua said they will be seeking to focus their energies on the medium voltage market segment in tandem with on-going efforts to deepen their export sales in Sub Saharan Africa.
“The firm will also maintain its anti-counterfeit program to safeguard its consumers through the recently introduced Product Verification System,” he added.
To meet the growing demand for its existing range of products, Mbugua confirmed that the firm has continued to upgrade its production plant in the last financial year. “The upgrade will continue to boost its production efficiencies,” he noted.
The market demand for medium voltage cables is expected to grow, as regional power distributors continue to scale up their network rehabilitation works.
During the AGM, East African Cables shareholders approved the payment of a final dividend of Sh0.60 per share alongside the earlier declared interim dividend of Sh0.40 per share now amounting to Sh1 per share against last year’s Sh0.80 dividend payment.
The CEO of East African Cables George Mwangi noted that the group earnings after tax grew by 66 percent in 2012 compared to 2011.
The growth in earnings was driven by increased export sales, production efficiency, cost reduction, more stability in the regional currencies and improved profit from our subsidiary in Tanzania.
Among other products, East African Cables will also enhance marketing of cables for overhead power distribution known as Aerial Bundled Conductors (ABC) with a capacity to significantly reduce power losses.