Hima Cement Limited

Hima Cement Limited is a Ugandan cement manufacturer whose principal operations are based at Hima in Kasese District, in the country's Western Region. The company also operates a major plant in Tororo in eastern Uganda, a limestone quarry at Dura in Kamwenge District, warehouses in Kampala and Tororo, and a corporate office in Kampala. Its products serve construction, infrastructure, housing and civil-engineering projects in Uganda, with a portion of output exported to neighboring South Sudan, the Democratic Republic of the Congo and Rwanda. The business emerged from the restructuring and privatization of Uganda Cement Industries in 1994. The former state enterprise was divided into Hima Cement and Tororo Cement, which were subsequently acquired by different investors. In 1999, the French industrial group Lafarge acquired all of Hima Cement's shares and rebranded the company as Hima Cement Limited. Under Lafarge and later Holcim, the company expanded its manufacturing footprint and increased production substantially from the approximately 20,000 metric tonnes associated with the business in 1994 to hundreds of thousands of tonnes annually. By 2011, reported production capacity had reached about 850,000 tonnes. A major expansion was completed in eastern Uganda in 2018, when Hima Cement brought a new factory on the Tororo-Mbale-Soroti road into operation. The project was reported to have cost US$40 million and to have added annual capacity of approximately 850,000 tonnes. Combined capacity at the company's Hima and Tororo facilities was reported at approximately 1.7 million tonnes in 2018, while later descriptions placed total annual output or capacity near 1.9 million tonnes. In 2019, Hima was described as Uganda's second-largest cement manufacturer, with estimated production of roughly 2 million metric tonnes and about 28 percent of national output. Approximately one-fifth of production was exported to regional markets. Hima Cement has supplied large public and private infrastructure projects. In 2017, it signed a memorandum of understanding with China Communications Construction Company covering 120,000 metric tonnes of cement for the expansion of Entebbe International Airport and road projects including the Mubende-Kakumiro-Kagadi Road and the Tororo-Mbale-Soroti Road. The company was also identified as the largest cement supplier for construction of the 600-megawatt Karuma Hydroelectric Power Station, built during the 2013-2020 period. Ownership changed again in 2023-2024. Before the transaction, Holcim held 70 percent of Hima Cement and Cementia Holding AG held the remaining 30 percent. In November 2023, Sarrai Group agreed to acquire Holcim's stake for US$84 million, while Rwimi Holdings agreed to acquire Cementia's stake for a reported US$36 million. The transactions required regulatory clearances in Uganda, Kenya, Switzerland and under COMESA rules. Completion was announced on 5 March 2024 after the approvals were obtained, making Hima Cement part of the Sarrai Group's industrial portfolio while leaving Rwimi Holdings with a minority interest. The company has also pursued industrial waste-reduction initiatives. In November 2023, Hima Cement and Coca-Cola Beverages Uganda signed a three-year memorandum of understanding under which collected plastic beverage-bottle waste would be transferred to Hima Cement for use as kiln fuel in cement production. This initiative links the company's high-temperature manufacturing process with a plastics-recovery program. Hima Cement remains an active Ugandan building-materials producer, with its competitive position based on local limestone resources, geographically separated manufacturing plants, infrastructure-project supply relationships and access to regional markets.

Hima Cement traces its corporate history to the privatization of Uganda Cement Industries in 1994. The former parastatal was split into two businesses, Hima Cement and Tororo Cement, which were sold to separate investors. Hima Cement subsequently came under the ownership of Lafarge, which acquired 100 percent of the company in 1999 and adopted the Hima Cement Limited name. The business later became part of Holcim following the international combination of Lafarge and Holcim. The company expanded production from a reported 20,000 metric tonnes in 1994 to approximately 850,000 tonnes of annual capacity by 2011. Its principal plant is located at Hima in Kasese District, close to the limestone-producing areas of western Uganda. Hima also owns the Dura limestone quarry in Kamwenge District, which supplies a key raw material for cement manufacturing. The quarry has been described as having sufficient reserves to support existing production levels until approximately 2036, although the actual duration depends on extraction rates and future capacity. Hima Cement broadened its national footprint through construction of a second factory in Tororo. The facility, located on the Tororo-Mbale-Soroti road, opened in 2018 after an investment reported at US$40 million. Its stated annual capacity was approximately 850,000 tonnes, bringing combined capacity at the Hima and Tororo plants to roughly 1.7 million tonnes at that time. Other descriptions reported total potential output of about 1.9 million tonnes. The two-plant network enabled the company to serve western, central and eastern Ugandan markets more efficiently and to supply neighboring countries. By 2019, Hima Cement was described as Uganda's second-largest cement manufacturer. Estimated annual production was about 2 million metric tonnes, equivalent to approximately 28 percent of national output in the cited period. Around 20 percent of its production was exported to South Sudan, the Democratic Republic of the Congo and Rwanda. The company maintained a corporate office in Kampala and warehouses in Kampala's industrial area and in Tororo. Infrastructure supply became an important part of Hima Cement's commercial activity. In July 2017, the company signed a memorandum of understanding with China Communications Construction Company to supply 120,000 metric tonnes for several public works projects. The commitments covered the Entebbe International Airport expansion, the Mubende-Kakumiro-Kagadi Road and the Tororo-Mbale-Soroti Road. Hima Cement was also reported to have been the largest cement supplier for the Karuma Hydroelectric Power Station, a 600-megawatt project constructed between 2013 and 2020. The company's ownership changed in 2024. In November 2023, Sarrai Group agreed to buy Holcim's 70 percent interest for US$84 million, while Rwimi Holdings agreed to acquire the remaining 30 percent from Cementia Holding AG for a reported US$36 million. The deals required approvals from regulators in Uganda, Kenya, Switzerland and COMESA. Completion took place on 5 March 2024, after which Sarrai Group became the majority owner and Rwimi Holdings retained a minority interest. In parallel with the ownership transition, Hima Cement entered a waste-utilization partnership with Coca-Cola Beverages Uganda. Announced in November 2023 for an initial three-year period, the arrangement provides for plastic recovered from used beverage bottles to be used in heating Hima Cement's kilns. The initiative reflects the use of cement kilns as an industrial route for energy recovery while supporting collection of post-consumer plastic waste. Hima Cement continues to operate as an active Ugandan cement producer with domestic and regional market exposure.

• 2024

  Ownership transaction closes

  [1]Hima Cement Limiteden.wikipedia.org

  The acquisition completed on 5 March after regulatory approvals.

• 2023

  Ownership sale is agreed

  [1]Hima Cement Limiteden.wikipedia.org

  Sarrai Group and Rwimi Holdings signed agreements to acquire the company's two ownership blocks from Holcim and Cementia Holding AG.

• 2018

  Tororo factory comes online

  [1]Hima Cement Limiteden.wikipedia.org

  The new Tororo plant began production with reported annual capacity of approximately 850,000 tonnes.

• 2017

  Infrastructure supply memorandum is signed

  [1]Hima Cement Limiteden.wikipedia.org

  Hima Cement agreed to supply 120,000 metric tonnes for airport and road projects.

• 2011

  Capacity reaches approximately 850,000 tonnes

  [1]Hima Cement Limiteden.wikipedia.org

  Reported annual production capacity had grown substantially from the level associated with the business after privatization.

• 1999

  Lafarge acquires Hima Cement

  [1]Hima Cement Limiteden.wikipedia.org

  Lafarge acquired all shares in Hima Cement and rebranded the business as Hima Cement Limited.

• 1994

  Uganda Cement Industries is privatized and divided

  [1]Hima Cement Limiteden.wikipedia.org

  The former state cement enterprise was split into Hima Cement and Tororo Cement during privatization.

A large Ugandan cement and construction-materials supplier combining domestic manufacturing, infrastructure-project supply and regional exports.

• Construction materials

  Cement

  Hima Cement's core offering is cement for general construction, housing, commercial building, civil engineering and infrastructure work. The supplied references identify cement manufacturing as the company's principal activity and describe its use in major Ugandan transport, airport and hydropower projects. Specific current product names and technical grades are not established in the supplied material.

• Cement manufacturing input and intermediate product

  Clinker

  Clinker is the kiln-produced intermediate from which cement is milled. Hima Cement's integrated manufacturing operations include limestone quarrying and kiln processing, making clinker part of the company's typical industrial output or production chain. The supplied references do not specify separate branded clinker products or customer-facing grades.

• 2023Plastic waste kiln-fuel collaboration

  Uganda

  Hima Cement and Coca-Cola Beverages Uganda signed a three-year memorandum to collect plastic from used beverage bottles and transfer it to Hima Cement for use in heating cement kilns.

  Outcome. The agreement established a planned collaboration combining post-consumer plastic collection with energy recovery in cement manufacturing; the supplied material does not report quantified results.

  Source

• 2023

  Sale of Holcim and Cementia ownership interestsM&A

  Background

  Holcim held 70 percent of Hima Cement and Cementia Holding AG held the remaining 30 percent before the proposed transaction.

  Action taken

  Sarrai Group agreed to acquire the 70 percent stake for US$84 million, while Rwimi Holdings agreed to acquire the 30 percent stake for a reported US$36 million, subject to regulatory approvals.

  Aftermath

  The transaction closed on 5 March 2024, resulting in Sarrai Group becoming the majority owner and Rwimi Holdings retaining a minority interest.

  Reported transaction consideration. US$120 million combined reported consideration (2023-2024)

  Source

• 2018

  Expansion through the Tororo factoryGeneration change

  Background

  Hima Cement needed additional eastern-Uganda capacity and a broader geographic manufacturing network.

  Action taken

  The company opened a new factory on the Tororo-Mbale-Soroti road, with reported annual capacity of approximately 850,000 tonnes.

  Aftermath

  The plant increased national capacity and helped support domestic distribution and regional exports.

  Factory investment. US$40 million (2018)

  Source

• 2017

  Commitment to supply major Ugandan infrastructure projectsStrategy

  Background

  Hima Cement sought to expand its role as a domestic infrastructure-materials supplier through an agreement with China Communications Construction Company.

  Action taken

  The company signed a memorandum covering 120,000 metric tonnes for the Entebbe International Airport expansion and three road projects.

  Aftermath

  The agreement positioned Hima Cement as a supplier to several nationally significant construction projects.

  Source

1. 1Hima Cement Limiteden.wikipedia.org