6/16/08

Paint firm finds market in Rwanda

Story by JOSEPH BONYO
Publication Date: 6/17/2008

Paint manufacturer Crown Berger will begin operations at its new Sh31.5 million plant in Rwanda in the next three months.

According to the firm's chief executive, production at the plant is set to formally start in August after satisfying all the required procedures by the Rwandan Investment Authority (RIA).

Delivery

"The plant that we have set up in Rwanda will improve product delivery to the Rwanda and Burundi markets which have continued to grow," said Mr Rao.

The factory will be the firm's second establishment in the region. Last year it established Regal Paints in Uganda to supply its market there and to the Southern Sudan.

The plant started off as a distributor but has since started paint production under the Regal brand name.

"As opposed to the Ugandan model which started as a distribution plant, we are going into full manufacturing in Rwanda and shall trade under our brand name of Crown Berger," said Mr Rao.

Speaking to the Nation after the company's 51st Annual General Meeting at a Nairobi hotel on Monday, Mr Rao said that the recent increase in import duty on resin would not affect the bulk of their products.

Finance minister Amos Kimunya had on Thursday while delivering the 2008/09 budget proposed to impose a 10 per cent duty on epoxide resin used in paint manufacturing.

Import

"The duty may also not be adversely affected us we import this kind of resin from Egypt which is Kenya's trade partner under the Comesa arrangements," he said.

There had been fears among players in the industry that the duty proposed would further increase product prices as manufacturers passed on the extra cost to consumers.

During the meeting, shareholders approved a Sh1 dividend payment for every ordinary share held.

The meeting also approved the day for the closure of the register of members as being on Tuesday.






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Jean-Louis Kayitenkore
Procurement Consultant
Gsm: +250-08470205
Home: +250-55104140
P.O. Box 3867
Kigali-Rwanda
East Africa
Blog: http://www.cepgl.blogspot.com
Skype ID : Kayisa66

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