Athi River Mining profit up 14 p.c. on exports

• 2008 pre-tax profit, turnover up
• Hopes to maintain and improve performance in 2009
• Cement production capacity expansion ready in 2010

Kenya's Athi River Mining, the country's third-biggest cement maker, said on Tuesday 2008 pre-tax profit rose 14 per cent helped by increased exports to neighbouring countries.

Pretax profit rose to Sh705 million from Sh620 million the previous year, as turnover rose 19 per cent to Sh4.6 billion.

"Despite the difficulties in Kenya, we increased our turnover. We are confident that we will be able to maintain and improve our performance in 2009," Surendra Bhatia, ARM's deputy managing director, told Reuters.

Kenya, east Africa's largest economy, was hit by a deadly post-election crisis in the first quarter of 2008.

Earnings per share rose 19 per cent to Sh5.08, the firm said.

ARM also manufactures fertiliser and other industrial goods and chemicals.

The company is building a $120 million, 4,000 tonnes-a-day cement plant in Tanga, northern Tanzania.

The firm hopes that plant, which is due to be completed late next year, will help it meet booming demand for cement from across the region.

Bhatia said ARM is also expanding its cement production capacity in Kenya to 650,000 tonnes annually.

He said the new capacity will be commissioned in early 2010.

Some 6,000 individuals own 25 per cent of ARM through the Nairobi bourse, while France's Lafarge owns 14 per cent. The founding Paunrana family owns about 50 per cent.