The Kenyan state run manufacturer, Numerical Machining Complex is planning to build an oil ore plant that will produce steel from scrap metal.

The plant will be built at Athi River, 26 kilometers southwest of the capital, Nairobi.

According to the statement, President Mwai Kibaki, was touring the smelter on Monday where he directed the national treasury to provide up to USD 55 million to finance the expansion of the industry.

He said “I, therefore, direct that you work with the Ministry of Finance to get a viable option for financing this project.”

The Numerical Machine Complex manufactures spare parts for cars, water pumps, lathe machines, train break pads, gear boxes and trailer under carriages.

According to Kibaki, if the plant expands its profile to include using metal scrap, it would create more jobs for Kenyans as well as bring in the country a lot of foreign exchange from exports and will save the money that has been importing these steel products. The firm currently supplies the public sector with machine parts and will start competing for business in the private sector once the capacity is enhanced. With increased capacity, the plant is expected to bring down the cost of machine parts for industries and vehicles.

(Filed by Matsiko Mike SteelGuru Uganda correspondent)