A huge number employees of Portland cement are expected to lose their jobs by the end of next year. This is according to the Portland Chairperson, William lay.
The cement manufacturer East African Portland Cement (EAPCC) announced its plans to retrench more than two thirds of its staff in a restructuring plan which will cost the State-owned company about Sh2 billion.
Giving the announcement, William indicated that 1,000 employees, out of 1,500 Portland Cement staff will lose their jobs as it downsizes starting next year over financial losses
“We are overly overstaffed with our employee numbers at over 1,500 and close to 2,000. By benchmarking with the rest of the industry we need only 500,” said Bill Lay, Portland’s chairman.
Portland reported an operational loss of Sh1.6 billion for the year ended June with staff costs representing 31 per cent of its revenue at Sh2.7 billion.
The government holds a 25.3 per cent stake in Portland while the National Social Security Fund has 27 per cent. LafargeHolcim, which also has a stake in Portland’s rival Bamburi Cement, owns a 41.7 per cent stake.
Famous but financially poor
EAPCC chairman William Lay said the country’s third largest cement maker by market share is “asset rich but cash poor”.
“We don’t need a bailout by the government. Instead we are presenting a solution which requires minimum intervention that will turnaround the company and position it for growth,” Lay said in Nairobi.
Lay noted that the firm has recommended a structured financing programme to address the short to long-term requirements, including growth and expansion.
“This is a three-pronged financial injection programme which will include debt restructuring and stabilising operations, inviting financial investors and extracting value from idle assets by closely working with the government,” Lay said.