A company based in Thika is set to receive nearly SH. 1 billion funding from the World Bank Group’s International Finance Corporation (IFC). Blue Nile Rolling Mills will receive Sh. 862 million.
The loan is part of the company’s bid to raise Sh. 1.5 billion for restructuring and development of its galvanized wire plant. Blue Nile Rolling Mills Limited currently manufactures the Kifaru brand of steel products.
“The group is looking to raise Sh. 1.5 billion to fund a backward integration programme aimed at setting up 26,580 tonnes per annum and Kenya’s first galvanisation wire manufacturing plant in Nairobi, Kenya. The group is therefore seeking Sh. 862 million IFC loan to Blue Nile Rolling Mills Limited. A new operations division will be created for galvanisation wire manufacturing plant,” IFC said in its investment disclosures. “In 2016, the company began exporting its products to Tanzania, Uganda, Rwanda, Burundi and the Democratic Republic of Congo. Currently, the BNRML and BNWPL are run as independent companies. However, they would be merged and consolidated going forward.”
The company launched operations in Kenya in 2006. This was after acquiring a steel wire product manufacturing facility in Kikuyu, Kiambu County. The company, however, produces its steel and wire products at a factory in Thika.
Its Thika facility has a capacity to produce 100,000 metric tonnes of steel products and 15,700 metric tonnes of wire products.