Chinese CRBC to procure steel from Kenyan local mills

BEIJING (Scrap Monster): Chinese construction company-China Road and Bridge Corporation (CRBC), the main contractor for construction of Kenyan Standard Guage Railway (SGR) has announced that it plans to buy steel in bulk quantities from Kenyan local steel mills. This is the first time that CRBC has decided to procure steel in such large quantities since the work on new railway began.

The CRBC official press release noted that the steel products supplied by domestic mills in the country were tested in the SGR Project Center Lab and were found to have met the project requirement. The company plans to purchase 5,250 tonnes of steel products worth nearly $4 million from Kenyan manufacturers. The locally procured steel will be used towards construction of culverts and foundation for bridges. Earlier, CRBC had purchased small quantities of steel locally.

CRBC will select one or more suppliers from the pre-qualified list of suppliers who have submitted their bids. Sources indicate that five Kenyan manufacturers-Apex Steel Mill Corporation, Steel Makers Limited, Devki Steel Mills, Prime Steel Limited and Tononoka Steel have presented their bids. Quotations will be evaluated and supply contracts will be signed with one or more suppliers, the company stated.

The first phase of the $38 million SGR project is due to begin later this year, which will result in construction of high speed railway line between Mombasa and Nairobi. The estimated end-date of the project is 2017. During the second phase, the railway line will be extended from Nairobi to Malama and Kisumu. The project is expected to provide big boost to domestic steel industry and generate hundreds of local jobs.

Also, CRBC plans to procure more steel towards end-2015.