Devki opens Sh30bn raw steel factory in Kenya

Kenya's Devkistil Mills Limited has made a historic stride in Africa's industrial landscape with the inauguration of a $30 billion raw steel production factory. The factory, touted as one of the largest in the continent, boasts a staggering capacity to manufacture approximately 500,000 tons of raw steel yearly. CNBC Africa's Julius Vizimongu had an exclusive interview with Narendra Raval, the distinguished chairman of the company, shedding light on this groundbreaking industry development. In a bid to revolutionize the steel sector in the region, Devki aims to fill the void of locally produced raw materials. It's a departure from the norm where Kenya and East Africa heavily relied on imports from South Africa, China, and Europe. With an eye on meeting the significant demand for steel billets and wire rods, Devki's cutting-edge facility is strategically positioned to cater to the needs of the local market. One of the paramount facets of the plant is its eco-friendly approach. Raval outlines the plant's eco-conscious initiatives, citing an impressive 80% green production capability. By leveraging locally sourced resources and implementing innovative technology, Devki has managed to minimize its carbon footprint significantly. In a bid to enhance its sustainability credentials, the company is also set to roll out a wind power plant designed to generate 65 megawatts of clean energy by 2024. The chairman emphasized the importance of shielding local industries from external fluctuations, pointing out that self-sufficiency fosters economic stability and mitigates dependency on imported goods. Raval articulated a vision of a self-reliant East Africa, where industries thrive on indigenous resources, creating a robust foundation for growth and resilience. Riding on the wave of innovation, Devki has integrated advanced technology into its production process. Raval elucidated on the operational framework of the factory, highlighting a state-of-the-art infrastructure that utilizes a combination of technologies such as Direct Reduced Iron (DRI), blast furnace, and electric arc furnace. With an eye on energy efficiency, the facility incorporates a waste heat recovery system and a 55-megawatt power plant, ensuring self-sufficiency in energy production. The strategic positioning of the factory enables Devki to not only service the Kenyan market but also cater to the broader East and Central African regions. With plans to tap into markets like South Sudan and Ethiopia, the company is poised to make a substantial impact on the steel industry landscape in the region. Raval underscored the significance of governmental support in nurturing local industries, emphasizing the pivotal role of policy frameworks in fostering economic growth and job creation. Drawing lessons from global disruptions like the Russia-Ukraine conflict, he advocated for countries to bolster domestic production capabilities to shield themselves from external market volatility. In the face of fluctuating steel prices globally, Devki remains resolute in its mission to provide affordable steel solutions to the region. The company's commitment to local sourcing and efficient production processes positions it as a key player in driving down costs and promoting economic resilience. As Devki Steel Mills Limited emerges as a frontrunner in Africa's steel sector, its $30 billion factory stands as a testament to the power of innovation, sustainability, and strategic vision. With a blend of cutting-edge technology, eco-friendly practices, and a staunch commitment to self-sufficiency, Devki is poised to reshape the narrative of steel production in the region.