SGR Developer to Buy Sh330 Million Kenyan Steel

Posted on : Tuesday, 3rd November 2015

China Road and Bridge Corporation has said it will buy some Sh330 million worth of steel from Kenyan manufacturers for constructing the Standard Gauge Railway line.

CRBC yesterday said it has already received bids for the supply of the steel from six manufacturers.

The planned purchase of more than 5,000 tonnes of steel bars will be the first large scale purchase since construction of the Sh327 billion project commenced two two years ago.

The firm has previously procured steel from different local firms, but in small consignments.

CRBC expects the bulk supply to meet the increased demand for steel on the project for the construction of culverts, bridges and foundations for about three months.

"We have tested the products of the suppliers who are participating in this process in our SGR project center lab and we are satisfied that they meet the requirements for the project," said Zhang Yongbo, CRBC's procurement manager for the SGR project in a statement.

A suitable supplier will be selected based on among others capacity to have a stable production regime, sales performance, quality control and pricing.

Shortlisted firms include Apex Steel Mill, Steel Makers, Devki Steel Mills, Prime Steel and Tononoka Steel.

"Having local firms supply steel to the SGR project is a major boost for the Kenyan steel industry. It is evidence that our production standards are at par with global standards," said Bharat Rao of Apex Steel.