(Yicai Global) July 18 -- Keda Industrial Group said it will invest USD67.1 million to expand its ceramic products production in two African nations as the Chinese company seeks to fill local supply gaps.

Keda will spend USD42.5 million to expand floor tile production in Ghana and USD24.5 million to build a new sanitary ware plant in Kenya, the Foshan-based company, which also supplies building materials and machinery, said in a statement late on July 16.

Keda has five production lines for construction-related ceramics in operation in Ghana, with total daily production capacity of 150,000 sqm, it said. But due to strong demand, products have been in short supply. Demand for ceramic tiles in Ghana and 14 surrounding countries is expected to continue growing over the next four years.

The firm’s new Ghana plant, which will be able to make 16.8 million square meters of small floor tiles annually, is scheduled to be up and running by the first half of next year. The Kenya factory, designed to turn out 1.32 million products a year, is set to start production by the second half of 2023, Keda said.

The company said the Kenya plant will help it establish a first-mover advantage, seizing the local market opportunity and forming business collaborations.

Keda Industrial’s shares [SHA: 600499] closed down 1.9 percent today at CNY20.81 (USD3.10) each.

Editor: Peter Thomas