Injection on new capital, disposal of assets and planned lay off are some of the proposals made in a new turnaround plan for East African Portland cement.
The strategy says the company will require 15 billion shillings to boost productivity and market share.
EAPCC has planned a make or break meeting with investors next week, which will determine the future of the loss-making cement maker.
On Thursday, the company declared all positions vacant giving staff two months to re-apply the jobs at a lower salary.
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The turnaround strategy seen by channel one outlines ten points that needs to be implemented for the loss making East African Portland Cement to return to profitability.
Among the proposals to trim the work-force from 600 to 450, dispose-off some of the company’s immovable assets like land and decommissioned machinery as well as talking to shareholders for equity boost.
Already the company has issued a notice to workers, giving workers 60 days to re-apply for their positions.
According to Managing Director Stephen Nthei, the company is not eyeing nationalization to stay afloat. Currently the company produces about 350 thousand metric tons of the cement from a high of 800 thousand metric tons a decade ago.
The cabinet has given the company the go ahead to sell part of its 14,000 acres of land in Machakos County.
In the last 3 years the Nairobi listed EAPCC has sacked more than 600 people in a bid to tame its wage bill. The company is grappling with wage bill that stands at around 1.2 billion shillings annually.
