Kenya's Athi River Mining plans to spin off its fertilizer business to focus on increasing cement sales five-fold over the next five years.

The firm said it would get more than half its revenue from outside Kenya by then compared with only 20% at the moment. It is the third largest cement company in the country.

Athi River Mining plans to increase cement sales to 1.75 million tonnes a year in 2015 from an estimated 360,000 tonnes in 2010. It projects turnover will grow from $64 million this year to $250 million by then.

The expansion of the cement business in the region meant Athi River could not give sufficient attention to its fertilizer unit. Talks with private equity companies are now underway on providing $20-25-million for a 30-50% stake in the fertilizer subsidiary, which would then be listed separately in three to five years.

The money would build a new fertilizer plant, allowing annual production to increase from 15,000 to 150,000 tonnes.

Source: Reuters