Ruliba Clays eyes stronger performance after acquisition by RSSB

Ruliba Clays is targeting stronger business performance after more than doubling its installed production capacity, as the company enters a new phase under full ownership of the Rwanda Social Security Board (RSSB). The clay construction materials manufacturer has increased its annual installed production capacity from about 61,000 tonnes to 126,000 tonnes following the completion of a new plant in Rugende, Rusororo Sector- Gasabo District. ALSO READ: RSSB acquires Inyange Industries, Ruliba Clays However, the company is yet to fully utilise the expanded capacity, with current production at about 61 per cent of installed capacity, according to Managing Director Emmanuel Rugambwa. Rugambwa said management’s focus is now shifting from investment in infrastructure to turning the expanded capacity into stronger commercial performance. “With RSSB acquiring 100 per cent ownership, it means we now have an investor who is looking at the business with a long-term view and has demonstrated the willingness to support the business to achieve its goals,” he said. The new plant has more than doubled the company’s production capacity, but Rugambwa said the investment will only deliver its full value if the company improves capacity utilisation and strengthens its operations. “What is left for us now is to make sure that we transform the investment that has been made into a business that is highly performing,” he said. Rugambwa said the company has set an ambitious growth target that will require stronger commercial discipline and improvements across its operations. “The immediate priorities include ensuring consistent product availability, keeping the plant operating reliably, strengthening commercial capabilities and improving the supply chain.” Rugambwa said Ruliba is currently operating at about 61 per cent of its installed capacity, but management wants to reach full capacity. He said higher capacity utilisation would allow the company to spread its fixed costs across a larger volume of production, creating room for lower prices. “Once we are able to achieve that, we are now able to spread our cost over the fixed cost that reaches the customers. And ultimately that translates into a reduction in prices,” he said. However, he said the immediate priority is not simply to lower prices but to ensure customers can reliably find Ruliba products on the market. ALSO READ: RSSB boss breaks down Inyange, Ruliba, BK General Insurance deals The company is working to improve the reliability of its production system and ensure that the increased capacity translates into consistent supply. Rugambwa said the new plant is more than 80 per cent automated, which should help improve product quality and production efficiency while reducing costs. Ruliba currently employs about 545 people, including electrical, mechanical and mining engineers, as well as workers with experience in clay production, manufacturing and mining. Rugambwa said the company is reviewing whether it has the right skills to support its growth plans. “The board has commissioned an independent expert to assess the production process and identify areas that require improvement, including the skills needed at different levels of the operation. The findings will inform training and recruitment as the company seeks to improve the performance of its workforce,” he said. “Our focus as management is to make sure that we constantly train people, to make sure that they're skilled and can, they're not only skilled, but they're also accountable and can help deliver the agenda that we have set out,” Rugambwa said. He said the performance of the new plant will depend on more than its technology, with management also required to coordinate the wider production system. This includes securing a reliable supply of raw materials, controlling energy use, maintaining machinery and ensuring the workforce is properly managed. Beyond the domestic market, Ruliba has ambitions to expand regionally, but Rugambwa said the company will first focus on meeting demand in the local market. “Our ambition is really to grow regional, but our focus at the moment is the Rwanda market. We need to be able to supply the Rwanda market first,” he said. He said reaching the right production scale locally would give the company a stronger foundation for regional expansion. Rugambwa added that Ruliba’s products are already known in the region for their quality, but the company does not want to expand before addressing its production fundamentals. “The strategy is also intended to reduce customers’ reliance on imported products by increasing domestic supply. Once Ruliba can supply the local market adequately and achieve higher utilisation of its plant, the company will be in a better position to compete in regional markets.”

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Ruliba Clays eyes stronger performance after acquisition by RSSB