EVEREADY EA LTD | ::New Equipment::.

EVEREADY COMMISSIONS NEW EQUIPMENT

EVEREADY East Africa Limited (EEAL) today commissioned new battery manufacturing equipment at its Nakuru plant.

The installation of the new paste area cost over Sh.24 million. The project scope was to design and install a paste manufacturing equipment capable of meeting the current and future technological demands of battery manufacture.

Speaking in Nakuru during the official launch of this process equipment, EEAL Managing Director Steven G. Smith said that the installation of the new paste area was just one part of the company’s long-term strategy to manufacture quality, safe and environmentally friendly products. During the past three years Eveready has spent over KShs 120 million on equipment and facility upgrades. Other equipment new to its Nakuru operation include zinc can manufacturing equipment, conveyors, vertical boxing equipment and a new higher capacity main electrical transformer. Eveready has also designed and built a new automatic sleeving equipment which is part of packaging equipment upgrades planned for Nakuru in 2010.

He also said that the installation of the new paste manufacturing facility was in line with the company’s business realignment strategy, which includes product diversification, aimed at strengthening the company’s financial base.

Mr. Smith also reminded the Government of its responsibility to provide a fair business environment for companies like Eveready who have invested in Kenya and employ hundreds of Kenyans. A “Sub-standard Battery List” which has been published by Kenya Bureau of Standards (KEBS) for approximately 7 years which bans specific battery brands from Kenya has not been enforced; as currently banned dry cell batteries account for approximately 2 million batteries sold every month in Kenya. He also asked the Government to show proof that all “D-regular” dry cell batteries currently sold in Kenya meet the 10 Ohm Radio Test of 18 hours service level from their market surveillance programs. He also expressed concerns about the continued under-valuation of some batteries in order to evade taxes by asking the Kenya Revenue Authority (KRA) to closely monitor the declared value of imported “D” batteries. Eveready only ask that existing laws and regulations be enforced.

Mr. Smith also commented that the new facility provides EEAL with flexibility in manufacturing of paste for its Le Clanche battery technology with improved operational safety and improved energy efficiency. The new paste area will also reduce its cost of maintenance and will allow Eveready to continue to its long standing commitment for sustainable products that reduce any environmental impact they may have.

He also commented on its more advanced Zinc Chloride battery production equipment and said that the equipment is ready to meet consumer battery needs as they purchase devices which requires batteries with higher energy density.

Mr. Smith closed his comment with a thank you to the local contractors and to Eveready’s employees for the excellent work in meeting the quality and budget requirements for this project.