(Yicai Global) March 6 -- Keda Industrial Group is planning to invest USD86.8 million to build an architectural glass plant in Tanzania to enlarge the variety of such building material in the African market and increase its market share.

Keda Industrial will set up a local subsidiary or a joint venture with a local partner to build the plant, which is expected to have an annual production capacity of 600 tons of architectural glass, the Foshan-based company announced late on March 3. Construction will likely be completed in 12 months, it added.

The demand for building materials in the African market has increased in recent years thanks to stable economic growth, increasing population, fast real estate development, and other factors.

Considering the lack of glass production capacity in Tanzania and neighboring countries, Keda Industrial decided to seize the opportunity and build a glass factory, the firm said, adding that the products will be delivered to clients in Tanzania and also exported to neighboring nations, including Kenya, Uganda, and Zambia.

Keda Industrial will raise USD52 million in loans from commercial banks or other financial institutions to fund the project, it noted.

The company entered the African construction material market in 2016. It has more than 14 ceramic products manufacturing plants in operation and eight others in construction in five African countries, including Tanzania, according to Keda Industrial.

Shares of Keda Industrial [SHA: 600499] closed the day up 0.19 percent at CNY15.81 (USD2.29).

Editor: Futura Costaglione