TANZANIA: ´CHEAP´ CEMENT IMPORTS HURT DOMESTIC PRODUCERS

LOW priced imported cement has continued to bedevil locally produced products, despite the rise in demand.

Tanga Cement Company Limited (TCCL), has, however, reported that it has managed to survive despite the

odds due to good quality of its products and customer care.

According to the audited results for the year ended December, last year, demand for cement products for both

the local and export market remained high.

But the unfolding scenario was captured by cement importers. “Consequently, sales volumes as well as the

selling prices achieved by local firms remained lower than expected compared to the preceding period of the

year ended December 2012,” Tanga Cement which trades at the Dar es Salaam Stock Exchange (DSE) as

Simba said in the statement.

TCCL net profit for the year dropped to 32.45bn/- compared to 34.49bn/- registered in the period ending 2012.

Similarly, total revenues declined to 182.78bn/- in the period under review compared to 195.6bn/- of the

preceding year.

However, a major milestone achieved during the year was acquisition of an additional 40 per cent shareholding in the CDEAL, giving the company full ownership of the sales and distribution arm of the business ensuring improved integration and strategic alignment with TCCL.

Improving operational efficiencies and containing production costs were a major focus in the year 2013, with

significant achievement noted during the second half of the year.

For example, the cost of sales as one of the cost items, the company managed to pull down to 120bn/-

compared to about 129.8bn/- of the year 2012.

Also, during the period under review, the company secured supply of coal from local sources and entered into

negotiation for long term purchase agreement for clinker, thus adding to cost reduction efforts.

Furthermore, with the completion of the new kiln, the company is expected to enhance its competitiveness

advantage by increasing clinker production capacity to 750,000 tonnes per annum, which is more than doubling

the present capacity