Tanga Cement Company Limited (TCCL) has signed an agreement with Tanzania Electric Supply Company (TANESCO) to ensure reliable power supplies to sustain efficient production levels.
TCCL’s Managing Director, Reinhardt Swart told East African Business Week in Dar es Salaam last week the agreement would assure Tanga Cement receives adequate and reliable supply of electricity and ancillary services on the 132/33Kv line.
“This agreement comes at a time when the cement manufacturer is expanding the capacity of its operation, whereby a new kiln line is being constructed at its plant in Tanga,” Swart said.
TANESCO deputy Managing Director (Investment) Decklan Mhaiki said the deal would improve Tanga Cement production capacity.
“Tanga Cement is one of our giant customers. Taking into consideration their status, we have agreed to supply power to their sub-station in a move that will foster their production capacity,” he said.
According Swart, the company’s expansion is expected to double the company’s electricity demand to 40MVA, which TANESCO has agreed to supply.
Swart said they are currently eyeing the East African market by exporting ists flag brand, Simba Cement to Uganda. TCCL is also exporting its product to the Democratic Republic Congo (DRC), Kenya and Rwanda but they are looking forward to selling in Kampala.
“We are still studying the market competition in Uganda although it’s far but we will export our product to Kampala,” Swart said.
Swart said the agreement also provides guidelines on communicating power outages between the two parties so as to minimize production disruptions at the cement factory.
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