Displaying items by tag: Tanzania
Nigeria: Dangote Cement’s pre-tax profit has fallen by 10.9% year-on-year to US$466m in the first nine months of 2016 from US$523m in the same period in 2015. Its earnings before interest, taxation, depreciation and amortisation (EBTIDA) fell by 16.3% to US$559m from US$667m. However, sales revenue rose by 20.9% to US$1.38bn from US$1.14bn. It blamed the drop in profitability on falling prices in Nigeria, negative currency effects and on rising fuel and power costs.
“Nigeria has achieved record volume growth and our non-Nigerian operations are performing well across Africa. Our switch to coal in Nigeria will have an immediate impact on margins now that we have abandoned the use of low pour fuel oil (LPFO), improving fuel security and reducing the need for foreign currency. Furthermore, our new pricing will offset the impact on costs of the devalued Naira,” said the chief executive officer, Onne van der Weijde. He added his company’s strong performance in sales had been hit by poor economies in the countries it operates in and by heavy seasonal rains in West Africa.
The producer reported that its sales volumes of cement sold grew by 28.1% to 11.9Mt in Nigeria and by 72.9% to 6.5Mt elsewhere in Africa. Sales outside of Nigeria were bolstered by production ramp-up in Ethiopia and Zambia, new operations in Tanzania and improved sales in Ghana. Plants in the Republic of Congo and Sierra Leone are due to become operational in mid-November 2016.
Tanzania: Tanga Cement has launched its Mkomboz Cement brand. The 32.5N cement class is an all-purpose cement aimed to meet the construction needs of Tanzanians in infrastructure and residential housing in particular.
“Tanga Cement’s new cement brand is yet another step by the company to approach Tanzanians with an innovative product that is affordable to the people yet with an assured high quality product and technological superiority that has been the trademark of Tanga Cement”, said Tanga’s National Sales Manager Leslie Massawe.
Tanzania: Charles Mwijage, the Minister for Industry, Trade and Investment, has advised local cement producers to complain to the government regarding imports of cement and a ban on imported coal. Mwijage made the comments at the inauguration of Tanga Cement’s second clinker production line, according to the Tanzania Daily News newspaper.
"We ask the government to either stop the imports or at least impose higher tariffs on imported clinkers. We are also pleading with the government to ensure clinkers on transit reach their destinations. This will remove unfair competition in the market," said Reinhardt Swart, the managing director of Tanga Cement.
The cement producer has complained to the government previously about the same issues. He added that the some of the cheap products were clinker on transit that are diverted to the local market and then sold cheaply because they are not taxed. In addition the government ban on coal imports has raised the company’s energy costs. Swart said that the company is also appealing to the government to secure more reliable electricity supplies.
Tanzania: Tanga Cement has seen its net operating profit rise by 55% in the first six months of 2016, despite intense competition from other cement companies and cheap imported products from abroad. The company more than doubled its clinker production, from 0.45Mt to 1.23Mt, after commissioning the second clinker line at its plant.
Lawrence Masha, Chairman of the Board, said, "In this year, the business is focusing on profitability, driven by operational efficiency and overall business effectiveness. This will enable the company to absorb the increase in production related costs, as far as possible, in order to remain competitive in challenging market conditions.”
Masha said the cement sector is witnessing fierce competition due to the new market entrants. He said imports of cheap cement from companies that enjoy tax benefits in their home countries further erode the local market and are causing significant injury to local producers.
Tanzania: Tanga Cement plans to inaugurate its second clinker production line in mid-August 2016. The 775,000t/yr line will increase production capacity at the cement plant to 1.25Mt/yr. The company has spent US$125m on the upgrade. Minister for Industry, Trade and Investment Charles Mwijage is expected to attend the ceremony according to the Tanzania Daily News newspaper.
Tanzania: Tanga Cement plans to build a new clinker kiln that will increase its clinker production capacity to 1.2Mt/yr from 0.5Mt/yr. The upgrade is expected to cost US$135m, according to East African Business Week.
“This additional capacity is expected to satisfy the consistent demand for cement from both the Tanzanian market and markets beyond the country's borders into the immediate future,” said Lawrence Masha, Tanga’s chairman of the board of directors, at the company’s annual general meeting.
Tanzania: Tanga Cement is in discussions with the Tanzanian government to increase its use of the Usambara Railway to transport its products to Arusha, according to Makame Mbarawa, the Minister for Works, Transport and Communication. Mbarawa made the comments to local press on a visit to Tanzania Railway facilities and a cement plant in Maweni.
Tanga Cement has pledged to use the railway line to transport 35,000t/month. The move is intended to minimise damage to the country’s road network. In the 2014 – 2015 year Tanzania Railways transported 44,000t of cement. From July to December 2015 the railway transported 24,960t of cement, according to Masanja Kadogosa, the Deputy Director General of Tanzania Railways.
Tanzania: The Court of Appeal has dismissed a disputed tax charge for US$371,000 against Tanga Cement as ‘incompetent.’ Counsel for Tanzania Revenue Authority (TRA), Felix Haule, conceded that the appeal was indeed incompetent because the decree was not signed by members of the Tax Appeals Tribunal, according to local media. Before rejecting the two appeals, the Justices of the appeals court were informed that the respondents into the matters have lodged preliminary objections to challenge their competence for having offended the rules under the Tax Revenue Appeals Tribunal. The case was one of three worth over US$1.3bn that were also dismissed as part of a series of corporate tax appeal cases.
Tanzania: Dangote Cement has signed two agreements that will enable its US$600m cement plant in Tanzania to generate 150MW from coal.
One agreement is with Tancoal. Dangote Cement has also signed a coal prospecting licence for a site in Mbinga. However, the plant will first run on diesel until it is able to generate its own electricity from coal.
The deals ends a year-long dispute between the government and the cement plant after Tanesco failed to provide electricity. The plant was considering importing coal from South Africa, which was a cheaper option than buying it from the area.
The cement plant is expected to reduce cement prices by 50% once production commences in early 2016. It will take advantage of the growing construction industry, which contributes 12.5% to the country's GDP. It will offer more than 1500 direct jobs and 9000 indirectly.
Tanzania: Mbeya Cement, a LafargeHolcim subsidiary, has launched a higher strength cement and stated that its production capacity will triple to 1.1Mt/yr at the end of October 2015. The company, which is 35% locally-owned, said that the cement 'Tembo Supaset 42.5' is used by civil contractors and pre-casters.
Lafarge Tanzania's CEO Catherine Langreney said that the product specifically addresses the needs for block making, concrete mix, mega-structures and high visibility infrastructure projects like bridges, roads and stadiums. "This brand is the result of almost one year of careful research and development by our cement technical experts," said Langreney. "Supaset CEM II is a specially-formulated Portland composite cement that is engineered to meet the fast-setting requirements of block makers."
The introduction of Supaset is likely to assist Mbeya Cement to increase its market share in the block making segment, improve customer satisfaction with Lafarge brands and reinforce its position as a leader in innovation within the Tanzanian construction industry. Langreney said that, before the end of 2015, Mbeya Cement will launch two new innovative products to meet demand of fast growing construction industry and the economy at large.
To cater for future demand, Mbeya Cement plans to start a new vertical grinding production plant, the first in sub-Sahara Africa, at the end of October 2015. "The new 700,000Mt/yr plant will elevates our capacity to 1.1Mt/yr," said Langreney.