Displaying items by tag: Tanzania
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.
Tanzania: With its cement plants across Africa undergoing expansion and new investments in Asia, Dangote Cement has unveiled plans to attain a production capacity of 81Mt/yr before 2020, as it commissions its US$600m plant in Tanzania.
The President of Dangote Group, Aliko Dangote, said that the company is currently consolidating its cement businesses across Africa to reap the benefits of scale, adding that its operational offshore cement plants have started to make substantial contributions to group revenue. Dangote added that the pan-African drive will aid the company's plan to do a listing in London and Johannesburg in the near future, with an intention to consolidate the cement assets into one company that will have the scale and resources to compete globally.
Speaking at the commissioning of Tanzanian cement plant in Mtwara, Dangote explained the choice of Tanzania for investment, stating that the existing supply gap has been inadequate in meeting local demand, while noting the need to boost export supply in the eastern Africa regional bloc.
"The construction sector is a major emerging component of the Tanzanian economy that has been receiving the attention of investors. This makes it an ideal market for cement production. The existing cement manufacturers have historically been unable to satisfy local demand, which has been filled by imports. As essential economy-driven infrastructure continues to be built to improve electricity supply and the transport network, additional demand for cement can be expected. The Dangote Cement investment will certainly contribute to Tanzania's on-going story of infrastructure development, job creation and broad economic development. Our strategy is to invest in countries that offer investors attractive returns on investment as well as provide them with an enabling environment to operate. It is our sincere belief that our US$600m investment in Tanzania will further speed up infrastructural development and complement the government's efforts in stimulating economic growth and creating jobs. When in full production, this plant will make Tanzania self-sufficient in cement, with a lot of cement for export to neighbouring countries," said Dangote.
Tanzania: Nigeria's Dangote Cement is set to commission its new 3.0Mt/yr cement plant in Mtwara District on 10 October 2015. The company will also hold the ground-breaking ceremony for 25 hectares of jetty land at Mgao village in Mtwara District on the same day.
The commissioning of the new cement plant, which is part of the company's Africa expansion strategy, will be the fourth in the series after Ethiopia, Zambia and Cameroon. Cement plants due for commissioning this year are located in Senegal and South Africa, while construction works are ongoing in several other African countries.
Tanzania: Local cement makers have said that they are now facing collapse due to the continued influx of cheap imported products in an already saturated market.
The Chairman of the Tanzania Chapter of East African Cement Producers Association (EACPA), Reinhardt Swart, said that their situation was being made worse because they were competing with cheap imports at a time when their margins are squeezed by overcapacity in the market. "I am not asking for protection. I'm not asking the government to ban imports. I am asking for the government to create a level playing field," said Swart. He commented they were operating in a difficult environment with risks of job losses to adjust to the situation.
Swart welcomed the entry of new players in the cement market, saying they would stimulate development in the industry but cautioned that their preferential treatment such as tax breaks was not helpful to the country as it contribute to create unleveled playing field against the local industries. "If you allow new players for integrated cement plants and give tax breaks and you allow imports in an over capacity market, that is not fair. There is a risk that cement producers will suffer job losses," said Swart.
Swart said that Tanzania's cement producers support the government campaign to help local industries grow by using local coal, gypsum and other materials, but that the government was not reciprocating the gesture. "If you force us to use local coal, that increase in cost must be calculated in monetary terms and charged on imports as well. The same applies to royalties. If you force us to grow another industry at our cost, then you must either give us subsidies or charge the exact increased amount as additional duties on imports," said Swart.
Tanzania: Tanzania Portland Cement Company Limited (TPCC) has recently conducted a training seminar for 250 cement distributors and block makers from Dar es Salaam to improve efficiency. The training was aimed at strengthening safety at work, improving the quality of blocks produced and enhancing efficiency in the production process to meet the growing market demand in the country, according to East African Business Week.
"Twiga Cement will continue to conduct similar trainings for block makers throughout the country. This is part of our effort to create awareness in the industry," said TPCC's commercial director, Simon Delens. He said that construction continues to grow with an increasing demand for blocks. "This is part of the firm's contribution to our local employment market. We have been a part of it for 46 years now as we want to build a strong nation," said Delens.
Tanzania: Tanzania Portland Cement Company's (Twiga) net profit grew by almost 50% in 2014 thanks to its strengthened brand image through quality and service delivery to the market.
Twiga announced a profit increase of 47.3% to US$29.8m for 2014, up from US$20.2m in 2013. Twiga Cement chairman Jean-Marc Junon said that the country's 7% GDP growth in 2014 helped to boost cement consumption significantly. "The increase in revenue, coupled with efficient cost management, resulted in an increase in operating profit of 55% to US$41m compared to 2013," said Junon.
Twiga recorded a 15% increase in sales volumes as a result of a better production efficiency, the commissioning of a new cement mill in the last quarter and the re-introduction of Twiga Extra in the company's product mix. Junon said that cement industry prospects are positive as consumption in the country and the East African block had continued to grow over the last few years. "Having an expanded capacity, Twiga is well placed to meet this growing demand," said Junon.
Tanzania: The National Environment Management Council (NEMC) has indefinitely closed down Tanzania Portland Cement Company (TPCC, Twiga) over environmental pollution.
NEMC senior legal officer Heche Suguta said that the plant was also required to pay US$26,944 in penalties. He said that the NEMC had established that the plant was discharging a huge amount of dust, which was bad for the environment and the people surrounding the plant. "We have several times asked the plant management to work out this shortcoming, but they have not taken any steps to mitigate the problem," said Suguta.
Twiga manufactures almost half of the cement produced by the three major plants in the county and its closure is likely to spark the fear of a sharp rise in cement prices. According to 2013 statistics, Twiga produces 1.4Mt/yr of cement out of the 3Mt/yr the country can produce. The remaining 1.6Mt/yr is shared among Mbeya Cement Company and Tanga Cement Company.
Suguta said that, previously, Twiga had four chimneys to emit pollutants, but three broke down and the plant was using only one out-dated chimney, which was overwhelmed. "The plant will be allowed to resume operations only after sorting out the problem by controlling dust," said Suguta. He said that the NEMC had been receiving complaints from residents surrounding the area that the dust from the plant was causing headaches and respiratory problems. "If they disobey this order, we will arrest their managing director and other stern legal action would follow."
Twiga's managing director and area manager for East Africa, Alfonso Rodriguez, said that the dust was coming from an old plant after the filter of the new plant got a technical fault. He said that they had ordered a new filter, which might take a month to arrive in the country.
Tanzania: The National Environment Management Council (NEMC) has vowed to take Tanga Cement to task over allegations of importing thousands of tonnes of hazardous materials. The official environmental overseers allege that Tanga Cement Company Ltd (TCCL) has been importing thermal coal from South Africa in violation of a 10-year-old law that bans an individual or company from importing hazardous materials unless authorised by the NEMC. NEMC officials believe that TCCL's coal is an environmental hazard because it was imported from South Africa, not only without their knowledge, but also without their consent.
"We don't have anything personal, we just want them to abide by the law," said NEMC environment officer Magori Wambura. He added that TCCL had not only ignored the marine conservation laws, but also the government and the public it serves. "We'll take this issue seriously until we make sure they are punished," said Wambura. The NEMC has the power to revoke operational permits for the violating organisations, to settle environmental disputes and to file civil and criminal cases in the court of law.
Legal counsellor John Mnyele from the environmental monitoring council in Tanga said that they would also take TCCL to task for violating the agreement that it had signed with another State environmental monitoring offshoot, the Environment and Social Management Plan (ESMP) on the purchase of coal. Mnyele said that the agreement restricted TCCL's import of coal, limiting it to the use of thermal energy from Kiwira Coal Mines in Mbeya and other sources from Ruvuma region. Mining experts say there are about 1Bnt of coal reserves in southern Tanzania alone.