
Displaying items by tag: EACPA
Tanzania’s cement producers call for level playing field
07 August 2015Tanzania: 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.
East African producers issue warning about imports
05 September 2012Kenya: The East Africa Cement Producers Association (EACPA) has warned that cement imports are not being subjected to the same technical standards and regulations as local cement. At a meeting in Nairobi, local cement producers stated that they want imports halted as the region has surplus production.
"Cement is a very sensitive commodity yet the quality issues on imports are not being addressed at such a time when the number of collapsing buildings is rising," said Kephar Tande, the managing director of the East African Portland Cement Company and chairman of EACPA.
Kenyan manufacturers are discussing the issue with the Kenya Bureau of Standards to tighten the requirements for standards and packaging. These requirements would include expiry date markings on cement bags, and information on storage and handling. The EACPA also alleged that foreign cement manufacturers are using local agents who are 'unqualified' and should now be regulated.
The East African region has a demand for cement of 5Mt/yr and it is currently producing 7Mt/yr. Plants are currently running at 78% of capacity. The EACPA added that the local industry's net profit margin is expected to dip to below 10% in 2012 compared to 15% in 2011.