
Displaying items by tag: Tanzania
Tanzania: Tanzania Portland Cement has announced plans to invest a total of US$15.0m in modernising its 2.0Mt/yr-capacity Tanzania Portland Cement plant in 2021. The Tanzania Daily News newspaper has reported that the producer says its main challenge is cargo delays at the port of Dar es Salaam. This has caused concern for potential investors, according to the company. Senior commercial manager Danford Semwenda lobbied the government to help solve the problem.
Dangote Cement grows sales and earnings in 2020
25 March 2021Nigeria: Dangote Cement has recorded sales of US$2.52bn in 2020, up by 16% year-on-year from US$2.18bn in 2019. Earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 21% to US$1.17bn from US$965m. Total cement sales volumes rose by 8% to 25.7Mt from 23.7Mt and Nigerian cement sales rose by 13% to 15.9Mt from 14.1Mt. Highlights for the year included the start of clinker exports from the Apapa terminal and the commissioning of the Onne cement terminal in Nigeria. The group also commissioned a gas power plant in Tanzania.
Chief executive officer Michel Puchercos said, “Despite the impact of the Covid-19 pandemic, 2020 was a record year for Dangote Cement across the board. Several firsts made 2020 a productive year such as our maiden clinker shipment, maiden bond issuance and successful buyback programme. We increased our capacity by 3Mt/yr in Nigeria, commissioned our two export terminals and commissioned our gas power plant in Tanzania. All this was achieved whilst we focused on protecting our people, customers, and communities from the impact of the pandemic.”
Tanga Cement wins National Board of Accountants and Auditors best-presented report award
08 December 2020Tanzania: Tanga Cement has won the award for the overall best-presented financial report for the 2020 financial year at the National Board of Accountants and Auditors (NBAA). The Daily News newspaper has reported that the award is the company’s fifth consecutive win in the category.
Chief accountant Isaac Lupokela said, “Everyone who prepares auditing knows that there is a competition behind that gives us a lot of motivation to do better. But professionally large accountants are the ones who make sure companies operate. Properly prepared calculations help those who use them to make better decisions.” The producer also won best-presented report in the manufacturers category.
Update on Tanzania
02 December 2020Cement scalpers in Tanzania have been threatened with jail time for hoarding cement! The country faced a shortage of cement and other building materials in October 2020 and Prime Minister Kassim Majawali ordered an investigation into the issue following the conclusion of the presidential election earlier that month. Both regional commissioners and the National Prosecution Service have been dragged into the initiative. Director of Public Prosecutions Biswalo Mganga promised to local press that wrongdoers could face up to 30 years in prison for daring to hoard products or distort the market.
Rhetoric aside, the situation is curious given that HeidelbergCement’s local subsidiary, Tanzania Portland Cement, seemed to think in its 2019 annual report, that the country faced a 5Mt/yr overcapacity from integrated and grinding plants compared to a total production base of 10.6Mt/yr. However, the East African newspaper reported that despatches fell to 150,000t in October 2020 from 450,000t in September and August 2020, with a 30% surge in the price in some parts of the country.
In the wake of this, Dangote Cement apologised publicly for failing to communicate a planned stoppage at its Mtwara plant to the wider public. Tanga Cement then denied that its production was down. It said instead that production was at the highest level and that large chunks of its output was servicing government-backed infrastructure projects like the Standard Gauge Railway (SGR) and the Kigongo-Busisi Bridge, which will span the southern end of Lake Victoria. It also blamed a lack of trains on the Tanga-Moshi, which was reopened in mid-2019. It seems reasonable that cement prices might vary quite markedly, even before the profiteers got involved, due to the reasons above. Other issues locally include poor transport links, long distances in a country like Tanzania, the recent election and lingering hiccups from the blockage of imports from Kenya in 2018 that may not have helped either. The investigation continues.
A wider issue here is how much cement production capacity the country and the region can support given a propensity for spikes in prices. As Global Cement has covered previously (GCW456 and prior issues) Chinese producers have been heading into Sub-Saharan Africa over the last decade. Huaxin Cement bought ARM Cement’s assets in Tanzania in May 2020. It renamed the company African Tanzanian Maweni Limestone and then started trial production of clinker at the newly upgraded 0.75Mt/yr Maweni Limestone clinker plant in July 2020. Depending on how long ARM Cement’s former subsidiary was out of action, this one seems unlikely to rock the market too much. Tanga Cement also took the opportunity in November 2020 to say that talks with the government about a new 0.5 – 0.75Mt/yr grinding plant in Arusha were progressing
The proposed 7Mt/yr CNBM/Sinoma ‘mega’ plant is another matter entirely. Most of its output is intended for export but any disruption to local transport links, current or future, could swamp the local market. The export of Chinese infrastructure development around the world through its loan system could offer (occasionally literal) bridging solutions here as cement from a Chinese-backed factory is used to build the transport networks backed by Chinese loans that allow exports to proliferate. Tanzanian President John Magufuli’s comments that the poor terms for a US$10bn Chinese loan supporting a port project could “…only be accepted by a drunken man,” may not have helped international diplomacy. Still, Chinese money is actively getting things built here and elsewhere around the world at a rate previously unheard of.
Returning to the present, it makes a change to highlight a market where cement is truly demanded. A coronavirus-related lockdown may have slowed sales in the first half of 2020 but Dangote Cement estimated that the total market for cement in Tanzania was about 4.2Mt in the first nine months of 2020 and it reported its highest ever orders and dispatches in September 2020. That the country’s prime minister decided to discuss cement prices is a reminder of how important the commodity remains in parts of the world.
Tanzanian prime minister orders probe into cement shortage
17 November 2020Tanzania: Prime Minister Kassim Majawali has ordered regional commissioners to investigate a cement shortage that has reportedly caused a price rise. The Daily News newspaper reports that, in response to price rises first noted in October 2020, Majawali has requested a report by 20 November 2020, and questioned the part that cement producers had played in the issue. He said, “For those who use coals, we have enough to supply them. Clinker is also available at the same market price. We need an explanation behind cement price hiking."
Producers have refuted the accusation that they caused cement prices to rise.
Tanga Cement continues talking to Tanzanian government about new grinding plant in Arusha
11 November 2020Tanzania: Tanga Cement says that talks with the government about a new 0.5 – 0.75Mt/yr grinding plant in Arusha are progressing. Discussions about the project with the authorities originally started in 2016, according to the Daily News newspaper. At present the cement company transports cement to the region using a freight train that was recently inaugurated.
Mbeya Cement launches new pozzolana cement product
11 November 2020Tanzania: Mbeya Cement, part of LafargeHolcim Tanzania, has launched Lafarge Tembo Pozzi, a pozzolana-based cement product. It is intended to replace imports of fly ash, according to the Daily News newspaper. At present the country imports 40,000t/yr of fly ash for the construction industry.
Tanzanian government working on connecting gas to cement plants
21 October 2020Tanzania: The Ministry of Industry and Trade said it is working to connect natural gas supplies to the local cement industry to help reduce operation costs and ultimately reduce the cost of cement to consumers. "The government is looking for the best way to ensure that gas is easily available, especially for existing (cement) industries in the Coastal Zone," said Minister for Industry and Trade Innocent Bashungwa.
The minister has also held a joint meeting with Minister of State in the Prime Minister's Office (Investment) Angellah Kairuki and nine cement manufacturers, according to the Tanzania Daily News newspaper. The meeting covered issues such as poor roads, energy supplies and taxation.
In 2018 the government set cement prices both locally and for import.
Tanzania: Huaxin Cement subsidiary African Tanzanian Maweni Limestone has ignited the kiln and begun trial production of clinker at its newly upgraded 0.75Mt/yr Maweni Limestone clinker plant. Huaxin Cement acquired the subsidiary in May 2020 and begun upgrading the kiln line on 1 June 2020, in spite of the fact that only 14 Huaxin Cement management team colleagues remained in the country due to the company withdrawing staff to China prior to the coronavirus lockdown.
Huaxin Cement says that it will not upgrade the plant’s grinding unit “for various reasons.” The company said, “subject to the epidemic prevention and control situation, the company will send an excellent management team to implement advanced cement process technology and management. We are committed to turning Maweni Limestone into a benchmark industrial enterprise in Tanzania and promoting the local cement industry to achieve quality.”
Nigeria: Denmark-based FLSmidth has secured a contract with Dangote Cement for the supply of hot kiln alignment services for 16 kiln lines across Africa. 10 of the lines are installed across three plants in Nigeria, with the remaining six situated in Republic of the Congo, Ethiopia, South Africa, Tanzania and Zambia. The contract will endure until 2026.
Dangote Cement said that it chose FLSmidth to help it achieve ‘uninterrupted cement production and dispatch around the clock. Dangote Group deputy managing director Arvind Pathak said, “The equipment health audits, services, and support extended by FLSmidth have helped us maintain our pyro process equipment with good reliability. Hot kiln alignment is an excellent preventative maintenance strategy.”
FLSmidth says that it conducts 250 hot kiln alignments worldwide annually.