Local demand for construction cement surged in the first half of the
year as a result of increased building activities in the country.
The six-month period ending June 30 saw a 10 per cent growth of the
cement market compared to only three per cent recorded in the corresponding
period last year.
He said that TPCC has received a lot of requests for supplies of
construction cement to the two neighbouring countries.
Increased demand and improved production efficiency have boosted TPCC's
net profit to about 32bn/- in the first half of the year, up from the 28.6bn/-
recorded in the corresponding period last year.
Mr Lesoinne said that improved power supply also contributed to
improved production performance of the company that sells about 95 per cent of
its cement in the local market, with the remaining amount exported to EAC
countries.
With the prevalence of a strong demand coupled with the ability to
produce clinker locally, TPCC expects to improve its performance in the
remaining half of this year. But the better results ahead remain subject to
other fundamental factors like reliable power supply.
There might be a significant negative impact on the TPCC operations for
instance if availability of natural gas is not guaranteed. "If the
decision to stop supplying gas to TPCC is implemented, it will lead to the
closure of the plant," he warned in an interview with the 'Daily News'.
He said TPCC has written to the Minister for Finance and Economic
Affairs on the production risks which may arise regarding the order issued
recently by the Ministry of Energy and Minerals to direct gas supplies to the
Tanzania Electric Supply Company (Tanesco).
The company's unaudited results for the first six months of this year
show that revenue increased by 19 per cent to 127.04bn/- compared to the
107.01bn/- recorded in a similar period a year before. The increase in revenue
is attributed to higher sales volume.
"The TPCC net profit increased by 12 per cent mainly due to rise
in volume coupled with better production efficiency resulting from the new
facility," stated the statement.
However, the imported clinker negatively impacted on the costs of sales
in the period under review because of the late start of the rehabilitated kiln
combined with inconsistency in electricity supply.
The rehabilitation of an old production line was completed in July this
year. As TPCC continues to improve its results in a more competitive
environment, it has been able to efficiently control all other costs and the
increases reflect higher levels of activity.
One of the cement company's near future plans is to produce all the
clinker it needs to satisfy its cement sales but only if the rehabilitated kiln
is stable.
The Confederation of Tanzania Industry (CTI) Chairman, Mr Felix Mosha,
said recently that the manufacturing sector has posted outstanding performances
outweighing agro-products in the EAC markets and has even registered trade
surplus.
Source: The Daily News,http://www.dailynews.co.tz, reported by Sebastian Mrindoko
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