Gas maker targets 200% expansion

Public owned firm, TOL Gases, has completed construction and commissioning of a carbon dioxide manufacturing plant in Rungwe District, Mbeya Region, saying this will lift its production capacity by over 200 per cent.

TOL Board chairman Harold Temu, told shareholders during their annual general meeting on Friday that the new plant will enable the firm to meet the entire local carbon dioxide demand and export some to countries in the East Africa and Southern Africa regions.

“TOL has already taken steps to ensure that manufacturing of gases is maintained at the highest international standards. To achieve this, we have been seeking to attain the food safety systems certification,” he said.

TOL managing director Daniel Warungu, said the company has the largest air separation plant in East and Central Africa capable of producing 31 tonnes of industrial gases per day.

“Very soon customers will be able to benefit from the size and scale of the plant,” noted Mr Warungu.

He decried the mushrooming of rogue gas companies that threaten to erode the trust and confidence built by respectable business players over decades of serving the region.

He appealed to relevant government authorities to tighten control in a bid to curb the rise of dishonest gas players.

TOL registered a revenue growth of 26 per cent and 30 per cent during the financial years -- 2011 and 2012, respectively.

“This is an indication that our comprehensive strategic plan has started producing results,” Mr Temu told TOL stakeholders at a meeting.

He said the firm was facing a sharp competition from foreign-based gas business players.

With supportive figures, the board chairman said TOL profit after tax grew seven folds to Sh952 million in 2012 from Sh120 million in the year 2011.

A TOL shareholder, Mr Andrew Msechu, said: “We’re delighted by the company’s performance... from being a loss-making entity to one that is profit-making. I am sure this improvement will benefit shareholders in terms of dividends and the nation as a whole.”
Source: The Citizen, reported from Dar es Salaam, Tanzania
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