Tanzania: We Are Not Closed, Says Twiga Cement

Bya897204973

Updated Fri, 13 Feb 2015 14:21:43 GMT

TANZANIA's largest cement producer, Tanzania Portland Cement Company (TPCC) has refuted reports of closing down its operations due to environmental concerns as "false and overly exaggerated".

The TPCC Managing Director, Mr Alfonso Rodriguez, told the 'Daily News' on Wednesday that, "We are not closed, the operations are going on as usual at TPCC," Last week, TPCC which trades as Twiga on the Dar es Salaam Stock Exchange (DSE) was reportedly ordered to close down operations by the National Environment Management Council (NEMC).

Several media outlets reported that NEMC faulted one of the plant's chimney for discharging a huge amount of dust said to be bad for people surrounding it.

Mr Rodriguez declined to give more details but noted briefly that, "There are a lot of misinformation and exaggeration on the issue."

TPCC produces almost 50 per cent of the cement output in the country. Closure of the plant was likely to create speculations that could drive up cement prices.

The equity market reports show that TWIGA shares were trading at a sober mood and on Monday this week lost 0.51 per cent after closing at 3,900/- from 3,920/- on Friday.

Official data from the cement industry shows that TPCC produces 1.4 million tonnes of cement out of the country's annual output of 3 million tonnes.

The rest output is shared largely between Mbeya Cement Company and Tanga Cement Company. According to the half year 2014 financial report, TPCC recorded revenues of 115bn/-, which is an increase of 13 per cent compared to the corresponding period in the year 2013.

The increase in revenue was mainly a result of increased sales volumes and overall improved performance. Similarly, the operating profit for the period increased by 38 per cent to 37.08bn/- compared to the same period in the preceding period largely due to reduced production costs.

Net profit for the period increased by 41 per cent to 27.14bn/- compared to 19.25bn/- of the corresponding period 2013.