Displaying items by tag: Tanzania
Tanzania: Tanga Cement’s earnings have fallen significantly due to low cement prices. It operating earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 72% year-on-year to US$2.26m in the first half of 2017. However, its sales revenue grew by 2% to US$35m from US$34.2m.The cement producer cut its prices in response to competition, raising its sales volumes and increasing its market share.
Tanga Cement warns of profit drop in first half of 2017
03 November 2017Tanzania: Tanga Cement has issued a profit warning for the first half of 2017. It expects its operating profit before interest and tax for the six months that ended on 30 June 2017 to be 125 - 135% lower than that achieved in the same period in 2016. The cement producer blamed the competitive local market leading to lower prices. It also attributed the profit loss to new competitors using imported clinker.
Manyara Cement seeks investors to build plant in Tanzania
14 September 2017Tanzania: Manyara Cement is seeking investors to help it build a 0.58Mt/yr plant in the Hanang District of the Manyara Region. Project Engineer Felix Laizer said the plant would be built in phases, according to the Daily News newspaper. The unit is still in the preparation stage and it has been registered at the Tanzania Investment Centre (TIC). Around US$38m will be spent on the first stage of the project. It is undecided at present whether the site will manufacture its own clinker or import it. The project also plans to build a captive power plant in the long term to power its mill.
Tanzania: Tanga Cement’s revenue dropped by 20% year-on-year to US$75m in 2016 from US$94m in 2015 due to competition and lower government spending on infrastructure. However, despite falling net profits it managed to increase its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) to US$17m from US$13m following cost cutting. The cement producer commissioned its second integrated production line in August 2016, increasing its production capacity to 1.25Mt/yr.
Tanzania: Kibo Mining has signed a memorandum of understanding with Mbeya Cement, a subsidiary of LafargeHolcim, to collaborate regionally and to share materials in the Mbeya and Songwe regions. The agreement includes arrangements to supply coal, limestone, fly ash, electricity and cement between the parties. It also includes plans to bring together local development bodies to develop the region.
Kibo Mining operates a thermal coal deposit at Mbeya and it is developing a 250 – 350MW coal power plant at the site with the help of Chinese contractors.
Tanzania: January Makamba, the Minister of State in the Vice-President's Office, Union and Environment, has ordered that the Moshi Cement plant close whilst it implements the recommendations of the National Environment Management Council (NEMC). Following a visit by the council the management of the plant were asked to observe the Environment Management Act of 2004, according to the Daily News newspaper. Recommendations the plant has been asked to take action on include reducing dust emissions at the site.
Tanzania: The Ministry of Energy and Minerals has given Dangote Cement a 10km2 plot of land in Ngaka, Ruvuma to mine coal. The decision follows the acknowledgment by President John Magufuli that Tancoal, the local coal producer, is unable to meet domestic demand, according to the Citizen newspaper. At present manufacturers are unable to import coal from South Africa due to a government ban. In late 2016 Dangote Cement made a deal with the government to supply natural gas to its cement plant at Mtwara following a temporary shutdown at the site.
Tanzania: Sinoma will build a US$1bn cement plant in the coastal city of Tanga that is focused on exports. Prime Minister Kassim Majaliwa commended the plans following a meeting with representatives of Sinoma, Hengya Cement and local officials, according to the Xinhua News Agency. 70% of cement produced at the plant will be exported to local countries including Somalia, Kenya, Mozambique, Sudan, the Democratic Republic of Congo and Uganda. Construction at the site is expected to start in May 2017. The project will also include building a wharf to aid exports.
ARM Cement to increase grinding capacity in Kenya by early 2018
24 February 2017Kenya: ARM Cement plans to increase its grinding capacity by 50% at its 1Mt/yr cement plant at Athi River. Pradeep Paunrana, the managing director of ARM Cement, made the comments in an interview reported on by Reuters. The new grinding capacity will use clinker from the company’s plant at Tanga in Tanzania. The upgrade plans follow an equity deal in late 2016 with the CDC Group to secure US$140m in funding. However, most of this money has been used to pay off debts.
Paunrana noted that cement demand in the East African region is expected to rise at 8 – 10%/yr. The cement producer is preparing to build a new cement plant at Kitui in Kenya but it wants to increase its capacity utilisation rate from its plant in Tanzania first.
Kenyan cement exports drop in 2016
12 January 2017Kenya: Data from the Kenya National Bureau of Statistics report that cement exports dropped in value to US$7.6m in 2016 from US$25.6m in 2015. Cement producers have blamed declining volumes on cheap imports, according to the East African newspaper. The opening of a cement plant by Dangote Cement in Tanzania has also contributed to the decline, forcing companies to cut their prices.