Tanga Cement Company Limited, one of the country’s biggest cement producers, will construct a second kiln in August this year.
Speaking in Dar es Salaam during the company’s 2011 Annual General Meeting at the weekend, TCC Managing Director Erik Westerberg said the second kiln will enable the firm to produce enough clinker for its requirements and do away with imports.
“The East African market is experiencing rapid economic development as a result of infrastructure improvement and housing needs, so this will give the company a significant competitive advantage,” he said.
Erik said the construction of the kiln expected to commence in the third quarter of this year would increase the company’s clinker production capacity by 600,000 tonnes per annum, more than double current capacity.
He further said that the building of the second kiln will be a historic moment to TCC, Afrisam and Tanzania, given the magnitude of the project to cost an estimated USD165m.
Speaking about the company’s performance, the managing director said cement production capacity in 2010 increased from 750,000 tonnes to more than 1.2 tonnes per year after commissioning the company’s second cement mill.
Addressing some of its shareholders, Erik said for the year 2011 the company has played a big role in giving back to the community through its social investment programme, contributing 341m/- for various projects in the area of health, education, sustainable development and environment.
However mentioning some of the challenges the firm faced during the year 2011 he said unreliable power supply forced the company to make extensive use of its own power generating capacity to safeguard production which hiked production costs.
He also mentioned another challenge as deterioration of railway network which again forced the company to increasingly rely on road transport for distribution of its products.