Tanzania Portland Cement (TPCC), also known as Twiga Cement and part of the HeidelbergCement Group, has reported strong financial results for 2009 despite the global economic slowdown.
According to a statement released by board chairman, Jean-Marc Junon, shows that the company was one of the few to weather the financial storm. "The Tanzanian economy wasn’t too much affected by the world financial crisis and showed a respectable rate of growth also in 2009. The construction and housing sectors continued to develop strongly resulting in an increase in cement demand. "
Despite the company’s decision to cut prices by 11 per cent last year, turnover increased by more than 20 per cent in 2009.
With the regards to the current status of the domestic market, Mr Junon said: “Although the regional cement industry is facing some critical issues in the short term (notably the removal of suspended import duties, deteriorating power supply and difficult logistics), we believe that political stability and continued economic reforms will support a steady level of growth in the medium to long term. The need for infrastructure development and new housing is still very significant in Tanzania and cement consumption per capita is low even in an African context.”
In July 2009 TPCC launched its newly state-of-the-art production facility which was executed on time and within budget. Production capacity is now more than 1.4Mta of cement.