Ghacem sets out the facts

Ghacem sets out the facts
Published: 12 March 2004

Ghacem Ghana Limited, the major domestic producer of cement, says it is impossible for businessmen in Ghana who claim they can import cement from Russia at US$3 per bag to flood the market.  The company’s manager Mr. Bjarme Schmidt disclosed this last week in Accra when he briefed newsmen on recent developments that had taken place in the cement industry worldwide.  He said the cost of freight alone would discourage importers to abandon the business because of heavy nature of the product.  He pointed out that contractors need particular cement in order to execute a particular project, which requires attention of an engineer for the production of such cement, stressing that this important factor must be taking into consideration by the importers.

Ghacem has come under severe criticism from the government and the general public following increased in the producer price of a bag of cement to ¢47, 250.00 (US$5.40, approx US$108 per tonne) last month.  As a result of this, some persons in government announced their intentions to import cement at a lower cost from Russia to flood the local market.