TPCC reports 22% rise in net profit, Tanzania

TPCC reports 22% rise in net profit, Tanzania

Tanzania Portland Cement Company Ltd (TPCC), part of HeidelbergCement, posted a 22 per cent increase in net profit despite competition from regional imports.

Net profit for the year to December 2012 rose to TZS1.57bn (US$968m) from TZS50.6bn in 2011. Turnover increased 15 per cent to reach TZS249.11bn compared to 217.25bn recorded in the year before. The cost of sales was pushed up by double digit high inflation rates and energy tariffs rising to TZS126.7bn against TZS117.7bn registered in the year ending 2011. However, in the year under review, the shilling remained relatively stable compared with the major trading world currencies depreciating by less than one per cent particularly against the US dollar.

According to the TPCC statement of audited results, local cement producers were in the period under review exposed to imports as East African Community (EAC) governments decision for the fourth time not to reinstate suspended duties on cement in the common external tariff. "Where the industry is ready to face competition, it is hoped that there will be fair play in the market," TPCC said in the statement.

The company is now is constructing a new cement mill with an annual capacity of 700,000t at its Wazo Hill plant, some 25km northwest of the coastal metropolis of Dar es Salaam. The investment of US$40m also includes the construction of a new clinker and a new cement silo as well as the installation of new cement bag packing and dispatch facilities. The investment follows the recent modernisation of one of its older kilns which increased clinker capacity by 250,000tpa. Commissioning of the new mill is scheduled late 2014 which will lift the company's total cement capacity to 2Mta.

TPCC is also venturing into the aggregates market as part of its 50th anniversary celebrations. "Our company has decided to venture in the business of the second most important construction material after cement which is aggregates.” TPCC Director General, Mr Pascal Lesoinne said.

"The Twiga Aggregates project will have a very short development phase and we are therefore confident that before the end of this year, our product will be well positioned on the market," he added.