Power crisis reduces Ghacem output

Power crisis reduces Ghacem output
15 December 2014

Ghana’s largest cement producer, Ghacem, said that ongoing power cuts to manufacturing industries have “significantly” reduced its output, leading to concerns on supply shortages and a potential rise in prices.

The Electricity Company of Ghana (ECG) earlier this month announced that it is cutting power supplied to industries by as much as 25 per cent to create an artificial reserve margin to stabilise the power sector, which it said is under immense pressure to meet rising demand. Under the announced load-rationing regime for industries, manufacturers will have a blackout for 48 hours, before enjoying what the power distributor described as “uninterrupted” power for six days – after which the process restarts.

Commenting on the impact of the power crisis, Dr George Dawson-Ahmoah, Ghacem’s Strategy and Corporate Affairs Director told the Business & Financial Times (B&FT) that the load-shedding management has reduced production, adding that the company is not able to produce at full capacity.

The report stated that a bag of Ghacem cement is being sold on the open market at an average price of GHS30 9(US$9) but the potential fall in supply could lead to an increase in prices in the coming days.

Published under Cement News