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Twiga cement shelves multibillion shillings expansion project
By ABDUEL ELINAZA, 21st June 2011 @ 12:00, Total Comments: 0, Hits: 98
TANZANIA Portland Cement Company (TPCC) has halted its multibillion shilling plan to double production over a land dispute.
The project, named plant five, was expected to start this year but due to uncertainties in getting raw materials - limestone and river sands - the investors have decided to shelve the investment.
''We were told the expansion project was put on hold, pending the outcome of the land dispute,'' TPCC's Human Resources and Executive Affairs Director Jayne Nyimbo Taylor said in Dar es Salaam on Monday.
TPCC, trading on the Dar es Salaam Stock Exchange (DSE) as Twiga, won the land dispute case three years ago but the government has to date reportedly failed to evict trespassers who have now come 100 metres from the active mining area.
Cement experts say efficiency of any cement production is subject to availability of raw materials mined close to the factory site, with the prices of materials going up if hauled from afar.
The new plant was expected to produce about 1.2 million metric tonnes that could reduce the demand-supply gap in the market. The investment for the plant was not immediately quantified but investment in plant four, which was commissioned three years ago, was in excess of 100 million US dollars (over 150bn/-).
''So long as there is no assurance of obtaining back the company's land, the future investment is out of question,'' said Ms Nyimbo.
Despite the ruling by the Court of Appeal that ordered the eviction of trespassers in 2008, efforts by court brokers to execute the court order have failed allegedly to minimal support from government authorities.
Gemaco Auction Mart Chairman and Managing Director Enock Mwakassala said, ''We have completely failed to get the requisite police support to enforce the decree.''
The Twiga Cement Managing Director Mr Pascal Lesoinne told International Social Market Economy in Dar es Salaam recently that the country's private sector was weak and the judiciary was further acerbating the problem by delaying commercial cases.
The cement company last year performed impressively, recording a 12 per cent increase in turnover to almost 120bn/- as a result of higher sales volume that helped to offset the price decrease gap.
According to Twiga's Security and Safety Manager, Mr Alfred Antony, the trespassers are sitting on the strategic area, which is rich in quality limestone and other materials related to cement production.
There are about 1000 encroachers who are a now demanding compensation before they vacate the land even though the government has agreed to give them new plots. TPCC was established in 1959 and privatised about a decade and half ago.
The company's objective is to manufacture, sell and distribute high quality cement in the country.
Daily News | Twiga cement shelves multibillion shillings expansion project
By ABDUEL ELINAZA, 21st June 2011 @ 12:00, Total Comments: 0, Hits: 98
TANZANIA Portland Cement Company (TPCC) has halted its multibillion shilling plan to double production over a land dispute.
The project, named plant five, was expected to start this year but due to uncertainties in getting raw materials - limestone and river sands - the investors have decided to shelve the investment.
''We were told the expansion project was put on hold, pending the outcome of the land dispute,'' TPCC's Human Resources and Executive Affairs Director Jayne Nyimbo Taylor said in Dar es Salaam on Monday.
TPCC, trading on the Dar es Salaam Stock Exchange (DSE) as Twiga, won the land dispute case three years ago but the government has to date reportedly failed to evict trespassers who have now come 100 metres from the active mining area.
Cement experts say efficiency of any cement production is subject to availability of raw materials mined close to the factory site, with the prices of materials going up if hauled from afar.
The new plant was expected to produce about 1.2 million metric tonnes that could reduce the demand-supply gap in the market. The investment for the plant was not immediately quantified but investment in plant four, which was commissioned three years ago, was in excess of 100 million US dollars (over 150bn/-).
''So long as there is no assurance of obtaining back the company's land, the future investment is out of question,'' said Ms Nyimbo.
Despite the ruling by the Court of Appeal that ordered the eviction of trespassers in 2008, efforts by court brokers to execute the court order have failed allegedly to minimal support from government authorities.
Gemaco Auction Mart Chairman and Managing Director Enock Mwakassala said, ''We have completely failed to get the requisite police support to enforce the decree.''
The Twiga Cement Managing Director Mr Pascal Lesoinne told International Social Market Economy in Dar es Salaam recently that the country's private sector was weak and the judiciary was further acerbating the problem by delaying commercial cases.
The cement company last year performed impressively, recording a 12 per cent increase in turnover to almost 120bn/- as a result of higher sales volume that helped to offset the price decrease gap.
According to Twiga's Security and Safety Manager, Mr Alfred Antony, the trespassers are sitting on the strategic area, which is rich in quality limestone and other materials related to cement production.
There are about 1000 encroachers who are a now demanding compensation before they vacate the land even though the government has agreed to give them new plots. TPCC was established in 1959 and privatised about a decade and half ago.
The company's objective is to manufacture, sell and distribute high quality cement in the country.
Daily News | Twiga cement shelves multibillion shillings expansion project
