CHEAP CLINKER IMPORTS EAT TANGA CEMENT PROFIT
The oversupply of cement due to cheap imported clinker has sent a threatening alarm to one of the biggest cement producer in Tanzania, Tanga cement...
The oversupply of cement due to cheap imported clinker has sent a threatening alarm to one of the biggest cement producer in Tanzania, Tanga cement, forcing the company to cut down pre-tax profit in this year first half to between 125 per cent and 135 per cent lower than what achieved in first of last year.
“The firm adopted a more proportionally responsive pricing strategy to sustain its market sales volume but margins and overall profitability remain under pressure. The profitability pressure was compounded further by the influx of “new low price competitors using larger proportions of imported clinker,” Tanga Cement Chairman, Lawrence Masha said in a statement.
Tanga Cement trading as Simba is the main producer of road infrastructure cement… expects loss per share will be around Tshs 220 and Tshs 245 per share, being 225 per cent and 239 per cent lower than Tshs176 earning per share in H1 last year.
Recently, Tanga Cement said cheap imported clinkers were threatening cement firms survival. The firm said five self-clinker producers may jump into importation bandwagon of seven noneclinker producers since costs of local are higher compared to imported one.
Iran and Pakistani clinker producers are not after profit making rather making foreign currencies to their respective countries.