Tanga cement eye East African market

In a move that aims to capture the East African Market, Tanga Cement Company Limited (TCCL) has signed a power supply agreement with Tanzania Electric Supply Company (Tanesco) to ensure reliable supply of power while fostering its production capacity.

Speaking to reporters in a news conference during the signing ceremony of the power supply agreement last week in Dar es Salaam, TCCL, Managing Director, Reinhardt Swart said that the agreement would assures Tanga cement to receive adequate and reliable supply of electricity and ancillary services on the 132/33Kv grid.

 “This agreement comes at a time when the cement manufacturer is expanding the capacity of its operation, whereby a new kiln line is being constructed at its plant in Tanga,”

“This expansion is expected to double the company’s electricity demand to 40MVA, which Tanesco has agreed to supply,” he said.

Swart added that the cement firm’s is currently eyeing the East African market by exporting its well manufacturing product (Simba Cement) to Kampala (Uganda) in order to expand its business network.

He further said that TCCL is exporting its product in Democratic Republic Congo (DRC), Kenya and Rwanda but they are looking forward to export in Kampala.

“We are still studying the market competition in Uganda although it’s far but we will export our product in Kampala,” he added.

Swart noted that the agreement also provides guidelines on communicating power outages between the two parties so as to minimize production disruptions at the cement factory.

He clarified that TCCL is also building its own 132/33kV substation, adjacent to the Tanesco’s Kange substation which is currently supplying electricity to the TCCL plant.

On his part, Tanesco, Deputy Managing Director (Investment) Decklan Mhaiki said that the agreement would improve Tanga cement production capacity.

“Tanga cement is one of our giant customers taking into consideration of their status we have agreed to supply power to their substation in a move that will foster their production capacity,” he explained.

He went on to say that the agreement would enable Tanesco to generate nearly MVA 40 instead of MVA 20 that is generating currently through its substation in Tanga region.

Mhaiki underscored that the process of power supply agreement was firstly approved and verified by Energy and Water Utilities Regulators Authority (EWURA) to ensure that  international and acceptable standards are adhere in the agreement.

Last year, TCCL and Chinese firm Sinoma marked the commencement of expansion of the cement company’s production facilities in Tanga, and the construction of a second clinker line with the capacity of 775,000 tons per year.

That was the second expansion project the Company is carrying out since it’s commissioning in 1980. The other expansion was done in the 2009-2010 period, when the firm installed and commissioned its Cement Mill No. 2.

Tanga Cement Company Limited is the manufacturer of the well known Simba brand of Cement. It is Tanzania’s first publicly listed cement company. It employs 300 people directly and 5,000 indirectly.

Ends.