Tanga Cement PLC makes this announcement in compliance with the Dar es Salaam Stock Exchange rules 2014 (Continuing listing obligation rule 2,53 (10 and 78) as warranted by Capital Markets Authority Act, Cap 79 of 1994.
Tanga Cement PLC half year results for the six months ended 30 June 2015 show that its operating profit is approximately, in range of 30% - 40% below achievement of the same period in June 2014.
This is a result of temporary margin erosion driven by a short term influx of cheap imported cement from the Middle East and Asia. These imports are priced lower that Tanzania manufactured cement because, we believe, importers, systematically evade taxation and tariff regulations. Tanga Cement PLC, through the East African Cement Producers Association, has successfully engaged the Government of the Republic of Tanzania to address this issue and to ensure a level, sustainable playing field for the cement industry.
A further cause of temporary pressure on margin was a regulatory issue relating to coal importation. This has temporarily denied Tanga Cement PLC access to high quality , affordable imported coal.
Despite these short term challenges, Tanga Cement is confident regarding the Outlook for 2015.
By Order of the Board
- About DSE
- Market Reports
- Market Participants
- Listed Securities
- Media Centre
- Investor Relations
- Notes From CEO
- Contact us