All data are collected in the Fiscal Year of 2008-2009.

Tanzania / Manufacturing , Construction, Infrastructure

TPCC in which HeidelbergCement holds a majority stake is the leading cement producer in Tanzania and operates a cement plant near the coastal city of Dar es Salaam.

Tanzania Portland Cement Company Ltd. (TPCC) was established by Cementia Holdings AG of Switzerland in 1959. In 1962, Cementia Holdings AG in collaboration with Tanganyika Development Company (now Tanzania Development Corporation) started to build the cement factory at Wazo Hill in Dar es Salaam. The Government of Tanzania owned 20percent of the company shares. Construction of the factory was completed in mid 1966 and the first bag of cement produced in Tanzania came out of the factory at Wazo Hill.

In 1967, the government increased its shares in TPCC from 20 percent to 50 percent and in 1973, the company was nationalized, the government increased its shares to 100 percent. In 1992, the government entered into a joint venture with two foreign companies i.e. Scancem International ANS (13 percent) and Swedfund International AB (13 percent) while the government retained 74 percent of the shares.

TPCC was privatized in 1998 with the following shareholdings: Tanzania Government - 39.4 percent; TPCC Employees (SACCOS) - 0.6 percent; Scancem International - 41.0 percent; Swedfund International - 19.0 percent. In 2003, there were further changes in shareholdings at TPCC: Tanzania Government - 30.0 percent; TPCC Employees (SACCOS) - 0.6 percent; Scancem International - 50.4 percent; Swedfund International - 19.0 percent. In 2005, shareholdings at TPCC were as follows: Tanzania Government - 30.0 percent; TPCC Employees (SACCOS) - 0.7 percent; Scancem International - 69.3 percent.

Due to the consolidation of Scancem International ANS into the Heidelberg Cement Group of the Federal Republic of Germany, the former is now known as HeidelbergCement Africa (HC Africa). Scancem International ANS, a part of HeidelbergCement, is a leading company in the African cement market. Activities include ownership, operation and management of cement factories, grinding plants and terminals, in addition to sale and distribution of cement. The company is operating in seven sub-Saharan countries, while the head office is located at Lysaker in Oslo, Norway.

Tanzania Portland Cement Company Ltd. operates an integrated cement plant at Wazo Hill outside the capital Dar Es Salaam.

Wazo Hill, Dar Es Salaam, Tanzania;
Tel: +255 22 263 0130/5;
Fax: +255 22 263 0139

The company manufactures sell and distributes construction cement in Tanzania. The company manufactures two brands of cement; Twiga Ordinary (TZS 727:2002, Cem I/42,5N) and Twiga Extra (TZS 727:2002, Cem II/A-L/32,5R)

322 employees

TPCC controls 40 percent of the market in Tanzania.

“Our economic goals are to continuously increase our earnings through cost leadership and long-term, profit-oriented growth”

HeidelbergCement, which has the majority stake in TPCC, determines the business model.

“Cement and aggregates form the basis of our dual raw materials and growth strategy. In the cement activities, the focus is on growth markets, while in mature markets we concentrate on expanding vertical integration and securing raw materials for aggregates. HeidelbergCement relies on an integrated management approach. Its success is based on a balance between local responsibility for the business, Group-wide standards and global leadership.

Our local operating units are crucial to the success of the business. Local management has full responsibility for production, market cultivation and the development of managers, with the aim of market and cost leadership. They are supported by Shared Service Centres, which bring together, at national level, the administrative functions for all business lines based on a standardised IT infrastructure. HeidelbergCement standardises all major management processes to ensure transparency, efficiency and quick implementation within the Group. Uniform Group-wide key performance indicators allow direct comparison. They are an important prerequisite for continuous benchmarking.

In the cement business line, investments are being focused on modernising and expanding the capacities of our production facilities in growth markets such as India, Indonesia and Tanzania.”

In 2008 TPCC strengthened its level of service to the large contractors and other professional cement users by expanding bulk handling capacity and increasing the number of mobile silos. TPCC was also able to ensure increased and regular supplies up-country; sales in the Lake and Dodoma regions grew strongly.

In 2006, shares held by the Tanzania government were sold to the general public. Today share holdings at TPCC are as follows: Scancem International - 69.3percent; General Public - 30.7percent. The 30.7percent held by the general public is actively traded on the Dar es Salaam Stock Exchange.

TPCC, and the Tanzanian cement industry as a whole, makes significant contributions to the Tanzanian economy through government taxes, employment, technology im-provements, international business standards, community development programs, and by performing its core activ¬ity: making available cement for building the country.

Since imported cement was zero-rated in 2008 to meet shortages, it is estimated that at least 30,000 tonnes were being dumped into the country per month, coming from Pakistan, India and China. Stakeholders estimate that a total of 3.6 million tonnes of cement freely imported on an annual basis, in contrast to domestic demand of 1.9 million tonnes. Local producers, including TPCC want the Government to intervene and increase protection to local producers from losing businesses to cheap imports. Cheap imports have grown from a mere two percent to more than 20 percent in 2009.

"We want the suspended duty of 35 per cent to be redeemed to restrict excessive cement imports and dumping," Steinar Hastad, commercial director at TPCC stated in August 2009. Hastad said the excessive imports would compromise full utilisation of new production expansion project, which cost the company Sh102 billion.

Contrary to earlier promises, the Government completely removed the suspended duty on imported cement in July 2008. The policy communicated by the Government to TPCC before it decided to invest in its expansion project was that the suspended duty would only be gradually reduced (by 5 percentage points per year) down to 25percent in 2010 and would remain unchanged thereafter.

After TPCC in October 2006 won the case brought against 933 trespassers occupying the Company’s land, the extraordinary lengthy appeal process has continued in 2008 preventing the Company from repossessing the land. The presence of the trespassers on the Company’s land just to the east of the quarry is endangering the operation as it limits the safe expansion of the quarry operation.

After successful start-up of the new cement mill and packing plant in 2008, the new kiln produced its first clinker in March 2009, making TPCC independ¬ent of importing clinker. About 25,000 tons of high quality clinker (on a test basis) was produced by the new clinker line in March. The expansion project consists of a full production line with a screener/crusher of raw materials, limestone storage, raw meal mill and silo, a 5-stage cyclone pre-heater rotary kiln, cement mill and silo, a packing and dispatch facility, as well as a dedicated 132 kV power line. The clinker production line is now under commissioning.