Mr. Frederic Albrecht (left) addressing the Parliamentarians
LOCAL CEMENT manufacturers have complained about the numerous challenges facing the industry, notable among which are the long standing fumigation levy of $0.50 per ton, the new jetty in Tema (about $10-$15 per ton increase in tariff if construction is pursued and implemented) and the continuous influx of imported cement products.
Frederic Albrecht, Chairman of LOCMAG/ Managing Director of CBI Ghana Ltd, manufacturers of Supacem Cement, made these known when members of his association recently met Parliament’s Committee on Trade and Industry.
According to him, another problem bothering manufacturers was the opening up of more cement factories, which was not economically viable and could tempt players to compromise with the quality of cement.
“Currently we are going below 60 % utilization. We are now a country that produces 12 million tonnes of cement with a consumption capacity of around 6.4 million tonnes bringing an excess capacity of 5.7 m/tons. This means, we have adequate installed capacity,” he highlighted.
Members of LOCMAG comprising the Managing Directors/representatives from Ghacem Ltd, Diamond Cement Group, CIMAF Gh. Ltd. and CBI Gh. Ltd. constitute the nucleus of the local cement industry in Ghana.
“We have been able to furnish the house with our challenges because as local manufacturers what we are concerned about is the value we give to the market/Ghanaians in terms of the construction industry and the framework we put in place for the future of the industry,” he said.
The Parliament Select Committee on Trade and Industry led by its chairman, Nana Amaniampong Marfo, MP for Afigya-Kwabre North, assured the cement manufacturers that it would take all legal steps to ensure that fair trade practices within the industry were observed to move it forward.
“As we have been made aware, the local cement industry is facing a lot of challenges from manufacturing, importation and its final usage. In fact there are some of the cement products you do not know where it is coming from and we should know that all these affect the built environment. We will ensure that the Ghana Standards Authority comes in as well so we can together find a proper way of promoting the sector,” he stated.
BY Samuel Boadi