TPCC to expand operations and invests more than USD 100 million

Tanzania Portland Cement Company (TPCC), in which HeidelbergCement holds a majority stake, will expand its cement capacity to around 1.2 million tonnes. TPCC is the leading cement producer in Tanzania and operates a cement plant near the coastal city of Dar es Salaam, the biggest market in Tanzania. TPCC’s current cement production covers approximately 40% of the domestic cement demand.

Tanzania has achieved considerable progress in the liberalization and stabilisation of its economy. Since 2000, Tanzania’s economy has grown by around 6% per year leading also to rising construction activities. In order to meet the increasing cement demand, HeidelbergCement will invest more than USD 100 million to expand and modernise TPCC’s production facilities with environmentally friendly and state of the art technology by 2009. This includes, among others, the installation of a new kiln line, a cement grinding mill and packing and loading facilities.

“This investment is another important step in our strategy to further expand in growth countries”, explains Dr. Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement. “With this investment we also want to support the successful reforms which were confirmed by President Kikwete and Minister for Trade and Industry Mramba during our meeting in Dar es Salaam. Stable economic and political conditions are necessary requirements for such a big long-term investment.”