13 February 2007

HeidelbergCement invests more than USD 100 million in Africa

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.”

Like in all other locations worldwide, HeidelbergCement takes its social responsibility in Tanzania by supporting numerous social activities. With cement donations, we support social building projects, such as schools, hospitals and orphan centres as well as the supply of drinking water. This includes also, for instance, the support of the local community in the construction of safe sidewalks in the surroundings of our plant.

HeidelbergCement has been operating in Africa via subsidiaries since 1965. With the exception of Tanzania, all locations are in nine West African countries south of the Sahara. HeidelbergCement is the market leader in most countries.


Caption: Tanzania Portland Cement covers around 40 % of Tanzania’s cement consumption.

Andreas Schaller

Group Spokesman, Director Group Communication & Investor Relations
Tel: 
+49 6221 481 13249
Fax: 
+49 6221 481 13217
HeidelbergCement AG
Berliner Straße 6
69120 Heidelberg
Germany

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