GHACEM IS expected to cut the sod for the construction of a 1.5-million ton capacity cement production plant in Kumasi in the coming weeks.
This will serve the Ashanti region and its environs.
Managing Director of GHACEM, Stefano Gallini, commenting on the move, said the new project has become necessary due to the growing demand for cement in the Ashanti Region. Additionally, he said the Tema and Takoradi factories would be expanded to improve efficiency and timely delivery of products.
Mr. Gallini said “the Ghanaian construction sector growth is the driving force behind this agenda and our Ghanaian customers are at the center of this.”
He further noted that “We want to continue taking care of the Ghanaian market and as you may be aware, there has been an exponential growth in commercial activities in which GHACEM has been involved, and we want to continue with our contribution for the nation’s development in this regard.”
The new plant has plans of exporting to Burkina Faso and other neighboring countries.
The $100 million investment by the company was expected to increase employment opportunities for the cement industry, as many more projects were undertaken.
Commenting on prices of cement products, the Managing Director explained that the company will adjust the price of its cement products if the cost of raw materials and freight witnessed a reduction in the coming weeks.
He indicated that the recent hike in cement prices was as a result of the high costs incurred during production and increasing freight costs.
“We have been exposed to rising costs of raw materials, freight and other components in the production of our cement products for the past seven to eight months, such that we have to take care of it in order not to pass it over to the consumer, looking at the economic situation. However, we commit to adjusting the price downwards if the cost of freight is reduced. For us, other raw materials can be sourced at lower prices,” he noted.
He further assured that engagements were ongoing with the Ghana Ports and Harbours Authority to address some concerns with port handling charges, which also added on to the cost of production of the company.
Mr. Gallini explained that about 99.5% of GHACEM employees were Ghanaian.
From 2012 to 2015, GHACEM spent over €52 million in expansion investment in Tema and Takoradi.
A business desk report