Saturday, May 18, 2024

Reaction by Cement Industry Players on National Cement’s Clinker Position

Co-Op post

Cement manufacturers have come together to condemn the public outcry by National Cement over the collaborative initiative by the cement sector to support the industry’s sequential endeavors to increase local production of clinker, a primary and critical component of cement manufacturing.  

National Cement is reportedly looking to lay off over 800 employees citing the government’s laxity to introduce high tax duty on imports. In reaction to the media reports of the company’s position,  cement manufactures have called out National Cement for being disingenuous on an industry-wide issue that key stakeholders have engaged on. 

Industry players’ reaction:  

“I do not see why National Cement is playing politics with such a sensitive long-term industry issue that has taken over a year and which involved the entire Cement industry and key stakeholders including National Cement. It is completely disingenuous to allege that imported clinker is cheaper than locally produced clinker when all available information shows otherwise as a way to strong-arm the government into taking action that is to serve one player’s personal interests and expectations. The government has been a complete impartial arbiter in this entire process with its only interest is ensuring that the industry is competitive and thriving, to the benefit of the country and cement consumer. The report  validates that the industry is very vibrant and growing at over 20% as established by KNBS.” ~  Benson Ndeta, Chairman, Savannah Cement. 

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– “I am surprised by the statements being made by one of the players who participated in a  detailed independent study for the industry. This was a comprehensive exercise by the cement sector for the sector and it was conducted through an all-inclusive National  Independent Clinker Verification committee that was chaired by the Ministry of Trade,  Industry, and Enterprise Development. The committee arrived at specific conclusions and  recommendations on next steps for the industry.” ~ Seddiq Hassani, Managing Director,  Bamburi Cement. 

– “We are really shocked by some of the statements in the media. We have done so much as an industry and these media outbursts are discrediting the work and recommendations that have been done by the National Independent Clinker Verification committee, appointed by the cement sector. A lot of investment has been made by cement grinders to increase capacity in the country and support the government to achieve its agenda of national development. In  fact, the common mwanainchi has benefitted from having more cement players in the market  by enjoying lower cement prices.” ~ Sarbjit Sigh Rai, Managing Director, RAI Cement. 

– “We are happy with the recommendations by the committee to give all players a stable and  predictable policy framework for the next four years to be clinker sufficient which will be of  great benefit to the country and industry in support of the fair competition.” ~ Kishor Varsan

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