Diamond Cement takes measures to offset supply shortfall

Aflao, Mar. 13, GNA - Diamond Cement Ghana Limited (DCGL), one of the two cement producers in the country has taken measures to offset shortfall in supply due to the electricity rationing in the country. Mr Chitti Babu, General Manager of DCGL told the Ghana News Agency (GNA) at Aflao that the company had acquired a one-point-two megawatt generating plant to ensure regular power supply to some sections of the factory at Aflao.

He said the company had also decided to import clinker from the Far East to make up for the supply shortfall from the Tabligbo Mines in Togo as a result of the same problem.

Mr Babu said DCGL had increased its production within the last few days of regular supply, adding that, its production shortfall since August 2006 when the power rationing began was 2.5 million bags. "Our monthly production output, which stood at 95,000 to 100,000 tonnes per month slackened by about 25 percent by which reason we could not satisfy the market," Mr Babu said.

The shortfall in supply has led to a price hike of the product from about 60,000 cedis to between 75,000 and 90,000 cedis per bag. He blamed construction companies, which were purchasing the product at 90,000 cedis a bag and "non-dealers becoming dealers overnight to reap windfalls from the situation" for the increase in price.

Mr Babu pointed out that the factory price still stood at 55,200 cedis a bag while transport fares remained the same. He appealed to dealers not to take undue advantage of the situation to "over price the product on the market".

The General Manager expressed the hope that the power supply situation would improve soon to reverse the situation. At Aflao where cement dealers got their first supply in several weeks the price stood at 70,000 cedis a bag. Checks across the border in Lome also indicated that cement was in short supply in Togo.