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Business News of Friday, 5 July 2002

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Production down by 36% at GHACEM

Cement production at Ghana Cement Works has gone down from 1.1 million tonnes to 700,000 tonnes per annum following stiff competition, Mr Per David Borenstein, Acting Works Manager, said on Thursday.

Mr Borenstein, who was speaking at the inauguration of a seven-member executive of the local union, said the stiff competition came from West Africa Cement Works (WACEM) that entered the market two years ago and was building a new factory at Aflao.

He said another company had plans to put up a cement import terminal in Tema and "this will definitely break the monopoly that GHACEM has enjoyed for almost 30 years. Therefore, employees are required to reduce cost in order to face the challenges ahead".

Mr Borenstein appealed to the union executives not to use the resources at their disposal and time to generate internal conflicts between management and workers but co-operate with management in the struggle for the continued existence of GHACEM.

Mr Bjarne Schmidt, Managing Director, said the increased competition that GHACEM faced called for new workers' attitude. "This is because the company that would survive the competition would be the most efficient producer in terms of operational cost and market efficiency.''

Swearing in the officers, Mr Morgan Ayawine, Regional Officer of the Industrial and Commercial Workers Union (ICU), called on them to lead in the crusade to raise productivity. Mr Kenneth Keegan Ocran, Chairman of the seven-member executive, promised that members would run an open administration and urged other workers to feel free to approach them with any issue they were not clear about.