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Business News of Tuesday, 24 May 2016

Source: kasapafmonline.com

Ban importation of Chinese cement – Dangote appeals to Gov’t

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Dangote Cement (Ghana) Limited, manufacturers of class potland cement type one, has appealed to the Government to ban the importation of Chinese cement into the country.

In the view of the company, much as the Chinese cement is affecting local manufacturers, the lives of consumers of such product are also in danger since its efficacy has not been established.

They believe that a complete ban on the importation of Chinese cement will save the local industry from collapse.

According to the company, the local cement industry is likely to experience what is happening in the textile and steal industries if the government fails to act.

The Chinese product, Kasapafmonline.com learnt, is imported into the country already bagged and goes onto the market directly from the vessel where test runs to ensure its effectiveness and quality are neglected.

Tor Nygard, MD/CEO, told the Parliamentary Press Corps when they toured the facilities of Dangote Cement at Tema last Friday that it was about time the Government of Ghana puts measures to stop the influx of Chinese cement onto the Ghanaian market.

“Importation of Chinese cement is indirectly affecting all the local manufacturers – Diamond Cement, Dangote Cement, GHACEM among others. Those who import it are not paying the taxes they are supposed to pay. They pay very low tax and therefore make low contribution to the Ghanaian economy. No employment – they only ship straight to the customers”, he noted.

Sales and Marketing Manager of Dangote Cement, Joseph Abo, told the journalists that the situation needs a critical attention because the lives of the citizenry are at stake.

“That is very dangerous. For cement to get the standard strength, it takes 28 days. If a vessel comes with already bagged cement and you start selling and people start using it, it is very dangerous. We are building our death traps in future when we continue to use the Chinese cement imported into Ghana. We don’t have any test certificate to testify that this product will last for this period or has this strength. And they are heavily polluted too. The health of those working with it are in danger. If you open it, the dust emission is too high”, he said.

He added “they also underinvoice whatever they are bringing into the country to attract the low tax. So, there is a lot going wrong and if care is not taken, the cement industry will collapse just like they did to the textile and steal industries”.

“Government must be strict in these areas and make sure that people use locally manufactured cement where controls can be done. The local capacity is enough to meet demand and so they should ban the importation of Chinese cement”.