TPCC Annual Report 2008.indd - HeidelbergCement

Administrative costs were affected by increased number
of staff and changes in the voluntary agreement with the
union, while selling and marketing costs were effectively
contained. Depreciation costs went up as a result of the
completion of the first part of the expansion project.
TPCC has to a larger extent than planned financed the
expansion project from own cash flow. Only 20 million
USD of external finance had been used by the end of
2008 and no further utilization of the available credit line
is planned. Interest costs related to the expansion project
is capitalized in line with recent changes in international
accounting standards.
Net profit for the year (after corporate income tax) ended
on 35 billion TZS, an increase of 16% compared to 2007
and a result that I am very satisfied with.
Other issues
In order to meet the growth in both the market and in
our production capacity we increased our work force by
a net of 33 colleagues in 2008. Since the new produc-
tion line in technical terms is state of the art, we have
had a strong focus on training; both in-house and we sent
employees (16) to other cement companies within the
HeidelbergCement Group. The training will continue also
this year, however most of it in-house.
Tanzania Portland Cement Company Ltd, Annual Report 2008
In TPCC we remain generally optimistic about our long
term prospects. The international financial crisis and the
slowing world economy are, however, causes for concern.
We do not expect Tanzania to remain untouched by these
international developments and we foresee that the mar-
ket for building materials in Tanzania and the wider region
will slow in the second half of 2009 and into 2010.
The extraordinary lengthy legal process against the
933 trespassers occupying the Company’s land has not
reached a conclusion in 2008. After TPCC won the case
in October 2006 after a five year legal battle, the appeal
process now seems to take an equal amount of time.
Conclusion
As a summary, 2008 was yet another very good year for
TPCC. With new and increased production capacity and
with a highly committed and well trained staff combined
with a growing demand for our cement we are confident
that the very impressive financial performance will con-
tinue in the years to come.
The 5-stage pre-calciner tower under construction View of the pre-calciner tower under construction
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