Officials of Dangote Cement Limited say the prevailing stability in the prices of cement in the country can be atttributed to the significant contribution of the company in the sector.
The Chief Executive Officer (CEO) of the company, Mr Tor Nygard, said as a customer-driven entity, its ambition was to become the most reliable supplier of cement in the country.
He, therefore, described attempts by the Cement Manufacturers Association of Ghana (CMAG) to create the impression that the company was involved in an unfair business practice as a smear campaign to create disaffection for the company.
Addressing the media in Tema yesterday in reaction to concerns raised by the CMAG, Mr Nygard expressed worry that a member of the association which had previously labelled Dangote’s highest grade of 42.5R cement brand as an inferior product also introduced a similar product in July, 2016.
Accusations
The CMAG, at its recent press conference, claimed that companies such as Dangote, SOL and Fujian of China and Korea respectively had been importing tonnes of cement into the country despite persistent assurances by manufacturers in the country that they could produce to meet local demands.
Mr Nygard has, however disputed the claims, saying, “If the local manufacturers had the capacity, how come the country recorded severe shortages in the past?”
“A member of the CMAG in an infamous Television commercial claimed our product was inferior, yet, today, they have been compelled by market trends to hurriedly introduce the 42.5R grade, although the product is more available in newspaper adverts and on billboards than on the market”, Mr Nygard alleged.
Tax evasion
He further claimed that some members of the association, in their attempt to frustrate his company from operating in the country, resorted to a smear campaign against the company by petitioning various governmental agencies in 2010 that his outfit was engaging in unfair trade practices, including the non-payment of approved tariffs. He said the situation led to an increase in the initial five per cent tax rate to about 100 per cent for the company’s bulk import.
“We want to have it on record that we pay customs levies, Value Added Tax (VAT) and all other necessary taxes. The impression being created is that because of the ECOWAS Trade Liberalisation Scheme (ETLS), we do not pay any penny on our imports; this is inaccurate”, Mr Nygard stressed.
Clinker importation
“It is important to note that Nigeria is producing its own clinker which is the raw material for the production of cement, and all the major cement manufacturers are importing clinker to Ghana. This is one critical reason a similar call for a ban on the importation of cement into Ghana is rather misplaced”, Mr Nygard stated. According to the CEO, the company also adds value to its bulk imports at its Tema plant.
Similarly, he said appropriate environmental control measures had been put in place to avoid fugitive emission of cement during loading, transporting and unloading.
“If we do not add value, what will we be doing with over 700 workers that operate at the plant?” Mr Nygard queried.
Choices
“We at Dangote Cement have established ourselves in Ghana to offer the public an alternative to the present brands in the country, and it is up to the public to choose which brand they prefer to buy”, he stated.
The CEO added, “We are not afraid of competition. We believe it is healthy and benefits the customer and we will continue to supply high quality cement at competitive prices to our customers.”
Reaction
When a member of the CMAG, Ghacem, was contacted for their reaction, the Director of Corporate Affairs at the company, Dr George Dawson Amoah, said they could only respond to the claims after studying the claims made by Dangote.
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