GHACEM Parries Blame. On Price Hike, Shortage

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Dr. George Dawson-Amoah

George Dawson-Amoah, Strategic & Corporate Affairs Director of GHACEM, says the cement manufacturer should not be blamed for the sudden increase in the price of the product on the market.

In an interview with CITY & BUSINESS GUIDE, Dr. Dawson-Amoah attributed the shortage of the product to low production caused by a fault on the main transformer of Diamond Cement Company located at Aflao in the Volta region.

He further noted that Diamond Cement Company controls about 35 percent share of the market and added that the Aflao-based company produces about 32 tonnes of cement a week.

He stressed that the 32 tonnes of cement produced weekly by Diamond Cement translates into about 640,000 bags of cement.

“It is not true that GHACEM has increased the price of our product. The last time we did that was in February this year and since then GHACEM has maintained that price,” Dr. Dawson-Amoah remarked.

Continuing, he stated that even though GHACEM has a contract with its accredited distributors not to publicly disclose the factory price of the product, GHACEM had been compelled to make the GH¢13.34 per bag price known to the public so as to correct the misconception.

Commenting on the product being sold between GH¢23 and GH¢25 on the market, Dr. Dawson-Amoah noted that GHACEM was yet to receive evidence that its accredited distributors were selling the company’s products at such prices.

He blamed the new trend on market dynamics and explained that it was usually determined by the gap between demand and supply, noting that the blame should be laid at the doorsteps of some distributors who were manipulating the market.

He mentioned that GHACEM produces 52,000 tonnes weekly which translates into about 1,200,000 bags of cement.

He stressed that members of the public should rather commend GHACEM for foreseeing the problem about two years ago and increasing its production capacity at the Tema factory.

The new project, expected to be completed in November, this year, is expected to produce about 1,000,000 bags of cement a week to add to the existing 1,200,000 bags produced weekly by GHACEM.

He expressed the hope that the situation at Diamond Cement Company would soon be rectified to avert the price manipulation.

It is unclear whether the current price of cement will remain the same in the long term.

 From Razak Mardorgyz Abubakar

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