Tanga Cement, Tanzania’s second-largest cement producer, said it plans build a second kiln line as it aims to increase exports to member states of the East African Community trade bloc.

The new kiln will increase clinker capacity from 500,000tpa to 600,000tpa and is planned to be commissioned in the first quarter of 2015. FLSmidth of Denmark has since confirmed that it is negotiating a contract with Tanga, but stated that: “If and when the contract is finalised and becomes binding, we shall immediately inform the market.”

Tanga Cement, which also trades as Simba Cement, said full-year 2011 profit fell TZS22bn (US$14m), down 31 per cent on higher production costs. Revenue rose eight per cent to TZS161bn.