Tanzania Portland Cement Company (TPCC), part of the HeidelbergCement group, posted a 45.6 per cent drop in first-half profit after increased competition forced down local cement prices.

TPCC reported net profit of TZS12.35bn (U$5.5m), down from TZS22.71bn a year ago. The producer's revenue of TZS119bn was down 16 per cent YoY, Chairman Hakan Gurdal said in a statement. Mr Gurdal added that the decline was mainly because of the lower prices in an increasingly competitive market.

Mr Gurdal said that TPCC would continue to implement "strict cost controls" to reduce cost of sales and administrative expenses.

"The market situation remains challenging, but TPCC will continue to work to maintain its market leadership," he said.

Annual cement production in Tanzania is about 10Mt, roughly twice the level of demand, with the surplus exported to eastern and southern African markets, reports Reuters.

The cement maker, which is 69.25 per cent owned by HeidelbergCement through Scancem International DA, holds about a 36 per cent market share in Tanzania.