July 19, 2024
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GSA to shut down cement factories using inferior materials

The Ghana Standards Authority (GSA) is preparing to close down some cement manufacturing firms that are producing at a low quality.

The move is part of a larger effort to crack down on substandard cement production across the country and protect consumers in accordance with the Ghana Standards Authority Act 2022.

Currently, there are only 14 licensed cement factories operating in the country.

But speaking to JoyNews, the Director General of the Authority, Prof. Alex Dodoo said some of the factories are using poor quality materials to produce their products.

According to him, the development is unacceptable.

“The Standard Authority has done research and we have noticed that some particular players believe that the only way to compete is to reduce the quality of cement.

“We have closed up three of them and I can assure you that in the coming days a lot more will be closed down because if there is one thing we will not compromise on, that is quality,” he stressed.

Prof Dodoo, who is also the chairman of the Cement Manufacturing Development Committee tasked to develop a framework to regulate the pricing of the product, explained that the newly proposed legislation aims to ensure transparency in the industry.

“Indeed, all players have agreed and we know the cost build-up; clinker is key, energy is key and exchange rate is key.

“I believe that the whole purpose of the legislation is to promote openness and transparency in cement prices and cement manufacturers have indicated that there are some taxes that must be reviewed.”

On his part, the Chief Executive Officer of the Cement Manufacturers Association, Dr. Dawson Amoah said members of the association are ready for a dialogue.

“I am a consumer myself and it is not out of fun that manufacturers get up and increase prices. Anytime there is a price increase, it is really with reluctance because they feel the effect.

“But they don’t have any other option but to do so.. so rather, I will reiterate that whatever efforts the minister wants to put in regulating the prices, be put on hold and I will rather suggest that there should be a dialogue to see how we can stabilize cement prices.”

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