The management of GHACEM has warned that it will be compelled to lay off part of its 200 strong workforce, unless the government carefully considers the factors involved in cement production in the country.

This line of action may be necessary due to the 5 per cent import duty that has been slapped on clinker, one of the main raw materials imported into the country for cement production.

This plus high overhead costs has led to a situation where the cost of their cement is much more expensive than foreign cement, which is imported.

At the moment although the production capacity of the plant is estimated at 1.2 million tonnes per year, the projected output for this year is now 0.75 million.

"This shortfall is attributed to competition from other brands which are cheaper, and should this trend continue we will have no option but to cut down on labour." said the operations manager, Mr Attah.

According to Mr.Bjarne Schmidt, the managing director, in a chat with journalists at the commissioning of new production facilities at the Tema plant, GHACEM has injected $8 million in order to expand and modernise the Tema and Takoradi plants.

At Tema two separators, a 3000-ton silo, an elevator, transport system and a new packing machine have been installed, whilst another separator has been installed at Takoradi, he disclosed.

The new separators will enable GHACEM to produce two different types of high quality cement, the original 32.5 strength Portland cement and the new 42.5 strength type, which is used for sophisticated projects such as high rise buildings.,

The silo will also increase total storage capacity from 6,500 to 9,500 tonnes.

In response to a question about complaints concerning the quality of paper used in packaging, the operations manager said the company has always tried to promote local industry by purchasing paper locally, but sadly the quality of the paper supplied has not been the best, compelling the company to import.