Tropical Cable and Conductor Ltd (TCCL) has signed an agreement with CTC Global which holds the patent for Aluminum Conductor Composite Core (ACCC).
This will mean TCCL can manufacture the ACCC conductor to serve both the local and international markets.
The latest agreement elevates TCCL’s already established brand to a different height in the industry having churned out quality products over the last 25 years.
In an interview with Super Morning Show host Kojo Yankson, Managing Director of TCCL , Martyn Mensah and Vice President of Strategic Project, CTC Global, Carl Ulrich saw the agreement as an important milestone in their operations.
Martyn Mensah said the power industry is changing very fast by way of how power is distributed to ensure efficiency and this technology does that.
“It is an advanced form of conductors, not the usual standard ones which have been used for centuries. This takes Ghana forward in terms of efficient mechanism for distributing power. It is a testament of our hard work, vision and continuous striving to remain at the cutting-edge of the industry,” he explained.
This latest feat is viewed as a catalyst to the vision of TCCL being an African giant with products that serve the world.
Signed at Tropical Cable’s plant in Tema, the company is expected to commence production of ACCC conductors by early next year for Ghana and electricity systems across the world.
Despite being in the position to manufacture ACCC conductor, TCCL is building a new shed which is to cost about ¢1 million, acquire more equipment and invest in its quality lab to improve testing at a cost of about $5 million.
With presence in over 50 countries and serving more than 200 utility companies, this agreement affords CTC Global the opportunity to extend its foot print on the continent having focused on Ethiopia, Nigeria and South Africa in the last decade.
Vice President of Strategic Project, CTC Global, Carl Ulrich shares rationale behind this move.
“Africa has numerous opportunities in the area of conductor and infrastructure. We were introduced to Tropical Cable by our local agent. Ghana is a great country for manufacturing and this agreement ensures growth and be part of the global supply chain,” he said.
Asked why CTC Global is still expanding despite world economic crisis, Carl Ulrich responded that “economic aside other challenges present opportunity to invest and work with companies such as Electricity Company of Ghana and Ghana Grid Company and it’s the reason TCCL is a great partner”
On the question of how TCCL attracted such a partner, Martyn Mensah believes the company’s role over the last 25 years in serving large parastatals and Ghanaians through wiring and other projects including rural electrification are some reasons for this deal.
With discussions beginning in 2021, he has no doubt that the timing is right regardless of the turbulence in the economy as the situation is permanent.
Carl Ulrich touching on the way forward with this agreement said the partnership is to ensure utilities benefit from using the ACCC conductor and hopes to get their first project with GridCo which aims to improve the grid.
He cited an instance where a country is saving $11million from a project which was to cost $ 46 million by agreeing to use latest technology from CTC Global.
On TCCL’s part, the future looks great due to countless benefits.
Martyn Mensah quickly added that Tropical Cable through its sister company, Western Rod for about 10 years has been buying molten metal from VALCO and turning it into aluminum rod considering its importance in the value chain.
“By buying this from VALCO, we save ourselves the trouble of importing molten metal before converting it and then ACCC conductor. This helps make Valco sustainable, we save forex and create jobs”
“Government’s quest to add value to the aluminum industry makes sense now and such partnerships like we have signed will help make value chain sustainable,” Mr. Mensah indicated.
He encouraged other companies to use such models to put Ghana in a position to serve the world.
“There is a headroom to grow if basics are in place like logistics in, logistics out, duty regimes making sense, trade facilitation, no bottle necks and be ready to serve customers across the world,” he noted.
Meanwhile, Carl Ulrich envisages an exciting journey ahead for both CTC Global and Tropical Cable.
Persistent call for Ghana to industrialise makes this deal even more important.
