Ghana Gas has finalized the acquisition of the Ghana Cylinder Manufacturing Company (GCMC) following financial difficulties that rendered the company unable to meet its obligations. The acquisition, authorized by President Nana Addo Dankwa Akufo-Addo in April 2023, was part of efforts to stabilize the company and strengthen the country’s energy infrastructure.
According to the Auditor-General, GCMC faced significant operational challenges, including a GH¢4 million loss in 2021, continuing a trend of financial instability. In 2020, the company recorded a net loss of GH¢4.06 million, a slight improvement from the GH¢5.19 million loss in 2019, but still deep in the red. These ongoing issues prompted the government to step in, culminating in the acquisition by Ghana Gas, which received approval from the Ministry of Finance and the cabinet.
At a celebratory event in Accra, Herbert Krapa, Minister of State at the Ministry of Energy, highlighted the importance of the acquisition, praising Ghana Gas for its leadership in completing the deal. Krapa emphasized that this achievement was a culmination of teamwork and a series of approvals, starting with the President’s decision to authorize the takeover.
Ghana Gas emerged as the preferred buyer after presenting a compelling proposal that highlighted the potential for growth and stabilization under its management. Several parties had expressed interest in acquiring GCMC, but Ghana Gas’s bid stood out as the most viable.
GCMC had struggled with mismanagement and financial losses for years, but with this acquisition, there is optimism that the company’s production capacity and operational efficiency will improve under the new leadership of Ghana Gas. The move is expected to revitalize GCMC, enabling it to better meet customer demands and operate sustainably.
