US$50m cement plant for Masvingo

Print this page

Zimbabwe: Zimbabwe Zhongxin intends to build a cement plant in Masvingo at an estimated cost of US$50m. The company initially wanted to construct the plant in Chimanimani but had to relocate to Masvingo where 'substantial' limestone deposits were found.

Zhongxin Coking is the controlling shareholder in Zimbabwe Zhongxin with a 70% stake, while a local consortium, Qualisave Minerals Investments, owns a 30% stake. The project may commence during the first half of 2014 once the company has obtained all of the regulatory permits. The project has potential to create 400 jobs.

In terms of complying with the indigenisation and empowerment laws, an unnamed source stated that "the Chinese investors are bringing in capital close to US$49.5m and the contribution from the locals is quite insignificant for them to have a controlling interest. As such, negotiations are ongoing with the relevant authorities. The proposal is that the Chinese investors will gradually release some of the shares to the local partners in the coming years."

Zimbabwe's cement market is looking bright, with demand expected to increase thanks to various infrastructural projects on the cards, some of which are already underway. With an infrastructure backlog of US$14bn, the cement demand is expected to grow significantly in the medium to long term.

Last modified on 29 January 2014

Register for the Global Cement Weekly email newsletter

Global Cement Weekly is Global Cement’s weekly email newsletter. Keep up to date with cement industry news, analysis, diary dates and news of people in the sector.

Register >

URL: https://globalcement.com/news/item/2243-us$50m-cement-plant-for-masvingo

© 2024 Pro Global Media Ltd. All rights reserved.