Displaying items by tag: Zambia

Nigeria: Dangote Cement says that the price of cement from its plants in Nigeria is the same as from plants in other countries in Africa or cheaper. The cement producer made the announcement in response to local media reports that its prices were allegedly lower in Ghana or Zambia, according to the Vanguard newspaper. It added that it had control over its ex-factory prices but that it could not set the end market price.

Dangote Group Executive Director, Strategy, Portfolio Development and Capital Projects Devakumar Edwin explained that Dangote Cement has a 60% share of the local cement market at present. Demand for cement has risen following the coronavirus pandemic and the company has had to suspend exports from its recently commissioned export terminals in order to meet local demand. He added that it has also reactivated its 4.5Mt/yr Gboko plant in Benue State, which was closed in 2018, to cope with the situation.

China: Sinoma (CNBM) International Engineering’s value of new projects grew by 9% year-on-year to US$5.3bn in 2020. Most of these projects came from growth in its construction business segment. However, new project value from its equipment manufacturing business fell by 5% to US$629m. By region, domestic new project value decreased by 3% to US$2.1bn but overseas new project value rose by 19% to US$3.2bn. The engineering company and member of CNBM group also reported that its US$480m project to build a 5000t/day clinker production line in Zambia for Central African Cement remains in the financing stage. The project was originally announced in late 2018.

Zambia: Dangote Cement Zambia says that it has no source of reasonably priced gypsum following the closure of Chambeshi Minerals. The Mast newspaper has reported that other local suppliers are quoting prices for the raw material in US dollars because of currency devaluation due to the weak economic situation following a coronavirus-related lockdown.

The immediate effect of the supply chain disruption has been a rise in cement prices. Copperbelt Provincial Minister Japhen Mwakalombe said, “For us to develop, we need infrastructure development. We can’t build without cement and our people can’t afford these prices. Quoting in dollars shows that gypsum dealers want to sabotage the economy and we need the law to address this. It shows that some companies are not patriotic and do not want to support the government of the day.”

Zambia: Sinoma Mpande Limestone has donated 1000 bags of cement for use in the construction of a new secondary school in Chongwe, Lusaka Province. The People’s Daily newspaper has reported that the community is responsible for a 25% contribution in addition to World Bank funding for the project. District Commissioner Robster Mwanza said that it was “hard pushed to meet this requirement” and that the cement would “go a long way” in helping.

Nigeria: Denmark-based FLSmidth has secured a contract with Dangote Cement for the supply of hot kiln alignment services for 16 kiln lines across Africa. 10 of the lines are installed across three plants in Nigeria, with the remaining six situated in Republic of the Congo, Ethiopia, South Africa, Tanzania and Zambia. The contract will endure until 2026.

Dangote Cement said that it chose FLSmidth to help it achieve ‘uninterrupted cement production and dispatch around the clock. Dangote Group deputy managing director Arvind Pathak said, “The equipment health audits, services, and support extended by FLSmidth have helped us maintain our pyro process equipment with good reliability. Hot kiln alignment is an excellent preventative maintenance strategy.”

FLSmidth says that it conducts 250 hot kiln alignments worldwide annually.

Zambia: The majority government-owned Zambia Consolidated Copper Mine (ZCCM) Investment Holdings has appointed Mabvuto Chipata its chair. ZCCM’s cement division faces the challenge of national overcapacity due to market saturation as it moves ahead with the US$600m construction of a 1.6Mt/yr integrated cement plant and 57MW power station in Masaiti, Copperbelt province. Thierry Charles, speaking on behalf of the Euronext minority shareholders, expressed relief at ‘the definitive turning of a page on several years of hazardous, inconsistent and disastrous investments.’

Zambia: Jimmy Khan, the chief executive officer (CEO) of Lafarge Zambia, has complained about production overcapacity and competition to the president of Zambia. He said that local cement consumption is 2.2Mt/yr compared to production of 5Mt/yr, according to the Lusaka Times newspaper. He made the visit to the president of the country to inform him of a 25% rise in the price of cement. Khan blamed the price hike on business losses.

However, Khan praised the government for its infrastructure development and said that the subsidiary of LafargeHolcim has moved much of its despatches from road to railway. At present the cement producer has a 33% market share. It also intends to continue using the Mpulungu Port in Northern Province to export cement to the east African market.

Zambia: Dangote Cement has denied that it will cut jobs in response to a new sales tax by the Zambian government. The local subsidiary of the Nigerian cement producer clarified comments by its chief executive officer (CEO) Albert Corcos that the new tax would negatively affect production costs, according to the Lusaka Times. The General Sales Tax will replace the existing value added tax (VAT) with a standard 9% rate and a 16% rate for imports. However the new tax has been delayed to September 2019.

Zambia: Zambezi Portland Cement has spent Euro23m on an upgrade to its plant. Chief Executive Officer (CEO) Gomeli Litana said that the upgrade was necessary due to the high demand for cement, according to the Zambia National Broadcasting Corporation. He added that the expansion was likely to reduce the cost of cement.

Zambia: The board chairman of Lafarge Zambia, a member of LafargeHolcim, has announced that Jimmy Khan has become the company’s new CEO, with immediate effect.
Khan holds a Bachelor of Science in Business with a major in Accounting and Information System from Virginia Tech University in the US. His 14-year career with Lafarge / LafargeHolcim has included appointments in Mauritius, Seychelles, Nigeria, France and North America.