Displaying items by tag: Zimbabwe

Zimbabwe: Huaxin Cement has invested US$15m in a new manufacturing plant in Zimbabwe, according to Bulawayo 24 News. The company has set up a subsidiary Huaxin Zimbabwe, to oversee operations. Huaxin Zimbabwe director Clemence Gomba said that the initial capacity will be 300,000t/yr, potentially increasing to 1Mt/yr if lime reserves are accessed, adding that he wanted “Zimbabweans to get cement at their doorsteps.” The plant will serve both local and export markets. Huaxin plans to employ five Chinese nationals and 200 local people.

Company CEO Mr Chen said “We started construction of the site last month [September 2024] and we hope to finish by the end of November 2024. In December 2024, we will start the production of cement. The plant will start with a production capacity of 25,000t/month of cement, we will mainly be manufacturing 32.5 and 42.5 cement. We hope to satisfy the local market so that we can reduce our imports. We hope to find some limestone reserves so that we will not be importing any clinker.”

Industry and Commerce Minister Mangaliso Ndlovu toured the site, saying that Zimbabwe is experiencing a surge in imports mainly from Zambia and South Africa, a reflection that local production is ‘not satisfying’ the market.

Zimbabwe: Bulawayo City Council has granted approval for China-based Labenmon Investments to establish a grinding plant, expected to employ over 500 people, at Umvumila Industrial Park. Once operational, the facility will produce 900,000t/yr of cement, and plans to export to regional markets including Zambia, Botswana, and Mozambique. The grinding plant was previously planned for Cowdray Park, also in Bulawayo, but the application was rejected in July 2024.

The council report reads “The establishment of a cement mixing plant is expected to benefit Bulawayo Metropolitan Province and other provinces in many ways, such as increased supply of cement, employment for more than 500 local people, increased export earnings for the province, enhanced technology and better equipment for the domestic cement industry in Zimbabwe.”  

Zimbabwe: The Zimbabwe National Water Authority (ZINWA) has addressed public concerns about the potential environmental impact of a new US$1bn cement plant being established in Magunje by Labenmon Investments and West International Holdings. Amid fears of pollution to the nearby Kemureza Dam, ZINWA has assured residents that the project will not compromise the water source that serves over 10,000 people.

During an Environmental Impact Assessment (EIA) consultation in Chinhoyi, ZINWA’s head of corporate communications and marketing, Majorie Munyonga, emphasised that the cement plant will rely on boreholes for its water needs, thereby safeguarding the dam. The project is currently undergoing further EIA stakeholder consultations to integrate community and environmental considerations.

The Herald newspaper has reported that the initiative by Labenmon Investments is expected to generate around 5000 jobs. However, the Zimbabwe National Organisation of Associations and Residents Trust (ZNOART), representing the concerns of Magunje and Hurungwe residents, has petitioned for a reassessment of the site to mitigate any adverse impacts on the local ecosystem, health and livelihoods. It has stressed the importance of compliance with the Environmental Management Act and the Zimbabwe National Water Authority Act.

Zimbabwe: Khayah Cement plans to invest approximately US$25m in capital expenditure in 2024, focusing on a kiln refurbishment project at its plant in Harare. The investment aims to increase production capacity and sales volumes, NewsDay Business News has reported. Preparatory work has begun, with completion expected by the end of 2025.

Khayah Cement's CEO, Innocent Chikwata, said that the project will address issues with its current equipment and stabilise the company’s operations by ensuring a reliable supply of raw materials. He noted that the plant's current capacity utilisation rate is 60%, with a target of 70% by the end of 2024.

Southern Africa: PPC has entered a strategic cooperation agreement with Sinoma Overseas Development to improve efficiency, modernise technology, cut production costs, shift to alternative fuels and expand capacity in PPC’s operations in South Africa, Zimbabwe and Botswana.

Zimbabwe: Bulawayo City Council has turned down Labenmon Investments' application to establish a cement grinding plant in Cowdray Park, citing ‘significant’ environmental risks. The plant had an expected output of 900,000t/yr. The council stated the proposed site's proximity to residential areas posed potential pollution hazards, leading to the suggestion of relocation to Umguza District. Concerns were also raised regarding the choice of a foreign company over local alternatives like PPC Cement.

Zimbabwe: Khayah Cement has reported a significant increase in sales volumes across its operations for the year ending 31 December 2023. Dry mortar product sales volumes surged by 153%, bolstered by the demand for the Supagrow agricultural lime range within the government's Pfumvudza agriculture programme, absorbing 0.34Mt during the period. The firm's cement business also saw a 34% year-on-year increase in sales volumes following the installation of a vertical cement mill in the third quarter of 2022.

Despite challenges such as power quality issues and equipment breakdowns impacting production, bulk cement volumes grew from 1% to 4% during the period. However, clinker production volumes fell by 21%, mainly due to the mothballing of the kiln in the last half of 2023.

The company said “A total of 1000 hours were lost as a result of the unplanned breakdowns which in turn impacted negatively on both clinker, cement production and sales volumes and with it profits and cash generation.”

Zimbabwe: PPC Zimbabwe says that a planned fly ash beneficiation project at a power plant in Zimbabwe will now take place in early 2025 instead of in 2024. This is due to delays in accessing the power plant to complete the design and commercial contract, according to the cement producer. The Chronicle newspaper has reported that, as a result, PPC Zimbabwe’s capital expenditure investments so far in 2024 are behind its previous full-year guidance of US$31.8m.

South Africa: PPC’s revenue grew strongly in the 10 month period to 31 January 2024 mainly due to sales growth from its subsidiary in Zimbabwe. Revenue also mounted in the group’s South African and Botswana cement business, where prices rises offset falling sales volumes. Earnings grew across the business. The company said that sales volumes in the coastal region of South Africa “experienced a sharper decline than in the inland region, mainly due to a weaker retail market and a lack of infrastructure projects in the area.” It added that the performance in group’s South Africa and Botswana units had further deteriorated in February and March 2024. In Zimbabwe sales benefitted from both residential construction and government funded infrastructure projects, constrained imports and a low base in the previous reporting period.

PPC completed the sale of its 51% stake in Rwanda-based Cimerwa to Kenya-based Devki Group subsidiary National Cement in late January 2024.

Zimbabwe: Khayah Cement (formerly Lafarge Cement Zimbabwe) more than tripled its sales year-on-year to US$17.4m in the first half of 2023, from US$4.8m in the first half of 2022. During the year, the producer more than doubled its cement volumes, after repairing a collapsed mill roof and commissioning of a new vertical roller mill at its Manresa cement plant. Nonetheless, its loss grew by a factor of six to US$46.2m from US$7.2m.

Khayah Cement began making foreign currency sales, which accounted for 89% of first-half sales, in 2023. The company previously postponed the publication of its results for the half year following delays in finalising external audits.