Displaying items by tag: Zimbabwe

Zimbabwe: Lafarge Zimbabwe’s chief executive officer (CEO) Siame Kaulule has left the company for a new role with LafargeHolcim in South Africa, according to the NewsDay newspaper. Kaulule was appointed as the head of LafargeHolcim’s Zimbabwe operations in early 2019. He succeeded Amal Naiel, who spent five years in the post.

Zimbabwe: LafargeHolcim subsidiary Lafarge Cement Zimbabwe has announced a planned investment of US$15.0m in a dry mortar production line to diversify its product base. All Africa has reported that construction will begin in January 2020.

The company stated that it will conclude registration of a US$28.5m loan from the reserve bank of Zimbabwe before the end of 2019.

Zimbabwe: LafargeHolcim subsidiary Lafarge Cement Zimbabwe has complained of implied year-on-year inflation of 350% in September 2019 having possible knock-on effects on its business. Company secretary Flora Chinhaire blamed a 19% year-on-year drop in domestic consumption on ‘declining demand from homeowners due to escalating mortgage financing costs’ and the effects of foreign currency constraints on payments to suppliers for capital expenditure projects. All Africa has reported that power supply issues and unplanned stoppages caused a 1% decline in productivity at Lafarge Cement Zimbabwe’s 0.5Mt/yr integrated cement plant, where it operates a single wet production line.

The International Monetary Fund (IMF) has forecasted a 5.3% contraction in Zimbabwe’s gross domestic product (GDP) in 2019.

South Africa: PPC’s sales have fallen due to poor sales volumes in South Africa and Zimbabwe. Its results were also negatively affected by ‘significant’ currency exchange effects between the South African Rand and the Zimbabwean Dollar. Its revenue decreased by 12% year-on-year to US$334m in the six months to 30 September 2019 from US$378m in the same period in 2018. Sales volumes fell by 17% to 2.6Mt. Earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 20% to US$58.6m from US$70.2m.

“The positive operational results in Rwanda and the Democratic Republic of the Congo have partially offset difficult and competitive market conditions in South Africa and Zimbabwe,” said chief executive officer (CEO) Roland Van Wijnen. “PPC has continued its efforts to implement necessary price increases to lay the basis for a sustainable domestic cement industry in South Africa.” In South Africa PPC blamed imports and blender activity for exacerbating a poor local market. It also noted that its fuel costs grew by 30% in the reporting period.

Zimbabwe: PPC Zimbabwe is looking to enter into a partnership with investors to build a solar energy plant of up to 16MW to supply its two plants in Bulawayo and Colleen Bawn. It also intends to have a 28hr battery back-up facility.

The company said that the move to solar would ensure uninterrupted power supplies to its plants, which have been badly affected by the prevailing power shortages in the country. Power utility Zesa Holdings has been forced to ration power in mid 2019 as production at its main hydro-power plant dwindled due to water shortages. Its main thermal power station experiences constant breakdowns due to its old age.

Zimbabwe: A blast at Lafarge Cement Zimbabwe’s Sternblick quarry on 15 August 2019 has killed one person and injured another.

Agence Ecofin has reported that two women were at home on Pangoula Farm, Harare, when debris from the quarry entered through the roof, striking 36-year-old Shupikai Chatsina, who lost her life instantly, on the head. She leaves behind a husband and five children. The second woman, Ms Chatsina’s aunt, is recovering in hospital.

LafargeHolcim’s contractor Afri Mining did not follow established blasting procedures. The disaster is under police investigation.

Zimbabwe: Kyle Wang, the general manager of Livetouch Investments, says that his company is considering plans to build a clinker plant. He said that the Chinese company was holding negotiations with South Africa’s PPC to invest up to US$50m into a joint venture, according to the Chronicle newspaper. Livetouch Investments owns the Diamond Cement grinding plant at Redcliff, which opened in 2017. It sources its clinker from PPC at present.

Zimbabwe: LafargeHolcim has allocated US$25m to LafargeHolcim Zimbabwe to raise its production capacity utilisation. The investment was announced following a meeting between President Emmerson Dambudzo Mnangagwa and Miljan Gutovic, the Middle East and Africa area director for LafargeHolcim, according to the Standard newspaper. The investment will also be used to create additional production capacity for agricultural lime and automation of a dry mortar plant. This latest cash injection follows a US$30m loan from LafargeHolcim.

Zimbabwe: Switzerland’s LafargeHolcim has lent US$30m in the form of a long-term loan to Lafarge Zimbabwe. The company has taken out a short-term loan of US$4.4m from a local bank, according to the Zimbabwe Independent newspaper. In its financial results for the 2018 the cement producer reported that its revenue grew by 24% year-on-year to US$72m in 2018 and that its profit before tax grew strongly to US$4.4m.

Zimbabwe: South Africa’s PPC says that its business in Zimbabwe has remained resilient despite the economic ‘challenges’ experienced over the last year. It said that it had kept its pricing in line with inflation and that demand remained ‘strong.’ Its cautionary measures in the country include: keeping 90% of input costs locally sourced; increased exports; continuing clinker imports from South Africa; and share purchases of PPC on the Zimbabwe Stock Exchange. Previously, PPC reported that growth had been low in Zimbabwe in 2018.