Lafarge Cement Zimbabwe, a unit of global cement maker Lafarge, is going ahead with plans to upgrade its plant to increase capacity from 390 000 to 450 000 tonnes per annum.
BY TARISAI MANDIZHA
The plant upgrade would cost between $15 million and $20 million, Lafarge Cement Zimbabwe chief executive officer Amal Tantawi said.
“Lafarge has a nominal capacity. We could produce up to 450 000 tonnes but we do have some challenges that we are working on. Beyond that we want to stabilise and be able to reach our maximum capacity, but that will not come before 2016.
“The challenges that we are facing are the grinders for the cement that cannot reach this capacity, but we are looking at installing new grinders by 2016. Once we put this upgrade, we will be able to operate at maximum capacity of 450 000 tonnes,” Tantawi said.
Although the company is in a closed period and due to release its financial results for 2014 by March, Tantawi said the year had not been a good one for the cement maker.
The group revenue for the half year ended June 2014 declined by 12,5% to $28,2 million while gross profit was $9,4 million compared to $14,1 million in the same period in 2013.
“Traditionally, the second half of the year has always been better in terms of business growth, and the trend is expected to continue this year. Going forward, the construction industry has positive growth prospects premised on the mounting housing backlog and the pressing need for overall infrastructural rehabilitation and development. The company is well positioned to take advantage of the expected growth in the construction sector,” said the group in its half year statement ended June 2014.
