Zimbabwe: Chinese cement producer Mortal Investments Manufacturing Company is constructing a US$10 million plant in Redcliff with capacity to employ about 400 employees, while producing 1Mt/yr. Its arrival in Zimbabwe is expected to intensify competition in the market dominated by Lafarge Cement and Pretoria Portland Cement (PPC). It will be the second cement producer to invest in the Midlands Province, after Sino Zimbabwe Cement, which is located just outside Gweru.
For a town battling high unemployment levels following the closure of its major source of jobs - the Zimbabwe Iron and Steel Company (ZISCO) - the new project will add life to the town. Redcliff is strategically located for cement producers given its proximity to significant quantities of slag from ZISCO. Redcliff mayor, Freddy Kapuya, said the investment has brought hope to the town. "This will have a positive impact on the lives of the people in Redcliff. The Chinese company bought about 100,000m2 of land from us for about US$600,000 and they have since started constructing a cement plant after investing about US$10 million," he said.
Gift Mpofu, the past president of the Construction Industry Federation of Zimbabwe, welcomed the development, adding that the industry was looking forward to a better product. "As long as they don't produce a dubious or shoddy product, we will support them. This also means that cement manufacturing players will now compete in terms of prices," Mpofu said.
Mortal's interest in Zimbabwe comes a year after Nigerian billionaire; Aliko Dangote announced that Dangote Cement would set up a US$400 million plant in the country, as part of its Pan African expansion strategy. Dangote has already established an operation in Zambia, and his entry into Zimbabwe demonstrates that despite depressed demand, foreign investors are seeing a bright future in the country.
The entry of Mortal and Dangote in the cement industry has resulted in existing players taking steps to cement their dominance in their niche markets. PPC, the largest cement manufacturing company in Zimbabwe, has been working on expansion programmes, with a new plant expected in Harare to serve markets that include Mozambique.
The Zimbabwe unit of LafargeHolcim, is also increasing capacity. Lafarge, the second largest cement producer in the country, says it would continue to make innovations and introduce new products that meet customer needs. Lafarge has introduced a range of new packaging brands for its products.
Sino Zimbabwe has also invested US$2m to boost production at its plant near Gweru.
