Zimbabwe: PPC Zimbabwe has hinted that it may be looking to shut down its Colleen Bawn Cement plant in Gwanda, citing pressure from cheaper imported clinker as well as smuggled cement coming over the border. If it decides to close the plant, the move would represent a significant blow for PPC Zimbabwe and PPC’s wider activities outside of its native South Africa.
The management has appealed to the government for protection, stating that, unless measures are put in place to curb cheap imports, the firm risks losing its investment at Colleen Bawn. It estimates that a wider community of around 4000 rely indirectly on the plant for their livelihoods. The plant has been in operation for more than 70 years.
Country managing director Mr Kelibone Masiyane said, “The cost of production is very high in Zimbabwe when compared to the rest of the region. Our competitors are importing clinker at cheaper cost and they are jumping the production process. The biggest challenge here at Colleen Bawn is that we incur huge costs producing clinker and because of this there is a risk of closure of the plant and opting to import clinker as well.”
However, Masiyane expressed confidence that the engagements PPC Zimbabwe was having with the government would result in ‘fruitful’ interventions that would protect the firm and avert negative effects. He said that the company’s major cost driver was electricity costs, which are much higher than in neighbouring countries.
In response Deputy Minister Mabuwa said that the government appreciated the strategic economic role of the cement manufacturing sector and would address the plight of PPC. She concurred that, while cement was removed from the open general import license, continued clinker imports were having a negative effect on the value chain.
