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News Zimbabwe

Displaying items by tag: Zimbabwe

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Lafarge Cement Zimbabwe reports cement demand increase leading to shortage

27 November 2020

Zimbabwe: LafargeHolcim subsidiary Lafarge Cement Zimbabwe has said that cement demand has increased by 34% quarter-on-quarter in the third quarter of 2020 following the end of the national coronavirus lockdown. Business Weekly News has reported that the company said that cement demand in July 2020 was the highest in that month since July 2003 due to a 7% year-on-year sales rise.

Company chair Kumbirai Katsande said, “As business activity progressively continued to gain momentum into the third quarter of 2020, the demand for cement consequently outstripped supply, causing considerable supply backlog.” Katsande said that the shortage will ease as demand decreases “associated with rainfall” in the fourth quarter of 2020.

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Zimbabwean government body lifts Diamond Cement prohibition order

17 September 2020

Zimbabwe: The National Social Security Authority (NSSA) has lifted a prohibition order which it issued to Livetouch Investments subsidiary Diamond Cement after the death of a worker on 6 March 2020 at the company’s 0.4Mt/yr Redcliff grinding plant. The incident brought to light “sub-standard safety and security arrangements.” The Chinese-owned company had also failed to register any employees under the NSSA’s Workers’ Compensation Insurance Fund (WCIF) and the National Pension Scheme (NPS).

The New Zimbabwe newspaper has reported that the NSSA lifted the prohibition order in mid-September 2020 after the company was found to have complied with its registration and safety requirements. NSSA communications officer Tendai Mutseyekwa said, “After a joint visit by the NSSA’s Occupational Safety and Health Inspectorate and the Compliance Inspectorate, the company registered with the NSSA schemes. They subsequently settled their subscriptions for the two NSSA schemes from the effective date of 4 April 2017, when the company started operating.”

A police investigation into the fatality continues.

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Lafarge Zimbabwe and CBMI sign grinding plant contract

10 September 2020

Zimbabwe: LafargeHolcim subsidiary Lafarge Zimbabwe and China National Building Materials (CNBM) subsidiary CBMI have announced the signing of a contract for the establishment of a 0.7Mt/yr-capacity grinding plant at the 0.5Mt/yr Manresa cement plant in Harare. CBMI executive director and general manager Tong Laigou said that, when completed, the plant “will significantly increase the market occupation rate, competition and influence power of Lafarge Zimbabwe, and will also ease the cement supply tension in the country.”

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PPC delays publication of annual results for second time

19 August 2020

South Africa: PPC has delayed the publication of its annual results for the year to 31 March 2020 for a second time due to a “restructuring and refinance project.” It now expects to publish the results by late September 2020. It previously delayed reporting its financial results when the Johannesburg Stock Exchange allowed it to delay releasing the figures because of challenges created by the coronavrius pandemic. The cement producer also said it has found errors in its financial reporting for the year that ended in March 2019 due to mistakes made in valuing operations in Ethiopia and Zimbabwe and a miscalculation of the accounting of a foreign-exchange transaction in the Democratic Republic of Congo (DRC).

The group expects that revenue for the year to 31 March 2020 will decline by no more than 5% year-on-year from US$605m in the same period in 2019. Earnings before interest, taxation, depreciation and amortisation (EBITDA) are expected to fall by up to 20% from US$113m.

In an operational update for April to July 2020 the group said that it ramped up cement operations in May 2020 following the relaxation of coronavirus-related lockdowns in most of its territories. It attributed strong growth in cement sales volumes in June and July 2020 due to a reduction in imports as well as pent-up demand. Similarly, sales volumes were strong outside of South Africa, particularly in Zimbabwe and Rwanda, and in the DRC to a lesser extent.

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Environmental agency orders Lafarge Cement Zimbabwe to shut Harare plant due to dust emissions

19 August 2020

Zimbabwe: The Environmental Management Agency (EMA) has ordered Lafarge Cement Zimbabwe to stop operations at its integrated Harare plant due to abnormal dust emissions. As part of the order the plant has been requested to notify local stakeholders and the community of any new developments or incident that may affect them, according to the NewsDay newspaper. It will also be required to report daily dust emissions readings to the EMA every two weeks.

The cement producer said it experienced an unexpected surge in dust emissions during a trial of using saw dust as an alternative fuel at the plant between July 30 and 1 August 2020. It added that immediate action was taken to control and contain the emissions and the incident was reported to EMA in line with regulatory requirements.

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PPC Zimbabwe finds investor for solar power plant project

06 July 2020

Zimbabwe: PPC Zimbabwe has announced that it has entered into a preliminary agreement with a Zimbabwe-based energy investor “with technical partners in South Africa” that will build and operate the company’s planned 32MW solar power plant in Matabeleland South. 16MW will power PPC Zimbabwe’s cement production and the rest will be fed in the national electricity grid, according to the Herald newspaper. The unit will be located adjacent to PPC Zimbabwe’s 0.5Mt/yr integrated Colleen Bawn plant.

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Lafarge Cement Zimbabwe increases profit by 4.8% to US$178m in 2019

02 July 2020

Zimbabwe: LafargeHolcim subsidiary Lafarge Cement Zimbabwe has reported a profit of US$178m in 2019, up by 4.8% year-on-year from US$170m in 2018. Inflation-adjusted sales rose doubled to US$919m from US$449m. Cement volumes remained level at 323,000t. The company said that it, “recorded its best financial performance in over five years. The construction of a US$2m dry mortar mixing plant was completed and installation of the equipment on site is set to be completed in the second half of 2020.”

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Lafarge Cement Zimbabwe predicts 30% demand drop in 2020

20 May 2020

Zimbabwe: Lafarge Cement Zimbabwe has predicted a 30% year-on-year decline in sales volumes in 2020 due to the coronavirus pandemic. All Africa News has reported that Lafarge Cement Zimbabwe is expecting to rely on foreign investment-led projects to stimulate a base level of cement demand to sustain the company’s operations.

Lafarge Cement Zimbabwe said, "The ripple effects of the lockdown and border closures are still to be fully quantified, but the business expects to continue to feel the effects of the COVID-19 outbreak into the second half of 2020."

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PPC’s South African cement sales down by 95% year-on-year in April

04 May 2020

South Africa: PPC has reported a predicted 95% year-on-year decline in its sales of cement in South Africa in April 2020 due to the impacts of the coronavirus. Sales in Rwanda and Zimbabwe, where production resumed in mid-late April 2020, are expected to decrease in the month by 80-85% year-on-year.

PPC says that PPC South Africa is preparing to resume production in line with the government’s risk-based regulations announced on 25 April 2020. The group said, “The uncertainty around the further development of the containment of the coronavirus makes it necessary for PPC to work with various scenarios.”

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Sino-Zimbabwe Cement Company and LiveTouch Invest plan US$30m grinding plant in Hwange

30 March 2020

Zimbabwe: China-based Sino-Zimbabwe Cement Company and LiveTouch Invest, owner of Diamond Cement Zimbabwe, have acquired a six hectare site in the coal mining area of Hwange, Matabeleland North Province, and announced a planned investment of US$30m in the construction of a grinding plant which will grind clinker with waste materials from coal extraction to produce cement.

LiveTouch Invest had previously mooted the idea of a Zimbabwean clinker plant joint venture with South Africa-based PPC in July 2019.

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