Displaying items by tag: Zimbabwe
Upgrade works at Sino Zimbabwe Cement
16 March 2015Zimbabwe: Sino Zimbabwe Cement Company is now operating at 60% capacity utilisation following a US$4m investment in a three-phase plant upgrade.
Phase one upgrades were undertaken on the cement mill and rotary kiln in order to boost cement output. The completion of the kiln upgrade has seen Sino Zimbabwe Cement improve its energy consumption and reduce its carbon footprint, while the new high-temperature bag filter system will significantly reduce dust emissions. The second phase of upgrades will target the warehousing and storage facilities and are expected to be completed in 2015. The third phase will be completed in 2016.
"The completion of the first phase boosted clinker production at the Gweru plant. Now we can produce 700,000t/yr," said Industrial Development Corporation of Zimbabwe (IDCZ) public relations advisor Dereck Sibanda. "The amount invested went towards refurbishments of the cement mill, the rotary kiln as well as renewing and automating ancillary equipment."
Sibanda said that cement demand is at its peak and that Sino Zimbabwe Cement will continue its upgrades to improve viability. "The second phase is expected to be complete sometime this year and we are quite confident of our prospects considering the richness of our limestone deposits," said Sibanda.
Sino-Zim is a joint venture company between IDCZ and China Buildings Materials Corporation, which started operating in 2001. The US$4m investment by the Chinese shareholder was to boost output and reduce pollution. Sibanda said that the new technology would help Sino Zimbabwe Cement to reduce its emissions. In 2013, it was fined by the Environmental Management Agency for air pollution.
PPC Zimbabwe invests US$75m on Harare plant in 2015
11 March 2015Zimbabwe: PPC Zimbabwe intends to invest US$75m in 2015 on its Harare cement mill to develop its export market. The mill will be commissioned in the first quarter of 2016 according to PPC Zimbabwe managing director Njombo Lekula. The cement producer is also spending US$6.4m on production upgrades at its Bulawayo and Colleen Bawn cement plants.
Lekula told local press that PPC Zimbabwe's export market had been cut by 40% due to the strengthening of the US dollar. However, he expected the export market to improve in the remainder of 2015.
Zimbabwe: Plans to build a cement plant in Zvishavane by Chinese investors have been challenged as it has emerged that the mining rights in the area belong to Shabanie Mashaba Mines (SMM). This may delay the project as SMM is still the subject of an ownership dispute between the government and South African-based businessman Mutumwa Mawere.
The project was intended to be built 30km from the Zvishavane along the Zvishavane-Mbalabala road, according to local press. It was part of the deals made with China after President Robert Mugabe's visit to China in 2014 as well as negotiations between the Joint Zimbabwe-China Permanent Commission.
Lafarge Cement Zimbabwe plant upgrade on the table
03 February 2015Zimbabwe: Lafarge Cement Zimbabwe is going ahead with plans to upgrade its plant to increase capacity from 390,000t/yr to 450,000t/yr. The upgrade will cost US$15 – 20m, according to Lafarge Cement Zimbabwe CEO Amal Tantawi.
"Lafarge has a nominal capacity. We could produce up to 450,000t, 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," said Tantawi. "The challenges that we are facing are the cement mills that cannot reach this capacity, but we are looking at installing new mills by 2016. Once we do the upgrade, we will be able to operate at maximum capacity of 450,000t."
Lafarge Cement Zimbabwe is in a closed period and is due to release its financial results for 2014 by March 2015. Tantawi said that the year has not been a good one. Group revenue for the half year that ended in June 2014 declined by 12.5% to US$28.2m, while gross profit was US$9.4m, compared to US$14.1m in the same period of 2013.
"Traditionally, the second half of the year has always been better in terms of business growth and the trend is expected to continue in 2015. 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 Lafarge Cement Zimbabwe in a statement.
PPC Zimbabwe secures US$18m for new Harare plant
29 July 2014Zimbabwe: PPC Zimbabwe has secured US$18m for the construction of a new cement plant in Harare Province. The company said that construction of the new plant is currently its main priority.
"Preliminary work at the site is underway and fully-fledged construction is scheduled for August 2014," said PPC's managing director, Njombo Lekula. A road access network to the plant has already been completed and a temporary office is already set up at the site. Public hearings for the Environment Impact Assessment have been concluded, providing the green light for the project to commence.
PPC, which has 1.2Mt/yr of cement production capacity, intends to double its capacity by building a clinker plant in Mount Darwin District in Zimbabwe, as well as cement grinding plants in Harare Province, Zimbabwe and Tete Province, Mozambique. Lekula said that PPC is also looking at investing more in new technology to increase production capacity. According to Lekula, a feasibility study for the construction of a clinker plant and a cement grinding plant in Mashonaland Central Province, Zimbabwe is almost complete.
"We are conducting a feasibility study for the clinker plant in Mashonaland Central, but the plant in Harare is our main priority at the moment," said Lekula. He added that the construction of another clinker plant in Mashonaland Central would go in tandem with the limestone geological studies currently being carried out.
PPC, however, is worried by the performance of its export business. "Currently our plants in Zimbabwe are running at about 70% capacity utilisation and for us to get to decent levels of capacity utilisation, we have to find other markets," said Lekula. "We export to Zambia, Malawi and Mozambique and we continuously look for opportunities in the region." PPC's export business contributes about 20% to its total turnover, but the figure fluctuates. "Our export market margins are impacted by logistics. Sometimes the exports are not very stable hence the need to look at both the local and export markets to ensure sustainability," he added.
PPC Zimbabwe domestic sales drop 5%
06 June 2014Zimbabwe: PPC Zimbabwe reports that its domestic sales for the first five months of 2014 have fallen by 5% compared to the same period in 2013. Managing director Njombo Lekula blamed the drop on a decrease in housing projects.
"For the past few years there has been significant growth in housing, which boosted cement demand, however, the current economic situation is beginning to have an impact on home building activities," said Lekula in comments reported by The Herald.
PPC Zimbabwe now intends to sell its excess production in neighbouring countries. However, Lekula pointed out that Mozambique has a 'very competitive' market due to imports from the Far East via the port of Beira. In addition the cost of logistics to reach this market is an issue for the cement producer. PPC Zimbabwe are also considering targeting Zambia but logistics and the fluctuating price of the Kwacha have posed challenges.
PPC Zimbabwe intends to start building a US$200m cement plant in the north-east of Zimbabwe in 2014. The company has also started constructing clinker grinding plants near Harare and Tete, Mozambique. Currently, PPC Zimbabwe has a cement production capacity of 0.76Mt/yr. The new projects are expected to increase capacity to 1.2Mt/yr.
Zimbabwe: Lafarge Cement Zimbabwe plans to increase its cement production capacity to 0.5Mt/yr once a current plant upgrade is complete, according to an official. At present Lafarge reports a 70% capacity utilisation rate at its Manresa cement plant, producing 0.37Mt/yr.
"Capital to the tune of US$15m has been earmarked to eradicate bottlenecks and to boost volumes," said Lafarge Zimbabwe chief executive Amal Tantawi in an interview reported by the Herald newspaper. Lafarge has spent about US$5m on plant refurbishments over the past five years and it is now focusing on improving the cement production capacity of its existing plant.
Lafarge Zimbabwe is also in the process of conducting feasibility studies to establish a new manufacturing plant to complement the existing one. Tantawi added that Lafarge Zimbabwe was still keen on exporting cement despite a decline in export volumes in 2013. The company has been focusing on the local market since 2013 due to increased demand. Despite high demand for cement Tantawi highlighted liquidity issues with the local economy as the biggest challenge facing Lafarge. To tackle this Lafarge is rolling out different incentives to encourage its customers to make cash payments.
Lafarge Zimbabwe has also launched Supaset cement in the country following its use on other African states. The product is as a fast setting solution for the block making and precast segments of the construction industry.
Zimbabwe: Wang Yong, the managing director of the Sino-Zimbabwe Cement Company, has reported that the joint-venture is on track to complete a US$5m upgrade to the Gweru cement plant in the Midlands province. Once the work is completed the plant's clinker production capacity is expected to double to at least 0.2Mt/yr.
"We are now halfway through the upgrade... We have installed a modern bag filter system to cut emissions. No more thick dust or smoke from the chimney now," said Wang to the Chinese news agency Xinhua. He added that around US$1m was spent on improving pollution control and the rest is being used to refurbish cement mills, rotary kilns, build a cement warehouse and install new packaging lines. The Sino-Zimbabwe Cement Company wants to attract larger investment from China to fund further facility upgrade and expansion. Cement producers in Zimbabwe are set to benefit from increased infrastructure developments if the government's five-year economic plan is fully implemented.
The plant is a joint venture between the Industrial Development Corporation of Zimbabwe and China Building Material Industrial Corporation for Foreign Econo-Technical Cooperation with an initial investment of US$54m. The plant employs more than 400 workers, with 95% from Zimbabwe.
US$50m cement plant for Masvingo
28 January 2014Zimbabwe: Zimbabwe Zhongxin intends to build a cement plant in Masvingo at an estimated cost of US$50m. The company initially wanted to construct the plant in Chimanimani but had to relocate to Masvingo where 'substantial' limestone deposits were found.
Zhongxin Coking is the controlling shareholder in Zimbabwe Zhongxin with a 70% stake, while a local consortium, Qualisave Minerals Investments, owns a 30% stake. The project may commence during the first half of 2014 once the company has obtained all of the regulatory permits. The project has potential to create 400 jobs.
In terms of complying with the indigenisation and empowerment laws, an unnamed source stated that "the Chinese investors are bringing in capital close to US$49.5m and the contribution from the locals is quite insignificant for them to have a controlling interest. As such, negotiations are ongoing with the relevant authorities. The proposal is that the Chinese investors will gradually release some of the shares to the local partners in the coming years."
Zimbabwe's cement market is looking bright, with demand expected to increase thanks to various infrastructural projects on the cards, some of which are already underway. With an infrastructure backlog of US$14bn, the cement demand is expected to grow significantly in the medium to long term.
Zimbabwe: The Sino-Zimbabwe Cement Company has commenced its first phase of upgrading and refurbishing its Gweru factory. Work on the cement mill and rotary kiln is set to increase the clinker production capacity up to 0.2Mt/yr by the end of 2013. A second phase, also due for completion in 2013, will upgrade warehousing and storage facilities. Further upgrade work is planned for 2014.
"We are upgrading the capacity and efficiency of our cement mill so as to meet growing local and regional demand. The cement mill will be modernised with third generation technology that will immensely improve our efficiency and quality of product. This technology is also the first of its kind in Zimbabwe," said the company in a statement.
The Sino-Zimbabwe Cement Company is the product of a joint business venture between a Chinese foreign direct investment partner, China Building Material Industrial Corporation for Foreign Econo-Technical Co-operation (CBMC), and the Industrial Development Corporation of Zimbabwe Limited. CBMC contributed 65% of the original funding in the form of modern technology and expertise while IDC provided land, civil works, manpower and local knowledge. The cement plant has been in operation since 2001.