PPC focuses on competitiveness

CEMENT producer, PPC Zimbabwe says it has had to come up with new products to find new export markets in the region as it tries to counteract a lack of competitiveness arising from high costs of production in the country.Zimbabwe’s cement manufacturing sector has been hit hard by high production costs in the country, and has lost lucrative markets to regional competitors.
“Our biggest issue, being a bulk cement producer, is that the cost of production in Zimbabwe is quite high, both from a mining point of view to a logistics – inbound and outbound – point of view. That makes us very uncompetitive.

“So, we have had to engineer our products… such that if we have a product that no one else can make… at least we know that there will be a market for it. But because of that heavy cost base our exports have really come down significantly in value,” PPC general manager sales and marketing Nkosana Mapuma told a business meeting in Harare last week.
“If that (high-cost environment) can be addressed, I think that export growth in Zimbabwe, in particular in the cement sector, will be quite high”.
In its results for the half-year to September 30, 2021, the cement-maker was more upbeat about prospects for local retail sales.
“PPC Zimbabwe continues to trade ahead of expectations despite the challenging macro-economic environment,” the company said.
It has planned investments worth over US$60 million for 2021, including the construction of solar farms at its Bulawayo and Gwanda cement factories.
Kelibone Masiyane, PPC’s managing director recently told this publication that the company has already procured land for the 42-megawatt solar projects, on which it expects to spend US$50 million.
Masiyane said the company will also invest US$5,2 million on environmental sustainability initiatives at the Colleen Bawn factory in 2021.
Other projects lined-up for next year include an investment in raw material processing valued at over US$4 million and another project at Shamva Mine with an estimated cost of US$1 million.
Meanwhile, PPC expects total group cement sales volumes for the six months ending September 30, 2021, to increase by 10 percent to 13 percent year-on-year, with double-digit volume growth in most business units.
Total cement sales are expected to increase by six to nine percent relative to the comparable period in 2019.
PPC expects cement sales volumes in the region to increase by 10 percent to 13 percent year-on-year for the six months ending September 30, 2021, due to strong retail demand. newsdesk@finga