Emmerson Njanjamangezi, Group Features Editor 
LAFARGE Cement Zimbabwe (Lafarge) expects production to double this last quarter of the year as the cement manufacturer ties up its US$25 million capital expansion programme that commenced two years ago.
Following the successful installation of alternative power infrastructure in 2020 and the successful completion of the automated dry mortars (DMO) plant in 2021, the new vertical cement mill (VCM) commissioning started in Q2 2022.
“The company is hopeful that continued collaborative dialogue between government and industry will continue to safeguard business confidence, preserve value and macro-economic stability,”
Additionally, the company has also commenced the refurbishment of silos to increase storage capacity of cement and to end dispatch bottlenecks.
In a statement accompanying half-year results to June 30, 2022, Lafarge chairman Kumbirai Katsande said these investments are expected to raise the company’s cement production capacity significantly.
“The commissioning process of the new VCM started in Q2 2022. The company will essentially double its production capacity and improve raw material availability to the new DMO plant. Launching the new VCM will reposition the company on a growth path into the future. This will positively affect the company’s revenue generation and profitability.
“Binastore and aggregates as with dry motors, are anticipated to post good growth in H2. The overall market demand continues to grow driven by the individual home builders’ segment as well as ongoing major government infrastructure development projects.
“The company is hopeful that continued collaborative dialogue between government and industry will continue to safeguard business confidence, preserve value and macro-economic stability,” he said.
Updating shareholders on the sale transaction of Lafarge, Katsande said Fossil Mines (Private) Limited and Associated International Cement Limited, a member of the Holcim Group, were still working towards the consummation of the sale and purchase agreement.
Lafarge’s inflation adjusted revenue dropped by 23 percent to $6,6 billion during the half year from $8,5 billion in the corresponding period last year. The gross profit margin fell by 21 percent to 37,1 percent from 58,1 percent in the prior period last year as the company resorted to selling clinker, an intermediary product for sustenance.
For the period under review, the volume of cement sold declined by 56 percent versus the same corresponding period last year. This was necessary, as per the first half budget, to decommission one of the existing cement ball mills to make way for the installation of the new VCM. newsdesk@fingaz.co.zw
