KHAYAH Cement (Khayah) says it has expended US$25 million over three years to construct its new vertical mill plant.
Augmented by the adoption of new technologies increasing efficiencies, the new plant is set to raise the company’s cement production capacity from 350 000 to 1,05 million tonnes per annum against an average national demand of 1,4 million tonnes.
In an interview on the sidelines of the plant commissioning last week, chief executive of Khayah, Innocent Chikwata, said the new plant’s production efficiencies will reduce the unit cost of cement.
“The pricing of the product has also become topical, but the new plant and the enhanced capacity will significantly lower the price of cement from US$10,35 to around US$9 and that has mainly come from product innovation that we have done,” Chikwata said.
“As we produce more, we are likely to reduce the unit price and we are hoping to then start to see that come through as we fully utilise the new plant.”
Apart from the price knockdown effect, Chikwata said the new plant will be able to produce high-quality cement that was previously imported from Zambia.
“As you know we are quite in a bit of a boom right now because of infrastructure development. The government is playing its part in creating demand for our product with all the dam, and road projects going on,” he said.
“And you still have your individual houses that have always been bigger in our country because most people believe in owning a property and that still continues.
“So the gap between what is required by the market and the supply that was coming was always bridged by imports and it was quite a bit of an import bill.
“With this new plant, we will also be in a position to play our part to reduce that import bill and at the same time ensure that the market is fully supplied,” he added.
According to Chikwata, the construction of the vertical mill plant started in 2020 at the back end of the deadly Covid-19.
“We were wondering how we were going to pull it off. Over time, the issue that we faced was the shortage of foreign currency to see through the project. But I should say the Reserve Bank of Zimbabwe and the ministry of Finance came through for us because at one point we were not even sure if we were going to complete the project.
“Commissioning this plant just shows the level of support the government has given us. The huge impact that you are going see is increased supply of the product in the market,” he further said.
Chikwata said the increased capacity comes with a lot of opportunities in terms of cement distribution for small to medium enterprises.
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