KHAYAH Cement, formerly Lafarge Cement, commissioned a new Vertical Cement Mill (VCM) at its Manresa plant. The mill is set to boost the company’s milling capacity, while also reducing production costs. Our Features Editor Emmerson Njanjamangezi (EN) sat down with the company’s chief executive, Innocent Chikwata (IC), to understand how the VCM was put together. Below are excerpts from the interview.
EN: When did the VCM construction start?
IC: This journey started in 2020. The journey was very difficult because it was at the back end of Covid-19 and we were wondering how we were going to pull it off. Over time, the issue that we faced was that of adequate foreign currency to see through the project. But I should say the Reserve Bank of Zimbabwe and the ministry of Finance and Economic Development came through for us. I remember at one point we were not even sure if we were going to complete the project. But to be standing here today to commission this plant just shows the level of support the government has given us.
EN: What sort of impact do you expect from the VCM?
IC: The huge impact that you are going to see is increased supply of the product in the market. 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. 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 that 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 a import bill. With this, 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 when it comes to product.
EN: Will the new VCM create opportunities for small businesses?
IC: With that comes a lot of opportunity in terms of cement distribution. I know we are onboarding new distributors and creating employment in different areas where we have not been but we are identifying people locally who can start selling our cement and we support them. That’s also creating a ripple effect of employment.
EN: How about pricing, will the new mill lower the cost of cement?
IC: The pricing of the product has also become topical, and everyone has been talking about it. When I joined in 2017 the price of cement was around US$10,35. But now, the 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 a lot from product innovation, and product processing that we have done as a company and we will continue on that path.
Obviously, 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.
EN: In terms of capital outlay from when you started the project, how much have you put into it?
IC: This has been a US$25 million project. The project started in 2019. That’s like three years since we started it.
EN: What has been the input of CBMI as the technical partner on this project?
IC: CBMI’s contribution has been huge. This being a new technology, it also was a challenge for them to figure out how we go about this. But they have been really helpful because them being here, our benefit has been skills transfer to local artisans and engineers.
China as a country has probably the most cement plants per square metre, I would say, and so they naturally come with a lot of experience and our team has greatly benefitted from that.
It is not just our team benefitting but really, it’s the cement industry because when you train an engineer in cement you have added someone to a pool that any of the companies locally can fish from. So that has been an immense contribution that the technology, collaboration, and skills transfer has been to us as Khayah and the local cement manufacturing sector.
EN: The new plant, what else does it do?
IC: This is only a cement plant. The Vertical Cement Mill gives you a wider range of cement types that you can make. We are now able to make the higher strength cement like your 42,5, like your 52,5 which previously we had no capability of doing. The lime side is the dry mortar plant that the President commissioned in 2021. That’s a separate plant from this one.
EN: The VCM is done and now operational, how excited are you with this new development after waiting for three years?
IC: For me, this is a victory for the local cement manufacturing sector, it’s not just for Khayah. You know it’s one industry that can really be under pressure. For me, I celebrate it from a cement industry perspective rather than from just a Khayah perspective.
This is because we all owe it to the country to make sure we are fully supplied with cement and that people get it at a good price. So, when we can only add to what the cement industry can do, I think it reduces the pressure even on our parent ministry in terms of the import bill.
EN: The shareholding structure of the company has changed from foreign-owned to locally owned. What’s been your impressions of the new structure?
IC: Having local shareholders is a big difference and it comes simply from them being part of the community. When you solve problems from outside it’s different from solving from inside.
When solving problems for a community that you are part of you are very clear on the issues and how to solve those problems. This is because you walk the same journey as the people you are solving the problem for.
So, you pretty much appreciate it from a different perspective and I should say we have visionary majority shareholders who are very clear on their patriotic duties and we are driving in that direction to also see that Khayah plays its part in the NDS 1 storyline.