Listed cement maker, Lafarge Zimbabwe, is set to commission a new vertical cement mill plant early next year, a development which will see the company doubling its milling capacity, Business Times can report.
Civil works for the proposed plant have already started.
“The supply contract was signed in August 2020 and the construction of the plant commenced the following month. Civil works for the vertical cement mill have since started and the expected completion date for the project is February 2022’’ Lafarge chairman, Kumbirai Katsande said.
The development comes after Lafarge, a subsidiary of Swiss-based LafargeHolcim, commissioned a Dry Mortars mixing plant in April this year.
In its financial results for the 12 months to December 31, 2020, published last week, Lafarge swung into a ZWL$3.1bn profit from a loss position of ZW$3.5bn in the previous year.
Revenue for Lafarge grew by 68.5% in the reviewed period to ZWL$6.9bn from ZW$4.1bn reported in 2019.
This was attributed to a significant volume growth in the Dry Mortars business and a market shift towards high strength cement which influenced a significant change in the cement product mix.
The production capacity for the Dry Mortars business effectively increased 100,000 tonnes from
7,000 tonnes per annum, making the company the biggest producer of Dry Mortar products in Zimbabwe.
Total assets stood at ZWL$4.303bn from ZWL$4.358bn in 2019.
In the outlook, the company is optimistic about possible opportunities in the infrastructure sector as the government has announced that the 2021 National Budget has a provision of ZWL$4.3bn for infrastructure development. Furthermore, with a good agricultural season, the company sees growth opportunities in the individual home builder segment.