By Daniel Chigundu
STOCK Exchange listed concern Lafarge Cement Zimbabwe says it is considering a US$25 million capex investment in a bid to double production capacity.
The decision to expand is being driven by growth in product demand in 2018 due to the commissioning of key projects by the government and the private sector as well as housing projects in various suburbs across the country.
Addressing analysts at the company’s 65th annual general meeting, Lafarge Cement Zimbabwe chief executive officer Kaziwe Siame Kaulule said the demand has remained hence the need to improve supply.
“This growth has remained firm into 2019 and the company has begun to put in place key measures to improve supply in order to meet this demand.
“These measures include a capex investment of US$25 million that is being considered by LafargeHolcim Group, subject to availability of foreign currency.
“This is a three-pronged expansion project which will include initiatives in doubling cement capacity, capacity for Agricultural lime production and automation of the dry mortar plant,” he said.
Going into the future, the company’s strategic agenda will be in line with the LafargeHolcim 2022 Strategic Vision “Building for Growth” which will be focusing on four main pillars: growth through winning at the customers, Creating Sustainable Industrial Performance, Restoring Profitability and Building Winning Teams.
Kaulule added that “since January this year, management has actively implemented tactics to support this strategic agenda, which has given the company a strong start to the financial year.
“Outside of this strategy, Lafarge Cement Zimbabwe is actively engaging in mitigatory measures to avert critical challenges being faced with power supply, access to foreign currency and influx of imported products.
“With the resolve of these issues and full execution of the company’s strategic agenda, the company strongly anticipates closing the year on a sound footing and in the lead,” he said-