Khaya Cement undergoing business transition
LISTED cement producer, Lafarge Cement now trading as Khaya Cement, has said it is increasing its milling capacity and has invested in delivery trucks in order to recapacitate its business going forward.
Khaya Cement acting company secretary, Arnold Chikazhe, in a statement said; “The company has been undergoing business transition following the exit of Associated International Cement Limited in November 2022. It was thus necessary to embark on a short-term rapid high impact plan focused on specific deliverables to stabilise the business.”
The cement manufacturer has done this mainly through capacitation of industrial operations and strengthening of logistics.
Funded through capital injection from the new shareholder, the programme involved expenditure to raise inventory, improve plant availability and modernise the laboratory equipment for quality assurance.
Khaya bought a fleet of bulk tankers to supply cement to large construction projects in the first quarter of 2023 as government contracts continue to push demand.
“The company is optimistic for a much improved performance as the year progresses. This is based on the continued impact of management actions and investments carried out in Q1 2023. The increased milling capacity has created opportunities for the development of high strength cement varieties and consistency,” Chikazhe added.
The cement company in the period under review installed a Vertical Cement Mill which is expected to double the firm’s cement capacity going forward.
“The company’s industrial performance increased with the installation of the Vertical Cement Mill in the third quarter of 2022. This led to increased milling capacity, which has created opportunities for the development of high strength cement varieties and consistent product supply.
“Overall the ongoing expenditure programme aims to capacitate the firm’s industrial operations,” said Chikazhe.
A Vertical Cement Mill is a type of grinder used to grind materials into extremely fine powder for use in mineral dressing processes, paints, pyrotechnics, cement and ceramics.
It is an energy-efficient alternative to a ball mill.
Khaya Cement appointed Innocent Zulu Chikwata as substantive Chief Executive Officer (CEO) following his acting stint which was effective from December 1, 2022 replacing Goeffrey Ndugwa at the helm.
The changes come after Fossil Mining took over control of Lafarge Cement after successfully buying the 76,45 percent stake which had been put up for sale by Swiss headquartered Holcim Group.
Ndugwa had been the substantive CEO for close to a year after having been appointed on December 15, 2021.
With 16 years’ experience in the fast-moving consumer goods and construction materials industries and having worked for Colcom, Innscor Africa Group and LafargeHolcim, Chikwata was seen as a suitable temporary replacement.
Khayah’s business performance in the period under review maintained an upward trend recording an 18 percent in total volume growth across all its operations.
The firm’s net sales improved by 131 percent to $11,1 billion in inflation-adjusted terms against the prior $4,8 billion in the comparable quarter in 2022.
This came as aggregates volume uptake doubled in the period against the same period last year while clinker production declined by 28 percent.
The period also witnessed strong growth in dry mortar products, credited to strong demand for the agricultural lime range Supagrow.
“The sales evolution reflected enhanced production volumes across the business as well as an increase in foreign currency sales.”
The overall market demand continues to grow driven by the segment of individual home builders as well as the ongoing major government infrastructure development projects.
The company is confident that volumes will recover and grow as the availability of cement stabilises.