PPC new plant nears commissioning
COMMISSIONING of some sections of South Africa-based cement and lime producer Pretoria Portland Cement (PPC)’s 700 000 tonne per annum mill in Harare is already in progress with the construction work expected to be completed before the end of the year.
PPC Zimbabwe managing director Mr Kelibone Masiyane said construction work of the new mill was at an advanced stage.
In January last year, PPC secured $75 million to expand its Zimbabwe operations, with the bulk channelled towards the construction of the Harare plant. The company already runs two cement manufacturing plants at Cementside in Bulawayo and Colleen Bawn in Matabeleland South but sees the Harare investment as “a modern and efficient mill in the heart of the country (that) will give PPC an added competitive advantage.”
“The construction of our state-of-the-art Harare Plant remains on track for completion at the end of 2016 . . . Commissioning of some sections of the plant is already in progress,” said Mr Masiyane.
He said the company’s cement volume sales were constrained as a result of the depressed economy and imports from neighbouring countries.
“Last year we were supplying a number of projects that have since been completed and this year has been quite subdued comparatively. PPC Zimbabwe remains confident that the economy will turn around.
“There are a number of infrastructural projects on the cards that we believe will take off this year. On a positive note, the retail channel remains quite strong,” said Mr Masiyane.
He said imports have impacted negatively on the company’s as the products land cheaper than locally produced cement because of the stronger US dollar and the higher manufacturing costs in the country.
“During the period in question, there has been a huge influx of cheap imported cement from South Africa, Botswana and Zambia into our border towns and beyond, thereby affecting our sales. However, we put in place strategies in these border towns to fight back and we have regained our market share.
“As a result, we have seen improved sales in the border towns. PPC Zimbabwe is however, grateful for the support received from the Ministry of Industry and Commerce so far regarding imports and will continue to invest to improve productivity and efficiencies in the short-term,” said Mr Masiyane.
He said in the long-term Zimbabwe needs to seriously re-look at the costing of major inputs like power to avert a total collapse of the industry.
“All of our major input costs are higher than those of the region, making it impossible to compete with imports,” said Mr Masinyane.
He said the company’s clinker production plant in Colleen Bawn, which was upgraded in 2014 was operating at optimum capacity.
“The Colleen Bawn clinker plant is now reaping the benefits of investments in modern technology, process optimisation and concerted skills development efforts applied over the years.
“As a result of these initiatives, operational efficiencies have significantly improved. The plant continues to enjoy access to superior raw material deposits thereby giving it a distinct consistent quality advantage over the competition,” said Mr Masinyane.