Sino-Zim disposes of Allied Insurance shares

CEMENT manufacturer, Sino-Zimbabwe Cement company (SinoZim) on Wednesday said it was disinvesting from Allied Insurance Company, and will dispose of its entire block of shares in the firm.

SinoZim holds 1 499 700 shares in the insurance firm, being 4,941% of the issued share capital.

“Allied Insurance Company is a non-listed insurance concern. The company intends to disinvest from and dispose of the entire block of shares it holds in Allied Insurance Company,” the company said in a notice.

“The indicative selling price of the block of shares is US$63 767,37 which was the amount invested. The other currently existing shareholders hold the right of first refusal over the shares on offer.”

Sino-Zim invited expressions of interest for the shares.

Sino-Zim is one of the major cement producers in the country which include PPC Zimbabwe and Lafarge Cement Zimbabwe.

Together, they have a combined installed capacity of 2,4 million metric tonnes of cement, 54% more than current demand estimated at 1,3 million tonnes.

The cement manufacturer is a joint business venture between a Chinese Foreign Direct Investment Partner, China BuildingMaterial Corporation for Foreign Econo-Technical Co-operation (CBMC), and the Industrial Development Corporation of Zimbabwe Limited (IDC).

CBMC contributed 65% of the original funding in the form of modern technology and expertise while the IDC provided land, civil works, as well as highly educated, skilled manpower, coupled with management’s intimate knowledge of local conditions.

The plant started operating in 2001 and has a production capacity of 250 000 tonnes of cement per annum.

In July this year, Sino-Zim sales and marketing manager Ibiam Sengwe said in the last three years, the company had seen a consistent increase in capacity utilisation from 60 to 70%.

Sengwe said they closed the past year at 84% capacity utilisation and “we are projecting that by the end of the year 2022 we will have improved from what we achieved in 2021.”