Infrastructure development to drive Khayah Cement’s growth
KHAYAH Cement, previously known as Lafarge Cement Zimbabwe, has said the cement sector is poised for growth following a surge in the construction industry driven by significant investments in infrastructure development from both the Government and private individuals.
The company, which recently rebranded from Lafarge Cement Zimbabwe, highlighted the increased demand for cement as a direct result of ongoing infrastructure projects. Government initiatives and private investments in infrastructure are key factors contributing to this heightened demand.
These projects include the development of roads, bridges, housing and commercial buildings, all of which require substantial quantities of cement. In a statement accompanying the company’s 2022 abridged audited financial results for the year ended 31 December, Khayah Cement board chairperson, Mr Kumbirayi Katsande said the company is also pinning its growth prospects on positive economic activity in the agriculture sector.
“Encouraging signs are being observed in the individual household sector and Government-funded infrastructure projects. There is also higher economic activity in the agricultural sector, which is being spurred by Government-driven initiatives,” he said.
“The company is uniquely positioned to support the agricultural sector through its dry mortar products, which include agricultural lime.” Mr Katsande said they welcome and support efforts by the Government and regulatory agencies to stabilise the macro-economic environment and maintain the viability of the cement industry.
He said the need to regulate cement imports, bring inflation under control, address the shortages of electricity supply and an improvement in the state of the global economy are likely to be dominant factors in the company’s performance.
Mr Katsande added that the influx of cheap imported cement posed a serious threat to the domestic industry, which has enough capacity to meet national demand. The constructive engagement continued with the regulatory authorities in an endeavour to obtain the required support.
“The company will also continue to adapt its business strategy to thrive in the ever-changing environment,” said Mr Katsande. He said the directors are satisfied with the positive trend in production, sales and profitability despite power outages, among other challenges.
Mr Katsande said the change of the company’s name from Lafarge Cement Zimbabwe Limited to Khayah Cement Limited was approved by the board during an extra-ordinary meeting held on July 7, last year.
This paved the way for the resumption of trading of the company’s shares on the Zimbabwe Stock Exchange, amongst other conditions precedent. Lafarge resumed production of cement at both mills in mid-February 2022 following the October 2021 incident, which resulted in the roof over both cement mills collapsing.
During the second half of the year, the company successfully commissioned the Vertical Cement Mill (VCM) and subsequently decommissioned Mill One, which had the least capacity. The VCM doubled the company’s milling capacity to one million tons per annum and bolstered its ability to supply high-strength cement of improved quality and, at the same time, reduced production costs.
In December 2022, there was a change in the company’s majority shareholding, which saw a local consortium acquire the 76,4 percent stake in the business, previously held by Associated International Cement Limited.
Accordingly, the Company embarked on a transformation and re-branding journey in line with the changes in the majority shareholding.-chronicle
