Leading cement producer PPC Limited has signed a Memorandum of Agreement (MoA) with Beijing-based Sinoma Overseas Development Co. Limited to collaborate on efficiency improvements and expansion of cement and clinker production capacity in Zimbabwe.
The agreement provides for the two companies to work together on initiatives aimed at enhancing operational efficiencies at PPC Zimbabwe (Private) Limited while also assessing the feasibility of constructing a new integrated cement plant in the country.
PPC Limited, in a statement, said the short-term focus of the collaboration would be to improve efficiencies and increase clinker and cement output at PPC Zimbabwe’s existing operations.
In addition, the partnership will also evaluate the capital expenditure and investment requirements
PPC Limited chief executive officer Mr Matias Cardarelli said the agreement marked an important milestone in the group’s broader turnaround strategy.
“Our ‘Awakening the Giant’ turnaround strategy continues to advance across the group. This includes particularly the Zimbabwean operations, where we believe there are additional and significant opportunities to be unlocked internally, together with exciting potential for future growth,” he said.
“Like we recently did in South Africa, it is now time to work with Sinoma Overseas to improve efficiencies at our current plants and to seriously assess the feasibility of the construction of a new integrated cement plant in the country.”
He added that Zimbabwe remained a strategically important market for PPC due to its growth prospects and strengthening construction sector activity.
“The signing of this MoA is of key strategic importance to PPC. We are the leading cement producer in Zimbabwe, with an excellent footprint and we are operating in an environment where the construction sector is showing solid growth potential,” Mr Cardarelli said.
He added that PCZ’s cement sales and results have increased over the past two years and the group is now starting to prepare for the next growth phase.
PPC Zimbabwe managing director Mr Ndima Rawana said the partnership with Sinoma Overseas would allow the company to leverage global expertise in cement technology and engineering services.
“We are looking forward to working with Sinoma Overseas, which is the world’s leading integrated solutions provider for cement technology, equipment and engineering services, and being able to benefit from their vast experience and expertise.
“Collectively, we aim to improve efficiencies and production levels at our current assets and potentially establish new clinker and cement production capacity in Zimbabwe,” he said.
PPC said any future investment projects in Zimbabwe would be assessed under the group’s capital allocation framework and would remain subject to internal and external investment approval processes.-herald
