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Business Reporter
CEMENT production is this year’s expected to reach 1999 levels when output peaked with more than 1,1 million tonnes produced, the chairman of the Cement and Concrete Institute, Mr Gavin Stephens has said. He said cement production was highest in 1999 when they were still two cement manufacturing factories in the country, Pretoria Portland Cement and La Farge.
Since then, a third producer, Sino Zimbabwe Cement Company has joined the sector.
Mr Stephens said production started to drop at the turn of the century when the economy started to fall and there was 10 years of stagnation.
He said by 2004, production had slumped to just 570 000 tonnes.
However, he said since dollarization, the industry had been recapitalised and production was picking up.
“Since dollarization, we have recovered and we are expecting to reach 1999 (production) figures in 2013. The industry has been recapitalised,” he said in a paper given on his behalf at a transport symposium held by the NRZ in Hwange.
Mr Stephens said the cement industry was going to benefit from the rehabilitation of infrastructure which had deteriorated during the years of economic decline.
“We have had 10 years of stagnation and infrastructure is damaged. With restoration taking place, there is going to be heavy demand for cement and the three companies would be required to meet demand,” he said.
Mr Stephens said cement producers, especially PPC and Sino Zimbabwe, which were situated outside Harare were facing challenges in transporting the commodity to the market.
He said rail was the most suitable mode of transport but most of the cement produced was being carried by road which was costly.
According to statistics availed, PPC moved around 45 000 tonnes of cement by road while just 4000 were moved by rail. Sino Zimbabwe moved 15 000 tonnes by road while 4 500 tonnes was transposed by rail.
In total 18 000 tonnes are moved by rail and 72 000 by road every month.
Mr Stephens said failure to move large volumes of cement by rail meant that PPC which was in Bulawayo and Sino Zimbabwe near Gweru could not break the market strangle hold of Lafarge in Harare.
“Lafarge is sitting on centre of demand in Harare. Neither PPC nor Sino have been able to exploit the market in Harare because of transport,” he said.
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