adminMidlands Correspondent
GWERU-based cement manufacturer, Sino Zimbabwe Cement Company says it is considering reducing the number of shifts from three to one due to depressed cement demand.
The prevailing liquidity constraints have resulted in low activity in the construction sector, which has had a negative effect on cement manufacturers.
SZCC managing director, Mr Wang Yong told Business Chronicle that local demand for cement has fallen by 25 percent due to low activity on the construction market.
He said: “We have a significant decrease in demand in the cement industry this year and as a company we have experienced a 25 percent fall. As a company we are exploring options because we are holding on to stock, which is not being taken up.
“We are still running three shifts but based on the demand we will consider running a day shift only in response to the market environment. At the moment our silos are full and we have enough stocks to serve the entire market.”
Despite the harsh economic environment the SZCC boss said the company is still forging ahead with its expansion plans.
The Gweru-based cement maker has injected $1 million towards the construction of three sheds for its raw materials and expansion of the truck parking space.
“Despite the challenges we are facing we are not stopping investing in the business and at the moment we have invested $1 million, which is going towards the construction for three sheds where we will keep our coal, sand and clinker during the rainy season as we hope to continue production.
“We are also expanding the parking space for trucks from our customers who would want our product,” he said.
The company last year completed a two phased expansion drive, which saw production increasing by 100 percent after $5 million was committed towards the exercise.
SZCC plant has a design capacity to produce 400 000 tonnes of cement a year.
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derick.khumalo