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Michael Tome
Business Reporter
LISTED cement manufacturer Khayah Cement, recorded a 96 percent jump in sales volume buoyed by its vertical cement mill, which was installed in the third quarter of 2023.
Formerly Lafarge Cement Zimbabwe, the firm also witnessed a 121 percent growth in dry mortar product sales, driven by improved industrial performance.
The performance reflects firm recovery following the plant collapse, which halted operations between October 2021 and 2022, adversely impacting the availability of cement products on the market.
The slowdown in operations was also weighed down by Covid-19 induced lockdowns, as the company faced disruptions of normal work routines and supply chain disturbances.
However, in 2021, the company began rolling out capital expenditure initiatives, which saw the successful completion of an automated dry mortar plant in a bid to improve plant availability.
These initiatives included strengthening the logistics division and modernisation of laboratory equipment for enhanced quality insurance, which were all financed through a capital injection from the new shareholder.
In a first-quarter trading update to March 2023, Khayah cement limited company secretary Arnold Chikazhe said the company had been undergoing a business transition following the exit of Associated International in November 2022.
He said the installation of the Vertical Cement Mill was expected to double the firm’s cement capacity going forward.
“The company’s industrial performance increased with the installation of the Vertical Cement Mill in the third quarter of 2022. This led to increased milling capacity which has created opportunities for the development of high-strength cement varieties and consistent product supply.
“Overall the ongoing expenditure programme aims to capacitate the firm’s industrial operations,” said Mr Chikazhe.
A Vertical Cement Mill is a type of grinder used to grind materials into extremely fine powder for use in mineral dressing processes, paints, pyrotechnics, cement, and ceramics. It is an energy-efficient alternative to a ball mill.
Khayah’s business performance during the quarter maintained an upward trend, recording an 18 percent in volume growth across operations.
The firm’s net sales improved by 131 percent to $11,1 billion in inflation-adjusted terms against $4,8 billion in the comparable quarter in 2022.
This came as aggregate volume uptake doubled in the period against the same period last year while clinker production declined by 28 percent.
The period also witnessed strong growth in dry mortar products, credited to strong demand for the agricultural lime range Supagrow.
“The sales evolution reflected enhanced production volumes across the business as well as an increase in foreign currency sales.”
The overall market demand continues to grow driven by the segment of individual home builders as well as the ongoing major government infrastructure development projects.
The company is confident that volumes will recover and grow as the availability of cement stabilises.
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