Tinaye Agere
Business Reporter
ZIMBABWE’S second-largest cement manufacturer, Khayah Cement, says it is on solid ground for strong growth after the company invested over US$25 million into upgrading capacity.
The firm, the number two biggest cement manufacturer after PPC Zimbabwe, has also received significant support from its new local shareholders.
Having been acquired by a consortium of local businesspeople in 2022, the entity rebranded from Lafarge to Khayah Cement in 2023, marking a new era of 100 percent local ownership and investment.
Following the acquisition, the company installed a new vertical cement mill (VCM) plant in 2022 for US$20 million, which doubled cement production.
Khayah also invested US$2,2 million into a new dry mortar plant.
The facility offers flexibility for innovations in the built environment given that it can tailor-make different varieties of dry mortar mixes.
“Having local shareholding has been one of the best things to happen for the company because we are now working with people in the same environment; hence, you will find your decision-making becomes quicker, your understanding of the environment is immediate and it helps a lot in what is then important for the business.
“In terms of direction, they are very clear on what they want to achieve, which is to grow this to being one of the best companies . . . ,” disclosed Mr Innocent Chikwata, the group chief executive officer, during a tour of the firm’s premises.
The VCM plant has seen the company doubling cement production capacity to 1 million tonnes per annum, from 500 000 tonnes per year.
The new plant can also produce high-strength cement like Superset 42,5R.
The company invested in cement bulk tankers to ensure support for road infrastructure projects.
Mr Chikwata said the VCM plant is currently producing 700 000 tonnes per annum against the installed capacity due to a shutdown of the kiln plant, which produces clinker, a key raw material in cement production.
“Last year we had some issues in the cement industry, and part of what affected us as Khayah was the kiln plant.
“We came to a point where we stopped it because of unreliability. Therefore, we are about to embark on a project to refurbish the plant, and this project is going to cost us between US$15 million and US$20 million,” he said.
Mr Chikwata said the refurbished plant would be recommissioned in the second half of 2025.
He noted that the company was finalising funding arrangements for the project.
“This is monumental for us. It is a project in a normal cement factory that can happen once every 10 years, and we are privileged to be part of that monumental event that will happen.
“Once this is done, it will bring a lot of stability not just to us but even the cement industry in terms of raw material supply because and when we do have the raw material, it is even in excess and there is also the opportunity to even sell to other producers locally because, once in a while, clinker can become an issue in our industry.
“So, we have decided as Khayah to spend that money so that we not only stabilise Khayah Cement as an operation but we also do the same for the cement industry,” said Mr Chikwata.
He noted that in the next few months, once funding is finalised, the works would commence.
“In the meantime, there is preparatory work such as demolition of the old plant, and we are doing that to create space because part of the project scope, which will be in phases, will do certain upgrades of the current operation, and we will need a bit of more space so that we bring in new technology that is more efficient.
“In terms of timelines, all things being equal, from start to end, the project will take eight to 12 months to complete since some of the components will be coming from different countries,” revealed Mr Chikwata.
He indicated that the project was also part of the group’s contribution towards the Government’s Vision 2030, which has seen several infrastructure projects being undertaken.
“We see the growth that is there in the construction industry infrastructure and individual housebuilding, and the sooner we do the project, the sooner we can also partake in that whole process that the country is moving in line with,” said Mr Chikwata.
Commenting on cheap imports from the region, Mr Chikwata said the issue was a big challenge for the whole cement industry.
“It’s not an issue that we can ignore because they definitely are quite significant. However, we have been working with the relevant authorities, mainly our parent ministry, which is the Ministry of Industry and Trade, in terms of what can be done. But in our view, we feel we just need to keep pumping cement in the market since we have a trusted brand,” he said.
On power supply, he said the firm was being prioritised. Discussions on alternative power sources had, however, started, he added.
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