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Nelson Gahadza
Senior Business Reporter
Cement manufacturer Khayah Cement is set to embark on a US$20 million Kiln plant refurbishment programme, which is expected to increase production and sales volumes.
Khayah, Zimbabwe’s second-biggest producer, last year stopped operating the kiln plant, which produces clinker, a key raw material in cement manufacturing, due to constant breakdown and other operational inefficiencies related to aging. The company commissioned a new 1 million tonnes-per-year capacity plant last year as part of a US$25 million investment.
However, the plant is currently not operating at full capacity due to clinker shortages as the company is relying on imports and excess clinker from other producers.
Group chief executive officer Mr Innocent Chikwata during a plant tour yesterday said recommissioning of the refurbished plant was expected in the second half of 2025.
“Last year we had some issues in the cement industry and part of what affected us as Khayah was the kiln plant. We had to make a decision to come 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 Khayah was in the process of finalising funding arrangements for the project.
“This is monumental for us. It is a project in a normal cement factory that can happen once in 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 when we do have the raw material and it is even in excess there is also the opportunity to even sell to other producers locally because clinker once in a while in our industry can become an issue.
“So we have decided as Khayah to spend that money so that we not only stabilize Khayah Cement as an operation but we also do the same for the cement industry,” said Mr Chikwata.
He noted that in the next couple of months once funding is finalised, the works will commence thereof.
“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 8 to 12 months to complete since some of the components will be coming from different countries,” said Mr Chikwata.
He indicated that the project is also part of the group’s support in terms of Vision 2030 which has seen several infrastructure projects being done currently.
“We see the growth that is there in the built industry infrastructure and individual house building and the sooner we do the project sooner we also can partake in that whole process that the country is moving in line with,” said Mr Chikwata.
Having been acquired by a consortium of local businesses in 2022, the business rebranded as Khayah Cement in 2023.
Khayah Dry Mortars plant is the biggest locally and was also officially commissioned by President Mnangagwa in 2020 and the plant offers flexibility for innovations in the built environment as it can tailor-make different varieties of dry mortar mixes.
These include Watershield, a waterproofing cement locally manufactured. Mr Chikwata said product acceptance in the market is good.
“We have witnessed steady growth in sales volumes and revenue, an average 18,4 percent month on month to May 2024. Capacity utilisation is currently at 60 percent,” he said.
He said further growth is expected by the turn of the year on the back of strong market activity. Mr Chikwata said the company has also invested in Bulk tankers to take part in the ongoing structural development in the country.
“Of high interest is the supply of cement to contractors doing road stabilisation as well as concrete product manufacturers (CPMS),” said Mr Chikwata.
He noted that there are high expectations of growth in the last half of the year driven by the Government’s drive towards infrastructure development as well as housing.
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