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Midlands Correspondent
GWERU-based cement manufacturer, Sino Zimbabwe Cement Company is considering reducing the number of shifts from three to one citing depressed cement demand.
The prevailing liquidity constraints have resulted in low activity in the construction sector, which has had a negative ripple effect on cement manufacturers.
SZCC managing director, Mr Wang Yong told Business Chronicle that demand for cement has fallen by 25 percent on the local market due to low activity in the local construction industry.
He said: “We had a significant decrease in demand for cement this year and as a company we are exploring options because we are holding 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 meet market demand.”
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 $1m towards the construction of three sheds for its raw materials and expansion of the truck parking space.
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.
Online Reporter