adminMANAGEMENT changes are looming at cement producer Lafarge amid revelations incumbent managing director Mr Johnathan Shoniwa will be moved to chair the group with an unnamed appointee from Egypt replacing him. Sources who spoke on condition that they are not named told The Herald Business that the managing director will be taking over the group’s chairmanship from former Harare mayor Mr Muchadeyi Masunda.
The country’s second largest producer of cement, which has a 36 percent share of the Zimbabwean market, comes only second to Bulawayo base South African owned Pretoria Portland Cement Zimbabwe.
The Zimbabwe Stock Exchange listed group recently said production for the year to date came in 7,8 percent lower compared to the same period last year, but anticipated to meet its year-end target of 350 000 tonnes.
Lafarge Cement recently said it is diversifying its product portfolio due to a decline in cement demand on the local market. Finance director Mr Farai Matanhire said demand for cement has declined due to the liquidity crunch.
“The third quarter is usually our peak demand period but demand is low. The volumes are not at the level that we anticipated although the demand is still there,” he said. He said the previously predominantly cement producer had since boosted their paint manufacturing business as part of the diversification.
“There are a lot of projects that we have embarked on we have already increased capacity in terms of our paint manufacturing business. This is a business that we were not really focusing on before as our main focus was on cement,” he said.
Mr Matanhire added that they were also focusing supplying aggregates (material such as sand or gravel used with cement and water to make concrete, mortar or plaster) to the construction industry and line to farmers.
“The demand has been on the softer side but we are aware of a number of construction projects that are on hold due to funding issues and we believe once things start happening demand would actually go up,” Mr Matanhire said.
Despite the diversification into paint manufacturing, Mr Matanhire was optimistic that demand for cement will pick up again. Lafarge has in the past five years injected about US$25 million into its plant upgrading exercise, a move that is aimed at boosting the company’s operations while easing product supply.
In a statement accompanying the company’s results for the year ending September 2013, Mr Muchadeyi Masunda said he was optimistic that firm’s performance would improve as a result of measures being implemented.
Lafarge said that the statement of the group’s financial position reflects a favourable current asset position largely because of an increase in raw material as the company increased production capacity. – FinX/Business Reporter
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