Raw material shortage squeezes cement firm

Michael Magoronga, Midlands Correspondent
RAW material supply challenges are frustrating the viability of Redcliff-based cement manufacturing company, Livetouch International, which now relies on competitors for supply of limestone.

The young firm has lodged an appeal to Government seeking to be granted limestone mining concessions to boost its production.

Livetouch manufactures the Diamond Cement brand and has capacity to produce about 500 000 tonnes of cement per year.

However, it is only producing at 45 percent of its capacity owing to operational challenges.

Chief executive officer, Mr Don Wang, said the company has been hit hard by shortage of raw material to an extent that it was relying on competitors for the supply of limestone.

“Our cement production has reduced lately owing to shortage of limestone. We have been facing serious shortage of limestone that we have been relying on our competitors, PPC for the supply, which is not viable,” said Mr Don.

He appealed to Government to consider assisting the company with more limestone fields so that the company improves its operational capacity.

“The best that Government can do is to allocate more limestone claims so that we can get more raw materials for increased production at our company. Currently our company sits on a 10 hectare land but we are underutilising the land due to lack of raw material,” said Mr Don.

“We have had to switch off all our heavy machinery that consumes more power. That has in a way affected our production but I hope Government is working on that one since it is a national problem.”

He said the prevailing economic challenges have resulted in people doing less construction work, meaning reduced consumption of cement.

“Other than the shortage of raw material, the current economic situation has seen people not being enthusiastic to build. But we also believe Government is working hard to sort things that supply to consumers can increase,” said Mr Don.

The company employs about 80 workers against a potential 160 when operating at full throttle.