Lafarge to commission new plant

Lafarge to commission new plant
Published: 02 June 2022
Listed cement maker, Lafarge Zimbabwe will soon commission a new vertical roller mill plant at its Manresa complex as it seeks to double its output, CEO Godfrey Ndugwa has said.

The launch of the vertical roller mill (VRM) will reposition the company on a growth trajectory into the future which will have a positive impact on the company's revenue generation and profitability,'' Ndugwa said.

He added: ‘'The company is confident that volumes will recover and grow as the availability of cement stabilises, especially after the new VRM start-up.''

The development comes after Lafarge sales volumes plunged 55% in the quarter to March 31,2022.

The collapse of the cement mill house roof in October last year also negatively affected the company's Dry Motar volumes which dropped by 23% due to a reduction in cement availability, which is a crucial ingredient in Dry Mortar products.

As a result Lafarge has been experiencing serious liquidity issues, which prevented it from paying all of its cash obligations.

This had an impact on business operations, resulting in unscheduled downtime and, in certain circumstances, a material shortage to keep the factory functioning.

Revenue also decline 18% in the period under review.

However, as market demand continues to grow driven by the segment of individual homebuilders as well as the ongoing major government infrastructure development projects the company is anticipating increased production driven by the new VRM plant.

In the outlook, Ndugwa said the company was encouraged by the positive trajectory of the economy and anticipates that collaborative dialogue between Government, industry and other stakeholders will be maintained in order to restore and safeguard business confidence as well as preserve value and restore macroeconomic stability.
- Business Times
Tags: Lafarge,


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