Sino Zim plans to increase exports

Published: 16 June 2014

GWERU-based cement manufacturer Sino Zimbabwe Cement Company (SZCC) sales have dropped by 8 percent in the first half of the year, a development attributed to low activity in the construction industry.

Cement sales have gone down to 46,000 tonnes from 50,000 tonnes during the same period last year.

Company general manager Derrick Moyo said the poor performance of the company's products was as a result of the prevailing liquidity in the economy.

He said the company will soon move in to increase its presence in the export market.

"Cement sales this year have mainly been affected by a lengthy rainy season spell which means there is little activity which is taking place during this period. However, the liquidity challenges being experienced in the economy has had the largest impact on our turnover," said Moyo.

"People do not have disposable income and companies are scaling down operations and this has had a ripple effect on our operations. We are now exploring increasing exports to cover up for the drop in sales on the local market."

SZCC produces 300,000 tonnes of cement annually and five percent of the commodity is exported mainly to the DRC and Zambia.

The company, a joint venture between Zimbabwe and the Chinese government, was recently awarded the second runners up spot in the exporter of the year category at the Zimbabwe National Chamber of Commerce awards held in Gweru recently.

Moyo said if revenue remained depressed the company could be forced to reduce the price of cement to stimulate sales.

He said the move would not have an effect on the viability of the company.

"We are hopeful things will improve as the year progresses.

"However, if the situation remains the same we might reduce the price of cement as this would not have any bearing on our revenue after we undertook the first phase of our refurbishment exercise," he said.

"The refurbishment increased our capacity at the same time improved our efficiency in terms of electricity usage and other overhead costs. This in fact has benefited the end user through competitive prices."

SZCC in December completed the first phase of its three phased upgrade programme which gobbled $4.1 million.

This phase included the refurbishment of the cement mill, the refurbishment of the rotary kiln as well as upgrading, renewing and automating ancillary equipment.

The Gweru based cement manufacturer will soon embark on the next phase of revamping at a cost of $2 million which will see the construction of two new stock silos, automatic loading systems and increasing the quarry site capacity.
- chronicle