PPC planning to diversify to concrete bricks, pavers
PRETORIA Portland Cement (PPC) Zimbabwe plans to diversify into brick molding and production of allied construction products, Chairman Todd Moyo has said.
Speaking on the sidelines of the soil turning event of PPC’s $86mln Msasa plant, Moyo said the company will continue investing in Zimbabwe as it has great confidence in the country.
“Our investment into a new plant goes to show that PPC is a truly Zimbabwean company and not just a Matabeleland company. We are making this investment when the economy is not performing well because we believe in the future of the country and expect many projects to come forth from the ZIMASSET blueprint
“Besides cement production, we will soon be venturing into related areas which could include molding of concrete bricks and pavers. We will also look at the supply of aggregates in the country,” he said.
The new plant is expected to be commissioned in September 2016 and will have a capacity of 700 000 tonnes. The group expects to invest a total $200 mln on the Msasa plant. Moyo however said the firm is still looking for a reliable source of limestone for the second phase of the project which entails establishment of a clinker plant.
Moyo said the improved production volumes will not only cater for the domestic market as some of the products will be exported to Tete province in Mozambique.
Speaking at the event, PPC MD, Njambo Lekula said while the Msasa plant is being built by Sinoma International Energy, PPC is engaging numerous local suppliers to leverage the scoop of opportunities on the project beyond the EPC management agreement.
“Because 70% of the total value of the EPCM is allocated to the supply of actual plant equipment, it is necessary for us to contract with a provider of the likes of Sinoma to ensure we create a world class plant for the region,” he said.
Minister of Industry and Commerce, Mike Bimha urged more South Africa companies to invest in the country as Zimbabwe remains a safe investment destination. He said South African companies should take advantage of the economic downturn to partner with local struggling companies that are retrenching en-masse.
He said government has since commenced the CBCA program that aims to protect local companies from cheap imports.
Products intended for export to Zimbabwe will be inspected prior to shipment in the country of export. Upon satisfactory verification, a CBCA certificate will be issued for the consignment. As from 27 July 2015, all consignments were verified prior to being imported.” he said.
Bimha said all goods are issued with a transitional certificate and goods are not rejected into the country, even if they fail to meet the required standards but the importers and exporters are informed about the non-conformity of their products. The transitional period will end on October 31, thereafter; a certificate of conformity will be required to allow access into the country. FinX