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ZIMBABWE cement manufacturers have called for a reduction in the price of electricity after exports into the region dried up as high production costs make local products uncompetitive. Industry representative, Kelibone Masiyane, on Friday told a meeting organized by the Ministry of Industry and Trade to discuss import control measures that exports dropped from over 100,000 tonnes in 2014 to less than 40,000 tonnes last year and there has been none at all this year.

Masiyane said at $150 per tonne, the cost of production was twice as high as that of other countries in the region mainly due to high power costs, which at 14 cents per kilowatt hour, make up 25 percent of production costs.

“At this stage we’re quite vulnerable and there’s no way we can compete. We need to relook the manufacturing cost base to reduce the cost of electricity and diesel Also, there are a lot of levies and duties that we’ve to deal with,” said Masiyane, who is also the managing director for Pretoria Portland Cement (PPC).

Zimbabwe’s cement industry mainly comprises of three players: PPC, Larfarge Zimbabwe and Sino-Zim, all with a combined installed capacity of 1, 46 million tonnes per annum. PPC has 760,000 tonne capacity, Lafarge 450,000 tonnes and Sino-Zim Cement 250,000 tonnes.

PCC expects to add 700,000 tonne cement capacity from its new Harare plant, expected to be commissioned later this year. The country’s demand for cement for the year is estimated at 1,17 million tonnes. Masiyane said the government needs to control imports because the country has enough capacity to meet demand up until 2030.

“As industry we’re asking for the imposition of an import tariff which equalises the landing cost into Zimbabwe to level the playing field. In the event of a shortage, only players in the industry should be allowed to import on behalf of the country so we ask for a review of the import permits that have been already issued,” he said.

The industry has invested a combined $185 million over the past five years. In August last year, Nigerian billionaire Aliko Dangote announced plans to build a 1,5 million tonne cement plant in Zimbabwe.

Meanwhile, Gweru-based Sino Zimbabwe Cement Company says it will introduce a new cement product Ordinary Portland Cement with a strength of 42,5 used in the construction of tall structures, bridges and roads on the market in June. The cement manufacturer is a joint venture between the Industrial Development Corporation and China Building Materials Corporation.

It already has masonry cement (22,5), which is recommended for all masonry work, brick, mortar, plastering and general building and Portland Composite (32,5)cement, which is used for construction of high strength structures on the market.

Wang Yong, SZCC managing director told Chronicle Business that the firm is now waiting for a licence certificate from the Standards Association of Zimbabwe (SAZ) before they can introduce the product to the market.

“We’ve already applied the licence for us to introduce the cement type 42, 5 on the market and I believe it’ll be issued after SAZ, which has already collected some samples, has certified the product that it meets the standards,” he said. “SAZ has indicated to us that they’ll issue us the certificate in early June and then we can put the product on the market.”

SZCC is banking on the infrastructure development deals signed between President Robert Mugabe and his Chinese counterpart, Xi Xinping such as the refurbishment of Hwange Power Station, construction of the Kariba Hydro-Power Project while separate developments such as the dualisation of the Harare – Beitbridge Highway will provide a market for the new product.

The introduction of the new cement product which is only manufactured locally by Pretoria Portland Cement comes after the SZCC raised its storage capacity following the construction of two silos and the installation of two automated packing machines at a cost of $2 million last year.

The silos increased storage capacity of cement stock to 10,000 tonnes of the commodity while the packers will double the capacity of cement being discharged per day from 1,500 tonnes per day to 3,000 tonnes per day.— Chronicle Correspondent/The Source.