Lafarge Cement Zimbabwe plans to spend US$4.5m on capital expenditure during 2012 in a move aimed at improving the plant’s efficiencies, according to local press. In a trading update for the first three months ending March, managing director Jonathan Shoniwa said: “This is expected to result in better plant rehabilitation and improved efficiencies.”
He said cement demand in the first three months was up 31% and the market remained predominantly retail as the construction sector’s contribution was stagnant at 18 per cent.
In the first quarter revenue was up 32 per cent to US$16m. The company is projecting full-year revenues of US$60m up from US$50m last year.
“Profit margins at 13% are expected to improve further following the reorganisation and anticipated increased efficiencies,” he said.
“We recorded minimal exports for the quarter as the main strategy is to focus on the more profitable domestic market,” Mr Shoniwa added.
