PPC struggling to utilise expanded capacity in Zimbabwe

Last November, PPC Cement commissioned an US$85 million plant in Harare that produces 700 000 tonnes per year.

PPC Zimbabwe says it is currently operating at a "less than ideal capacity utilization" due to reduced activity in the economy, but remains confident of a positive turnaround in the market in the short to medium term.

PPC Zimbabwe managing director, Kelibone Masiyane, told The Source that the company was faced by a number of problems, chief among them the liquidity crisis.

"As you are aware, we recently increased our capacity by putting up our new 700 000 tonnes per annum milling plant in Harare. This increased footprint presents us with great opportunities in the north of the country," Masiyane said.

"The company is currently operating at a less than ideal capacity utilisation due to reduced activity in the economy.  However, we are confident of a positive turnaround in the market in the short to medium term and this should improve our capacity utilization," he said.

Last November, PPC Cement commissioned an US$85 million plant in Harare that produces 700 000 tonnes per year.

The Harare plant doubled the firm's capacity to 1.4 million tonnes of cement per year.

Its sales rose by nine percent in the nine months to December 2016 after commissioning the plant.

PPC has two other plants in Zimbabwe, one in Bulawayo and another in Colleen Bawn near Gwanda both with a total production capacity of 700 000 tonnes annually.