Global cement maker now in Zimbabwe

One of the world's top cement producers, Huaxin Cement Co. Ltd, has made a significant investment in Zimbabwe by committing US$15 million to build a new manufacturing plant in Mt Hampden. The plant, which is expected to produce 300,000 tonnes of cement annually, marks a major step forward for the local construction industry and signals Zimbabwe's growing importance as a hub for cement manufacturing in Southern Africa.

Huaxin Cement Co. Ltd, with a global asset base exceeding US$25 billion, has set up Huaxin Zimbabwe (Private) Limited to oversee operations. The company has ambitious plans to increase its production capacity to 1 million tonnes per year, depending on access to additional limestone reserves in the country.

"We will start with at least 300,000 tonnes of cement per year, but if we access lime reserves here in Zimbabwe, we will increase production to 1 million tonnes per year," said Huaxin Zimbabwe director, Mr. Clemence Gomba. "We will be able to export to our neighbouring countries."

The plant, which sits on five hectares in Mt Hampden, will produce Supaset Cement, a product already popular among builders in the region. Currently, Zimbabwe imports Supaset Cement from countries like South Africa, Zambia, Tanzania, Malawi, and Mozambique. Mr. Gomba emphasized the company's goal of bringing cement production closer to home. "We produce 32.5 and 42.5 cement grades, which are widely used in the construction industry. We want Zimbabweans to get the cement at their doorsteps."

Boosting local employment and reducing imports

Huaxin Cement's venture is also set to create significant employment opportunities in Zimbabwe. The company will initially employ 200 local workers, along with five Chinese nationals who will oversee the technical aspects of the plant's operation. Construction of the site began last month, and production is scheduled to start by December 2024. The plant's initial production capacity will be 25,000 tonnes of cement per month.

Huaxin Cement Co. Ltd CEO, Mr. Chen, expressed enthusiasm about investing in Zimbabwe, crediting the strong relationship between Zimbabwe and China for creating a conducive environment for foreign investment. "We have realized that a lot of Chinese investors are coming to invest here," said Mr. Chen.

Mr. Chen also highlighted the company's goal to reduce Zimbabwe's reliance on cement imports. "We hope to satisfy the local market so that we reduce our import bill and save foreign currency for the country," he said. The company is also exploring local limestone reserves to avoid importing "clinker," a key ingredient in cement production made from sintering limestone.

Government support and industry impact

Zimbabwe's Industry and Commerce Minister, Mangaliso Ndlovu, toured the Huaxin Cement site and expressed optimism about the impact of this investment on the country's cement supply. "They have told us that they are major suppliers of cement to Zimbabwe from Zambia, and now they are keen to set up a manufacturing plant here. This is something we want to encourage because we need to increase local production," said Minister Ndlovu.

Zimbabwe has seen a surge in cement imports from countries like Zambia and South Africa, underscoring the need for increased local production capacity. Minister Ndlovu welcomed Huaxin Cement's decision to invest in the country, noting that this would help meet growing demand and boost the local construction industry. "By the end of December, they will start operating," he added.

With operations across Africa, including in Malawi, South Africa, Tanzania, Mozambique, and Zambia, Huaxin Cement is well-positioned to support Zimbabwe's industrial growth while also leveraging its regional footprint to expand exports.

This investment highlights Zimbabwe's potential as a regional cement production hub, and Huaxin Cement's presence is expected to stimulate further economic growth and development in the country's construction sector.