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Email ArticleThe local unit of French cement maker Lafarge Zimbabwe says it plans to invest US$3, 3 million to increase capacity utilisation by 80%.
The group has a current production capacity of 450 000 tonnes per annum.
Group managing director Jonathan Shoniwa said the investment will see installation of new equipment being installed in its Harare based factory.
“ It’s an on-going project, the plant is old and if we intend to sustain our production levels it has to be replaced,” the Lafarge boss said.
He said the project was being funded from borrowings and internal revenues.
“It’s a mixture of borrowings and own funding .As you might know we have not fully utilised our drawdown but the bulk is from internal generated revenues and the equipment to be used has been bought over a period of a year,” Shoniwa said, adding that the funds will be internally generated.
Shoniwa said discussions were being held with government over compliance with the indigenisation policy.
Lafarge is 76 percent owned by France-based Lafarge.
During the period under review, the company posted US$41, 6 million revenue – a 47 percent increase compared to US$28,3 million in the comparable period.
Operating margins improved by nearly seven percent to 10 last year.
Basic earnings per share for the group also remained unchanged at US0,03c per share.
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