Lafarge mulls concrete roads Cement maker Lafarge
Cement maker Lafarge

Cement maker Lafarge

Tinashe Makichi Business Reporter
Lafarge Holcim Zimbabwe is exploring the feasibility of establishing concrete roads in the country based on expertise and availability of technical support within the Lafarge group. The construction of cement roads has become necessary in most developing nations looking at the scarce and erratic availability of bitumen the world over.

Lafarge chief executive Amal Tantawi yesterday told The Herald Business that the company remains interested in this area based on its expertise and availability of technical support. “The company is exploring the feasibility of establishing concrete roads in the country. Concrete roads have a relatively higher initial cost but lower maintenance cost and longer life which translates into lower life-cycle costs per kilometre in comparison to other road types.

“Lafarge Holcim Zimbabwe remains interested in this area based on its expertise and availability of technical support,” said Mrs Tantawi. Road construction has always been a conventional indicator of development in a country. Mrs Tantawi said Lafarge has maintained its focus on the core business of producing cement but the company also has a diverse product range which includes aggregates and cement based products.

She said the company has identified a number of projects and will pursue their implementation once feasibility studies are completed. Lafarge continues to invest in developmental projects and as at 30 June 2015 the company invested $1, 2 million in plant upgrades against a capital expenditure commitment of $5 million.

On local demand, Mrs Tantawi said the company’s forecast for the rest of the year is consistent with the company’s anticipated level of profitability in view of the upside driven by the second half trends. “There is a growth in demand in the market in comparison to 2014 and this is driven by various factors. The company therefore continues to look for opportunities to exploit this growth in the market,” she said.

During the year June 2015, the construction industry remained largely subdued due to lack of major national and large commercial infrastructure projects. However, low scale projects and independent home development projects continued although at a lower momentum than the previous year.

Mrs Tantawi further said Lafarge continues to operate in an environment characterized by the entry of other cement manufacturers. “The company welcomes and views competition as healthy for both our business and our customers. Competition presents opportunities for innovative thinking and providing quality service to the customers and also allows the company to continue to innovate and truly understand the needs of its customers.

“Lafarge has been the cement of choice over the past 60 years and we are proud to be associated with iconic structures spread across Zimbabwe. We remain committed to our customers and will continue delivering products and services of the highest quality,” she said.

Mrs Tantawi said Lafarge has the assets necessary to address the challenges of a new world with a local presence in 90 countries. The cement manufacturing giant anticipates improved profitability in the second half of the year driven by favourable seasonal sales trend and operational synergies.

The second half is generally characterized by improved performance driven by the resumption of projects after the rainfall season and marginal improvement in economic performance due to domestic inflows from seasonal harvests and tobacco sales

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