Lafarge Cement Zimbabwe says it has concluded a US$15 million financing facility to fund the expansion of its operations.
In a trading update for the third quarter ended September 30, 2019, company secretary, Ms Flora Chinhaire, said the firm was optimistic of opportunities in the growth of the construction sector beyond 2020.
“In this vein, management has successfully concluded financing arrangement for a US$15 million facility to fund expansion cement
milling capacity and the Dry Mortar Mix (DMX) plant.
“In addition, in order to mitigate the effect of erratic power supply, the business has embarked on alternative power supply to supplement Zesa generation as part of our expansion efforts,” she said.
Ms Chinhaire said their capital expenditure expansion programme has been rolled out with the power generating unit now on site while the DMX plant was being manufactured.
“Work on the cement milling expansion project will commence in January 2020.
“The company is effectively engaging the Reserve Bank of Zimbabwe to conclude registration of our external shareholder loan of US$28,5 million and expect to conclude the matter before end of the 2019 financial year,” she said. — Bulawayo Bureau.