Sino Zim loses 50 percent business
By Lovemore Zigara
Incessant rains being experienced across the country have disrupted operations at Sino Zimbabwe Cement Company (SZCC) which has lost about 50 percent of business since the beginning of the year, management has said.
The company, a joint venture between the Zimbabwean and Chinese governments, has projected a further decline in sales this quarter citing different factors including liquidity challenges.
SZCC managing director Mr Wang Yong told Business Chronicle that their challenges were exacerbated by the continued smuggling of cheaper cement mainly from South Africa.
“We have recorded low business since the beginning of this year because of the heavy rains the country has been receiving. There is minimal activity taking place in the construction industry hence the low uptake of cement. We also have other factors, which are already prevailing in the economy, which include the cash shortages and the continued smuggling of cement products mainly from South Africa,” he said.
“Compared to the first two months of last year our sales have gone down by 50 percent and judging by reports we are still going to experience more rains this month (March) and therefore sales will still be depressed.”
Mr Yong, however, was optimistic that business would pick up in the second quarter of this year.
“Our traditional peak demand for cement starts from April that is when projects will then take off. We are hopeful that the economy will improve spurred by the good harvests which we are expecting this year and this will have a positive impact on industry as there could be disposable incomes to undertake other projects,” he said.
SZCC is the third largest cement producer in the country after Pretoria Portland Cement and Lafarge.
The Gweru-based firm produces 400 000 tonnes of cement per year and commands a 25 percent market share. The Chronicle
