CEMENT manufacturer PPC Zimbabwe's managing director, Albert Sigei, says the company is focusing on cost optimisation and innovative production techniques to navigate the country's high-cost environment.
In recent years, Zimbabwe's cement industry has faced fluctuating demand and rising production costs, largely driven by erratic power supply, logistical challenges and exchange rate distortions.
“The topics of cost optimisation, efficiency, and innovation are really critical, as they are ones that we put at the top of our agenda. It means reduction of costs, but it also means using the latest technologies,” he said.
“For example, technologies and approaches in our processes that will allow us to lower our energy consumption without compromising the quality of our cement.”
He said this approach involved reducing costs while leveraging the latest technologies.
Businessdigest understands that the company has implemented approaches that ensure less power is used to produce a bag of cement, resulting in improved power efficiency.
Additionally, PPC has adopted technologies that reduce energy and heat consumption, leading to lower costs.
To promote sustainability, the company is investigating new approaches involving using alternative materials and production methods to manufacture cement.
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“We call it cement using ‘cementition’ because it’s like cooking your product in a different way without changing the taste,” Sigei explained.
“So, basically producing the cement using innovations and ingredients or inputs without compromising on the quality, and we are working very hard on that.”
He noted that the company’s strategy was to be competitive on costs in Zimbabwe.
“This is the only way to be able to fight, not only against competition within the country, but also to fight and be competitive against regional players because the region is opening up to the likes of the African Continental Free Trade Area,” Sigei added.
Looking to the future, he highlighted some strategies being implemented.
“While market forces ultimately determine prices, the operating environment also plays a significant role. In Zimbabwe, our high-cost environment has had a substantial impact on prices,” Sigei said.
“As we are taking steps to address the high cost of power, as well as logistics and manpower costs, this will help us to better manage our expenses.”
