Lafarge’s operations in Zimbabwe have reportedly received US$3m from its parent company, the Lafarge Group, for refurbishment of plant and machinery.
The Herald Business said managing director Mr Jonathan Shoniwa would not confirm this, but understands the money was received through a local financial institution and draw down of the funds have started.
This would also enhance Lafarge’s efforts to raise capacity utilisation to 80 per cent by the end of the year from about 70 per cent presently. More than three-quarters of cement produced is sold on the local market.
"I cannot comment on the issue now as we are now in our closed period. That would be captured in our half-year financial results," said Mr Shoniwa.
Earlier, Mr Shoniwa said the recapitalisation of operations would enhance efficiencies at the Zimbabwe Stock Exchange listed cement producer. Expectations are that improved efficiency in Lafarge’s operations would enable the cement maker to cut costs and enhance its competitiveness.
Source: The Herald Business, Zimbabwe