Chilanga swells profits

Chilanga swells profits
Published: 24 March 2004

Chilanga Cement Plc made an after tax profit of K47.2 billion in 2003 compared to K31 billion in the preceding period to register a profit margin increase of K16.2 billion.  According to its 2003 annual report released in Lusaka recently, the increase in the profit margin was due to new record production levels, which swung from 342, 000t of cement in 2002 to 428, 000t in 2003.  "Production was at record levels due to the improved efficiency and reliability of both plants (Chilanga and Ndola)," the report states.  Clinker production also shot up from 365,000t to 378,000t, to post an overall capacity utilisation of 80 per cent during the period under review.  The report states that the export market grew significantly with the Democratic Republic of Congo importing about 48 per cent, and Burundi about 47 per cent of the company’s exports.  A total of 85,000t of cement and clinker were exported during the period.

The report, however, states that it also experienced logistical and technical problems during the period 2002/2003 with the lack of adequate availability of coal on the local market: "The availability of coal from local sources continued to be unsatisfactory, making the importation of coal from Mozambique and Zimbabwe essential.