Khayah Cement, Zimbabwe’s second-largest cement producer, is set to begin a US$20 million refurbishment of its kiln plant, aiming to enhance production and sales volumes.
Last year, Khayah halted operations at the kiln plant, which produces clinker—a crucial material in cement manufacturing—due to frequent breakdowns and inefficiencies stemming from the plant’s age.
In response, the company commissioned a new plant with a capacity of 1 million tonnes per year as part of a US$25 million investment.
However, this new plant is not yet operating at full capacity due to a shortage of clinker, forcing Khayah to rely on imports and excess clinker from other producers.
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During a plant tour, Group CEO Innocent Chikwata announced that the refurbished kiln plant is expected to be operational in the second half of 2025.
“Last year, we faced several issues in the cement industry, particularly with our kiln plant. We had to cease operations due to its unreliability,” Chikwata explained. “We are now embarking on a refurbishment project costing between US$15 million and US$20 million.”
Mr. Chikwata mentioned that Khayah is finalizing funding arrangements for the project.
“This is a monumental project, typically undertaken once every decade in a cement factory. Completing this refurbishment will not only stabilize Khayah Cement but also benefit the entire cement industry by ensuring a steady supply of raw materials,” Chikwata added.
The refurbishment will commence in the coming months once funding is secured. Preparatory work, such as demolishing the old plant to create space for new technology, is already underway. The project, expected to take 8 to 12 months, will involve phased upgrades to current operations, requiring components sourced from different countries.
Mr. Chikwata emphasized that this project aligns with the group’s support for Vision 2030, which includes several ongoing infrastructure projects.
“We see growth in infrastructure and housing, and completing this project promptly will allow us to participate in the country’s development,” Chikwata said.
Khayah Cement, rebranded in 2023 after being acquired by a consortium of local businesses in 2022, boasts the largest dry mortars plant in Zimbabwe, officially commissioned by President Mnangagwa in 2020. The plant can produce various dry mortar mixes, including the locally manufactured waterproofing cement, Watershield.
Chikwata reported positive market acceptance, with sales volumes and revenue growing steadily, averaging an 18.4 percent increase month on month up to May 2024. The current capacity utilization stands at 60 percent, with further growth anticipated by the end of the year due to robust market activity.
The company has also invested in bulk tankers to support ongoing structural developments in the country, particularly in road stabilization and concrete product manufacturing.
“We expect significant growth in the latter half of the year, driven by the government’s infrastructure and housing initiatives,” Chikwata concluded.
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