Cement giant hit-hard by price slash (14-08-07)

rtedly hard hit after failing to obtain clinker and gypsum ,key ingredients in the production of cement-from Zimbabwe’s Portland Holdings Limited (PHL) that stopped manufacturing the product in the aftermath of the price blitz.

Zimbabwe’s Portland Holdings Limited (PHL) which is part of Pretoria Portland Cement (PPC) is said to be hampered by high input costs and unrealistic prices which have led to a temporary stoppage of operations at one of its subsidiaries, Colleen Bawn in Matabeleland South.

Reports obtaining from Malawi say the failure by that country’s cement manufacturing giant to obtain key ingredients used in the manufacture of cement has led to cement shortages in that country and a drastic rise in the price of the product.

“It is a thing that has never happened in the country (to increase the price of cement by this percentage-on average by 14 percent (K150 per 50 kg bag) and it pains us that this is happening when the economy is booming,” Nestor Msowoya, the Malawi’s Lafarge Portland commercial manager talking to Malawi’s Daily Times.

“The situation looks grave and there are no signs of an immediate solution in sight. We (Portland Cement) are not sure whether the little clinker that trickles from Zimbabwe will continue. We have asked our suppliers in Zimbabwe to closely work with relevant authorities…”

No comment could be obtained from PHL Managing Director Trevor Barnard on the latest development. He recently told the paper that the price cuts had impacted negatively on their operations.

This follows reports last month that the country faces cement shortages following a move by Zimbabwe’s Portland Holdings Limited (PHL) to stop manufacturing the product in protest over the government order on price slashes after they registered losses against production costs- CAJ News.