High inputs damage cement industry

High input costs have continued to plague the cement industry with the cost of electricity increasing by 60 percent, thereby causing a deficit in the supply and demand chain.

Pretoria Portland Cement Zimbabwe Director, Gavin Stephens, said the demand for cement had grown significantly in the second half of 2011 and that the manufacturing price has remained relatively stable.

Stephens said the costs of electricity increased by 60 percent, fuel by 39 percent, labour 16 percent, transport increased by 21 percent and raw materials also increased by 16 percent.

“PPC anticipates that current demand will level off in 2012,” he said. Mr Gavins said the National Railways of Zimbabwe played a significant role in the transportation of cement and fuel used in the industry as the industry continues to stabilise.

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