By JAMES KUNDA – 

LAFARGE Cement Zambia plans to double its cement production capacity from its two local factories, to meet the growing demand, chief executive officer Emmanuel Rigaux has said.

Mr Rigaux said in 2013, the domestic market for cement grew by 17 per cent when compared to 2012, largely driven by the continued increase in government infrastructure projects, mining expansion activities and to a smaller extent by individual home building projects.

He said in the company’s annual report that the absolute priority this year is to improve the level of customer service through innovation, refocus of sales and customer departments and logistical breakthrough solutions.

“Lafarge Zambia is planning to double its capacity in Ndola and Chilanga through debottlenecking and construction of a newline. This will enable us to remain the market leader and preferred supplier of construction solutions in Zambia,” he said.

Mr Rigaux said in 2013, production volumes improved by 105,000 tonnes, to 1,175,000 tonnes from 1,074,000 tonnes in 2012, representing a growth rate of nine per cent.

He said the volumes continued to improve, supported by the strong growth in the construction industry in domestic and export markets.

Mr Rigaux said domestic sales volumes grew by 18 per cent compared to prior year driven by strong cement demand, while export sales volumes declined by 25 per cent over the prior year due to increased focus on the domestic market.

“The second half of the year saw a sharp improvement in operational and industrial results both at our Ndola and Chilanga plants. Lafarge Zambia also implemented targeted cost reductions and logistical optimisations which enabled us to improve our operating margins,” he said.

Mr Rigaux said the financial position and cash flow of the company remained solid with strong cash position and no external debt.