Leading cement producer PPC Limited has signed a Memorandum of Agreement (MoA) with Sinoma Overseas Development Co. Limited aimed at improving operational efficiencies and expanding clinker and cement production capacity in Zimbabwe.
The agreement, announced on Tuesday, will see the two companies collaborate on upgrading efficiencies at PPC Zimbabwe (Private) Limited’s existing operations, while also assessing the feasibility of constructing a new integrated cement plant in the country.
PPC chief executive officer Matias Cardarelli said the move formed part of the group’s broader “Awakening the Giant” turnaround strategy, which is focused on unlocking value across its operations.
“Our ‘Awakening the Giant’ turnaround strategy continues to advance across the group,” Cardarelli said.
“This includes particularly the Zimbabwean operations, where we believe there are additional, and significant, opportunities to be unlocked internally, together with exciting potential for future growth.
“Like we recently did in South Africa, it is now time to work with Sinoma Overseas to improve efficiencies at our current plants and to seriously assess the feasibility of the construction of a new integrated cement plant in the country.”
He added that PPC remained optimistic about growth prospects in Zimbabwe’s construction sector.
“We are the leading cement producer in Zimbabwe, with an excellent footprint and we are operating in an environment where the construction sector is showing solid growth potential,” Cardarelli said.
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“PPC Zimbabwe’s cement sales and results have increased over the past two years, and we are now starting to prepare ourselves for the next growth phase.”
PPC Zimbabwe managing director Ndima Rawana said the partnership with Sinoma Overseas would allow the company to tap into global expertise in cement technology and engineering.
“We are looking forward to working with Sinoma Overseas, which is the world’s leading integrated solutions provider for cement technology, equipment and engineering services, and being able to benefit from their vast experience and expertise,” Rawana said.
“Collectively, we aim to improve efficiencies and production levels at our current assets and potentially establishing new clinker and cement production capacity in Zimbabwe.”
According to PPC, any potential investment in a new plant will be assessed in line with the group’s capital allocation framework and will remain subject to internal and external approval processes.
The development comes as Zimbabwe’s construction and infrastructure sectors continue to show signs of recovery, driving increased demand for cement and related building materials.
