Zimbabwe: Plant Mishap, Covid-19 Pressure Lafarge Into Loss

Lafarge Cement Zimbabwe recorded a $695 million loss within the procuring and selling period to December 2021 operations from a $5 billion income within the identical period final year.

The cement maker became weighed down by the negative impression of disruptions from the roof give procedure at its cement mills and the negative operate of the Covid-19 pandemic.

This led to a 21 percent decline in 2021 volume uptake and a subsequent loss sooner than tax of $364 million from the $3,2 billion income within the prior similar period final year.

The give procedure of the mill plant halted operations between October 2021 and mid-February this year, which adversely impacted the availability of its products within the marketplace.

Covid-prompted lockdowns meant Lafarge encountered challenges within the type of disruptions of disrupted work routines, social structures and disturbance of provide chains and operations.

Resultantly, the cement divulge’s income retreated by 35 percent to shut the year at $7,2 billion, a 35 percent decline from $11,1 billion within the identical period in 2020.

However, there became a 19 percent volume mumble within the dry mortar section as compared to the prior-year performance which skill of robust demand following the commissioning of the new automatic dry mortar plant earlier.

The firm’s operations at some stage within the period were moreover sustained by clinker sales.

“The combo of the Covid-19 prompted slowdown and the roof give procedure resulted in volumes declining for the year by 21 percent from the prior year as a results of the unfortunate industrial performance which became mainly attributable to the roof give procedure incident.

“No matter the cost containment efforts, the unfortunate industrial performance and the following decline in volumes weighed down the general performance of the firm to a loss sooner than tax of $364 million,” acknowledged Lafarge chairman Mr Kumbirai Katsande in a press originate accompanying Lafarge’s elephantine-year financials to December 2021.

Mr Katsande acknowledged the 2d half of of the year provided a relaxed financial atmosphere, which noticed a modest development in industry job owing to the slack re-opening of the economy, albeit under strict public health protocols.

In mutter to abet the firm’s key operations at some stage within the demanding instances, Lafarge contracted tainted long-term borrowings of $3,6 billion for the year under overview.

Going forward the cement manufacturing firm has hinted at continuing with its US$25 million three-pronged investment thought which noticed the installation of replacement energy infrastructure in 2020.

In 2021 the firm successfully executed and commissioned the automatic dry mortar plant, which leaves the firm with the Vertical Cement Mill project because the most productive outstanding capital project.

“The final investment project under the investment thought is the installation of the Vertical Cement Mill (VCM), earmarked to double cement milling capacity,” acknowledged Mr Katsande.

Essentially based entirely on compliance to environmental laws Lafarge indicated that it subscribes to the NetZero Pledge to lower carbon emissions by 2030 as fragment of the Holcim Crew world dedication.

“There might perhaps be never a letting up on continuous development to lower dust emissions and other environmental impacts,” he acknowledged.