Maravi

Satisfy local market before considering exporting, Rupiah urges Lafarge

Satisfy local market before considering exporting, Rupiah urges Lafarge
Written by Kabanda Chulu
Saturday, November 15, 2008 4:48:31 AM

PRESIDENT Rupiah Banda has advised Lafarge Cement Zambia to satisfy the local market before considering exporting the commodity to other countries.

And President Banda directed the management at Lafarge Cement to cooperate with the Ministry of Commerce, Trade and Industry and other stakeholders to ensure that retail prices of cement are not subjected to manipulation by traders.

Meanwhile, Lafarge Cement division president Guillaume Roux has said the new cement production plant has been built with features that would allow less emission of dust and other related particles.

Current wholesale prices by Lafarge stand at K42,000 per 50 kilogramme pocket but traders sell the same product at K65,000.

Officially commissioning the US $120 million new cement manufacturing plant in Chilanga yesterday, President Banda said the people of Zambia have been subjected to escalating cement prices in the past and now an opportunity exists for them to benefit from the new plant through lower prices.

“The rising price of cement in the past few years has been a cause of concern for government, investors and the general public and many Zambians have been subjected to escalating cement prices in the past,” President Banda said. “And may I take this opportunity to appeal to Lafarge management to give priority to the domestic market before considering exports, which should be considered after satisfying the local market.”

He said the commissioning of the plant was timely in that the construction sector was booming with many residential and commercial properties being built.

“We expect the use of cement to expand further as we embark on other economic ventures such as the multi facility economic zones, new hydro-power projects, roads and other infrastructural projects,” said President Banda. “And with the coming on stream of the new plant, I have been informed that the company’s output of cement will double from its current level and that cement output will be far in excess of current demand and the entire nation expects the price to come down so as to end profiteering in this commodity.”

And Roux, who is based in France, said Lafarge International has embarked on establishing 50 per cent of its operations in emerging markets like Zambia.
He said the new plant at Chilanga has state-of-the-art modern features that would allow less emission of dust and other related particles.

“We also utilised three million man-hours in the construction of the plant but with only two minor accidents hence our safety level is high and we are committed to our workers who are essential and we are also involved in various community projects,” said Roux.

And Lafarge Cement Zambia chairman Muna Hantuba said cement would now be delivered at the ‘door steps’ of every customer.

“This is a very good achievement to bring the plant to this level and we received favourable response from banks, the capital markets and other stakeholders,” said Hantuba.

Labels: LAFARGE, LOCAL MARKETS, RUPIAH BANDA

posted by MrK @ 4:50 AM