PPC Limited has signed a Memorandum of Agreement (MoA) with Sinoma Overseas Development Co. Limited (Sinoma Overseas) to cooperate on various initiatives aimed at enhancing efficiencies and expand production capacity at PPC Zimbabwe (Private) Limited (PPCZ).
While the key short-term objective is to improve efficiencies and increase clinker and cement production at the current PPCZ’s Zimbabwean operations, the collaboration will also extend to an assessment of the capital expenditure and investment requirements to potentially increase clinker and cement production from current levels by building a new integrated cement plant in Zimbabwe.
PPC CEO Matias Carderelli comments: “The signing of this MoA is of key strategic importance to PPC. 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. PPCZ’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.”
PPCZ MD Ndima Rawana, comments: “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. Collectively, we aim to improve efficiencies and production levels at our current assets and potentially establishing new clinker and cement production capacity in Zimbabwe.”
This step further aligns PPCZ with the PPC group’s strategic intent. The Awaken the Giant turnaround is based on unlocking internal value and pursuing value accretive strategic projects to deliver sustainable profitable growth for the benefit of all stakeholders.
Any potential new projects in Zimbabwe will be assessed strictly in line with the PPC group’s capital allocation framework and will remain subject to PPC and PPCZ’s rigorous internal and external investment hurdles and approval processes.
