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CHEGUTU: US$120m cement plant to start production in six months, set to reduce Zimbabwe’s imports with 1,500 tonne daily output
By Business Reporter
CEMENT manufacturing company, Shuntai Pvt Ltd, says it is targeting commissioning and start-up within the next six months, following the conclusion of a court dispute that had slowed progress.
The company was in a legal dispute with a local school, Bryden Country, over environmental and health concerns. The dispute was recently concluded by the High Court which ruled in favour of Shuntai.
The Chegutu facility is being developed as a fully integrated cement manufacturing plant using modern, environmentally friendly technology and is expected to boost local cement output once production begins.
Addressing journalists during a site visit on Wednesday, Shuntai Investments manager Zhao Zhiqiang said the project has now entered an advanced stage of equipment installation with total capital expenditure expected to reach about US$120 million by the time the plant becomes operational.
“So far, we have already invested over US$80 million and by the time we finish, total investment will be around US$120 million.
“We expect to complete and commission the plant within the next six months.
“We have delivered more than 50% of the equipment and the general completion has exceeded 55%. It is a strong vote of confidence in Zimbabwe’s economic direction and the potential of the Chegutu area,” Zhiqiang said.
The plant is expected to reduce reliance on imported cement, improve availability and contribute to price stability, while also creating hundreds of jobs and supporting local suppliers during both the operational and production phases.
“Our daily capacity is 1 500 tonnes of cement. Sometimes it can exceed 1 800 tonnes, but it cannot surpass that level.
“We have already employed around 300 locals, and we are expecting to employ 200 more locals when the plant gets commissioned,” he said.
The company stated that its main focus would be on supplying the local market to cut Zimbabwe’s reliance on imported cement and ensure stable supply and pricing, with exports planned only if there is excess production.
“We mainly focus on local sales, and we will prioritise the local sales. If we have extra capacity, then we will consider exporting,” Zhiqiang added.
Shuntai also said that environmental protection is one of its key focuses as they intend to gradually replace diesel-powered equipment with more sustainable, eco-friendly alternatives.
“We are phasing out diesel-powered equipment and adopting more environmentally friendly and green energy vehicles, even the dump trucks and front loaders are supercharged.
“We are phasing out diesel-powered equipment and adopting more environmentally friendly and green energy vehicles, even the dump trucks and front loaders are supercharged.”