World Report

Chilanga Cement serves both the home market and neigbouring countries

ncreasing construction activity as both Zambia and its regional neighbours focus on building up their infrastructure is good news for Chilanga Cement, which dominates the cement industry.

The company has played an important local role since it was established in 1949. It became the first of Zambia’s large state-owned firms to be privatised, and in 1995 was the first company to be listed on the Lusaka Stock Exchange. In 2001, it was taken over by its present majority owners, French-based world leaders in construction materials Lafarge, who have since put in major investment.

“We have spent a great deal of money putting the business right,” says Ian Coulter, the firm’s Managing Director. “We have a billion-dollar advanced capacity installation here in Lusaka, which represents a huge investment. The cooperation that we have received from the authorities and the regulatory bodies has been tremendous.”

Chilanga Cement employs 500 people at its two plants: one at Chilanga, near Lusaka, and the other at Ndola, serving the needs of the Copperbelt. Its flagship product is Portland Composite Cement, a blend of clinker, gypsum and limestone launched last year under the brand name MPHAMVU.

The company’s largest customer is the state-owned ZCCM Investments Holdings Plc (ZCCM-IH), formerly Zambia Consolidated Copper Mines. It also exports into neighbouring countries such as Malawi, Zimbabwe and Tanzania.

According to Mr Coulter, the company’s ambition is to be the lowest cost producer of cement in the region. “The production capacity of our existing facility has almost reached its limit,” he says. “We are now seriously looking at developing the company further. The way the market is developing, both domestically and internationally, that would mean installing considerable capacity, which would mean another factory.”