Shayona Cement Corporation says it plans to achieve import substitution by doubling cement output come June next year.
Speaking to journalists in Lilongwe on Tuesday, the firm’s managing director Jitendra Patel said they have invested K10 billion in the third phase of their Kasungu factory expansion.
He said despite Covid-19 impact on the economy, they are undertaking phase three construction of the factory to produce 2 500 metric tonnes (MT) of cement per day from the current 900MT.
Patel said the expansion means creation of more jobs, saving foreign exchange and inducing a drop in cement prices on the market.
He said: “We have taken a calculated risk. Originally we anticipated to commission the phase three project by end of this year, but due to Covid-19 impact we are expecting to commission it in June next year.”
The cement manufacturer also plans to expand to the Northern Region by constructing another factory in Mzuzu to produce about 100MT per day.
But Patel said the success of the projects will depend on the availability of stable electricity supply.
He said the company currently employs over 1 000 workers.
In an interview last week, Minister of Trade Sosten Gwengwe said the operationalisation of the Control of Goods Act will protect local manufacturers to enable import substitution.
He said the new law will ensure that only those products in deficit on the market are authorised to be imported.
Gwengwe said the law is in line with the Buy Malawi Strategy.