Mining & Trade News

Portland Cement launches US$100-million factory in Balaka

Portland Cement has launched a US$100-million cement factory in Balaka which is one of Malawi’s largest industrial projects consisting of a clinker plant with a production capacity of 2,000 metric tonnes per day resulting in cement output of 800,000 per year.

Minister of Finance, Economic Development and Decentralisation Honourable Joseph Mathyola Mwanamvekha, who officially commissioned the plant in Ng'onga, Balaka described the construction of such a huge factory as a milestone in Malawi’s industrialization drive which is crucial towards attaining Malawi 2063.

Mwanamvekha said: "Today marks a significant milestone in our journey towards economic transformation and industrial expansion. This ceremony is not just the launch of a factory. It is a strong demonstration of Malawi's commitment to building a more resilient, more productive and more competitive economy.”

“It is a step towards achieving the bottom-up economic transformation agenda, a strategic plan to transform our economy through manufacturing by attracting investments which create more jobs and more importantly development of Ng'onga area. Our manufacturing sector, a key driver of economic growth, job creation and industrialisation, has faced challenges, but today we celebrate our collective triumph over them."

Mwanamveka said the commissioning of the factory reflects the strong partnership between government and the private sector explaining that the Malawi Government is championing investments that create jobs, strengthen the country’s industrial base, promote import substitution, and contribute to long-term macroeconomic stability.

“The Balaka Cement Factory represents all these elements and stands as a model of transformative industrial investment.” he said.

Portland Cement Malawi is a subsidiary of China’s Huaxin Building Materials Group. Mwanamveka said that the confidence shown by Huaxin Group in choosing Malawi for such a significant investment is a testament to the progress that Malawi is making in improving the investment climate, ensuring policy consistency, and opening doors for responsible foreign direct investment.

“We value the advanced technology, global expertise, and substantial capital investment brought into the country through this partnership,” he said.

Mwanamveka said with this factory, Malawi will stop reliance on imported clinker and cement, stabilize supply, and sustainably support infrastructure development, housing, and commercial construction which directly supports the aspirations of Malawi 2063, particularly the pillars of Industrialization, Urbanization, and Economic Competitiveness.

While touting the plant as having the capacity to export, he said Government will not allow the company to export if the local supplies are not adequate because it wants to promote health competition on the local market to ensure that prices of cement are not prohibitive.

Portland Cement Board Chairperson Symon Msefula said the investment will help in addressing cement shortages in the country in so doing stabilizing prices that are impacted by importation of cement. “The project reaffirms our long-term commitment in contributing to Malawi’s development,” he said.

Huaxin Building Materials Group Vice President Wang Jiajun explained that the factory will benefit generations as the limestone deposit has over 100 years mining life. He explained that with the opening of the clinker plant, the company will release into the local economy US$50-million annually in foreign exchange which was being spent on importation of clinker and cement.

Chinese Ambassador to Malawi Lu Xu said the opening of the factory underlines the cordial relationship between Malawi and the People’s Republic of China.

“We are committed to work with the Malawi Government in developing the country,” said Lu.  

Member of Parliament for Balaka Rivirivi Constituency Chifundo Makande advised the communities around the factory to desist from vandalism and theft of the property.

Senior Chief Nsamala said the members of the community need to be proud of such a mega investment in their area as it is contributing to transformation of lives through employment and business opportunities.

Huaxin Cement which was founded in 1907 is among top 10 cement producers in the world with subsidiaries in a number of countries including Zimbabwe, Mozambique and South Africa.

Construction of the Balaka factory started in the fourth quarter of 2024 and has been completed within 11 months only. The investment will generate K35-million for government in form of taxes and an extra K1-billion in mining royalties annually and has created at least  500 direct jobs and over 2,000 indirectly.

The company has also undertaken a number of corporate social responsibility initiatives including gifts to Balaka District Hospital, donations of cement to Professor Borgsten of Mercy James Pediatric Care Centre at Queen Elizabeth Central Hospital in Blantyre, provision of cement to Cyclone Freddy victims, assistance to Beit Cure Hospital in Blantyre in 2025, and donation of food items to vulnerable households in the Ng’onga factory area.

The company is generating own electricity to power the factory and uses electric vehicles in running the Balaka factory as an environmental conservation measure.

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