South Africa: cement output to increase marginally

South Africa: cement output to increase marginally
Published: 02 September 2010

Cement capacity in South Africa would only increase marginally in 2013, cement and lime producer Pretoria Portland Cement (PPC) said yesterday.

PPC, the cement and lime producer, said on Wednesday cement capacity in South Africa would only increase marginally in its 2013 financial year and would not increase during its next two financial years.



This is despite plans Sephaku Cement, part of listed Sephaku Holdings, has planning to establish new cement plants in the North West and Mpumalanga at a total cost of ZAR3.3bn.

The plants are scheduled to come on-stream in 2012.

In addition, a joint venture that includes Woman Investment Portfolio Holdings, SA Continental Cement, Chinese cement group Jidong Development Group and the China-Africa Development Fund, plans to invest R1.65bn in a new cement plant north of Brits in Limpopo.



This plant is scheduled to be commissioned in mid-2012. This is despite plans Sephaku Cement, part of listed Sephaku Holdings, has to establish new cement plants in the North West and Mpumalanga at a total cost of R3.3bn that are scheduled to come on-stream in 2012.

In addition, a joint venture, including Woman Investment Portfolio Holdings, South African Continental Cement, Chinese cement group Jidong Development Group and the China-Africa Development Fund, plans to invest R1.65bn in a new cement plant north of Brits in Limpopo, with this plant scheduled to be commissioned in mid-2012.



However, PPC chief executive Paul Stuiver yesterday said construction of an integrated cement plant, especially on a green fields site, presented a larger challenge than most may expect.

 Stuiver said the total time “to market” for such plants were typically 27 to 33 months.

However, Paul Stuiver, chief executive of PPC, said on Wednesday that construction of an integrated cement plants, especially on a green fields site, presented a larger challenge than most may expect.



Stuiver said the total time “to market” for such plants were typically 27 to 33 months.

He added that overall cement industry sales data was still unavailable but PPC sales were still declining though recently at a lower rate and the volume outlook for this year remained “negative and uncertain”.