AfriSam to expand in Eastern Cape

South African cement producer AfriSam announced that it had signed a lease agreement with the Coega Development Corporation (CDC) to establish a grinding and blending plant in Zone 5 of the Coega Industrial Development Zone.

The plant will have a production capacity of 740,000tpa and will supplement AfriSam’s existing supply of cement to the Eastern Cape market.

An Environmental Impact Assessment (EIA) is currently underway and construction of the plant will commence upon approval of the EIA. Pending the outcome of the EIA, this significant greenfield investment by AfriSam is due to come online in 2015.

“We are pleased about the conclusion of the agreement and are excited to have this new opportunity to establish an operational presence in the Eastern Cape, expanding our internal capacity,” said Stephan Olivier, Chief Executive Officer of AfriSam South Africa.

AfriSam already has a well-established market presence in the Eastern Cape, which is supplied with cement from AfriSam’s Ulco plant in the Northern Cape. The company has existing distribution depots in Queenstown and East London. These depots would ideally be complemented by the planned milling plant and distribution depot at Coega, AfriSam confirmed.

“The new operation will benefit our customers in the Eastern Cape directly through increased guarantee of supply and shorter product lead times. The plant will also provide employment for sixty people, with an additional thirty employment opportunities created through service providers,” Olivier said.

An added advantage offered by the Coega IDZ milling plant is the high standard of infrastructure as well as the proximity to the Port of Ngqura, which makes it cost-effective to import raw materials required for the manufacture of cementitious material.