PPC buys majority stake in Rwanda cement producer

PPC buys majority stake in Rwanda cement producer
13 December 2012

South Africa’s leading cement producer Pretoria Portland Cement (PPC) has acquired a 51 per cent equity stake in Rwanda-based cement producer Cimerwa Ltd. The deal is worth a total cash consideration of US$69.4m.

Cimerwa is situated in southwestern Rwanda and is the African country’s sole cement producer. It has a current capacity of 100,000tpa and is constructing a 600,000tpa expansion that will be commissioned in 2014.

In addition to shareholder equity contributions‚ Cimerwa is in the process of finalising US$104m debt financing to complete the expansion project.

PPC CEO Paul Stuiver said the transaction is a further step in PPC’s commitment to invest in sub-Saharan Africa and it is very confident about Rwanda.

“The Cimerwa plant is located in a challenging but very strategic region in east Africa‚ which currently lacks significant cement production capacity‚” he said.

Current demand for cement in Rwanda is estimated at 350‚000tpa. Based on Rwandan and the surrounding region´s positive economic outlook‚ regional cement demand is projected to increase to 1Mt during the next decade.

Stuiver added; “Combined with our recent investment in Ethiopia‚ the Cimerwa transaction will increase PPC revenue outside of South Africa to more than 30 per cent by 2015/2016.”

Published under Cement News