PPC targets African expansion strategy

PPC targets African expansion strategy
30 January 2013

PPC said in a trading update that it is pursuing additional buyout opportunities in Africa, which it expects to announce during the year. In its 4Q12 report ended December, it said last year’s 51% acquisition of cement maker Cimerwa in Rwanda for US$69.4m was a 'significant step' in its African expansion strategy. It also said receipt of its Zimbabwean indigenisation certificate in November was an important step into Africa.

Group chairman Bheki Sibiya said the quarter was characterised by growth in cement volumes in SA, Botswana and Zimbabwe. This came after cement markets had slumped dramatically after the onset of the global recession and the end of the 2010 FIFA World Cup.

PPC said the renewed growth trend was experienced across all provinces in South Africa except the Eastern Cape, where heavy rains and imports hit demand.

"The effect of this positive demand has been partly offset by some product-sourcing challenges over the period," Mr Sibiya said. He said these problems were mainly because of lower-than-planned production at the group’s Dwaalboom factory in Limpopo, but that normal production had since been restored.

However, he announced the selling environment for cement-related products remained "challenging despite some price increases" in South Africa and Zimbabwe.

Published under Cement News

Tagged Under: 4Q12 PPC Botswana PPC