Cement News tagged under: PPC

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DR Congo: CIMKO plant nears commerical production

04 October 2016, Published under Cement News

This October the US$270m CIMKO plant owned jointly by Lucky Cement and Groupe Rawji located 240km (150 miles) west of the capital, Kinshasa, will start producing cement and work towards its 1.2Mta cement capacity. The project has been financed by lenders including the African Development Bank, the International Finance Corporation, Denmark’s Export Credit Agency EKF and by Habib Bank Ltd. The Democratic Republic of Congo's Prime Minister, Matata Ponyo Mapon, said his government wi...

South Africa: PPC sets terms for its US$280m rights issue

12 September 2016, Published under Cement News

PPC has set terms for its ZAR4bn (US$280m) rights issue after the deal was almost unanimously approved by shareholders at the start of August. The rights issue has been talked about by the company since December 2015. Yet it has become all the more urgent and complex since S&P downgraded the company’s credit rating from A to BB- in May. “That triggered the need for the capital increase,” a banker on the deal said. PPC is offering 1bn new shares at ZAR4/share, a discount of 55.5 per c...

PPC increase revenue and volumes in 3QFY15-16

06 September 2016, Published under Cement News

PPC reported a nine per cent YoY rise in quarterly sales revenue, commenting that sales revenue in South Africa increased two per cent and volumes by at least nine per cent in the company's 3QFY15-16. However, revenue outside of South Africa was even stronger, growing 19 per cent as a result of significant volume growth, newly commissioned plants in Rwanda and gains made through currency translations. CEO of PPC, Daryll Castle said, “the group's revenue has improved by six per cent suppor...

Chinese firm invests in Zimbabwe

26 August 2016, Published under Cement News

Mortal Investments Manufacturing Co announced that it is constructing a 1Mta plant in Redcliff, Zimbabwe. The arrival of the Chinese firm in the country is expected to intensify competition in the market that has been dominated by Lafarge and PPC. Mortal Investments is the second producer to invest in the region, following the lead of Sino-Zimbabwe Cement. This is positive news for locals, as it will bring a further 400 jobs to a town that has been struggling with high levels of unemploym...

PPC Zimbabwe plant project on track

03 August 2016, Published under Cement News

According to CEO, Darryll Castle, the construction of PPC’s new plant in Zimbabwe remains on track for completion in 2016, despite riots in the country and restrictions remaining on some South African goods. The new mill, with an expected capacity of 0.7Mta, is crucial to reducing the company’s costs, Mr Castle said. "Even if the volume is not required because Zimbabwe’s economy slows, the project still makes sense from a cost-optimisation process." This project in Zimbabwe is one of four...

PPC

22 July 2016, Published under Cement News

Last month saw PPC stock fall to a 13-year low following its downgrading by S&P Global Ratings, according to recent reports by Bloomberg. In response to the downgrade, the company announced plans to raise over ZAR4bn (US$279m) to tackle rising debt from its ongoing investments in new projects and challenging trading conditions in its home market of South Africa. This triggered a 6.2 per cent slump in its stock, taking it to its lowest level since March 2003. The cement producer is reporte...

Rwanda: PPC revenues boosted by Cimerwa

05 July 2016, Published under Cement News

Cimerwa Ltd’s contribution to Pretoria Portland Cement’s (PPC) revenues helped cushion the company’s turnover in the six months ending 31 March 2016. According to the Johannesburg Stock Exchange, PPC holds a 51 per cent stake in the Rwandan cement company. While PPC’s results show bases in Botswana, South Africa and Zimbabwe were depressed due to a shrinking market and falling prices, a recently-commissioned plant in Rwanda added almost ZAR200m (US$13.5m) to the group’s revenue. Despit...

South Africa: PPC lines up banks for rights issue

28 June 2016, Published under Cement News

South African’s largest producer, PPC, has announced that it has come to an agreement with four banks to underwrite its proposed ZAR4bn (US$260m) rights issue, Reuters Africa reports. The Standard Bank of South Africa Limited, Nedbank Limited, Absa Bank Limited and FirstRand Bank have been appointed to oversee the offer process, with Standard Bank also taking the role of global co-ordinator. An extraordinary general meeting is expected to be convened on or around 27 July 2016 to approv...

PPC planning for the long term

17 June 2016, Published under Cement News

South Africa's cement market expanded 7.7 per cent in 2015, but a more competitive environment including new entrants and imports has placed pressure on incumbents, not least the market leader PPC. The company is now facing short-term funding issues as it seeks to execute new projects in Ethiopia, DR Congo and Zimbabwe, but in the long term a more diversified portfolio will strengthen the company. Updating shareholders this week, PPC reported that operating profits fell by three per cent ...

PPC sees six-month revenues and volumes flat

14 June 2016, Published under Cement News

In its trading figures for the six months to 31 March 2016, PPC saw its operating profits fall by three per cent to ZAR733m (US$48m). Revenues were flat at ZAR4501m (US$294m), down one per cent on the same period in 2015. Likewise, volume sales were down one per cent overall, although in South Africa volumes rose by one per cent. Despite higher volumes, revenues in South Africa fell due to lower prices, while in the rest of Africa revenues rose by six per cent to ZAR1367m (US$89m). This f...