Cement News tagged under: PPC

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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...

South Africa: PPC shares drop

24 May 2016, Published under Cement News

PPC Ltd shares plunged after it said talks with a credit ratings agency will probably lead to a downgrade. The company is preparing a capital raising of ZAR4bn (US$254m) to be used to reduce debt and fund expansion plans, PPC said in a statement. It said shareholders will be advised on the credit agency’s final decision when it has the information. PPC stock declined 18 per cent, its largest drop on record, to ZAR11.25 on Monday. Company shares are down 27 per cent for the year. To co...

Rwanda: rail and energy projects to boost cement demand

23 May 2016, Published under Cement News

The Rwandan government’s announcement of two major infrastructure projects is set to be a boon for the country’s cement producers, the Mail and Guardian Africa reports. The KivuWatt gas-water extraction project will take gas from Lake Kivu to generate 100MW of electricity by 2019, while the Dar es Salaam-Isaka-Kigali/Keza-Musongati (DIKKM) standard-gauge railway will link Rwanda with ports in neighbouring Tanzania. Busi Legodi, CEO of PPC Rwanda, has welcomed the new initiatives, notin...

Zimbabwe: PPC's Harare plant is half-way complete

15 April 2016, Published under Cement News

The construction of a new cement plant by Pretoria Portland Cement (PPC) in Harare is progressing as planned and is now 55 per cent complete. The plant is expected to produce 70.7Mta of cement when fully commissioned. This is in line with the South African parent company's strategy of growing its non-South African revenue from the current 21 per cent to at least 40 per cent before the end of this year. Sources at PPC told the Financial Gazette this week that the plant would be operatio...