Botswana cement sales declining-PPC

| Friday September 10, 2010 00:00

However, sales to the construction industry, which typically comprised about 20% of PPC's sales, were significantly lower, while Zimbabwe sales during July were impacted by a longer-than-planned plant shutdown. Normal sales resumed in that country during August, however.

Overall, the volume outlook for 2010 remained 'negative and uncertain', the company said during an investor road show.

Earlier in the year, CEO Paul Stuiver noted that the cement industry had entered its third consecutive year of decline.

However, he reiterated PPC's view that the longer-term volume outlook remained positive in line with historical trends, growth forecasts and regional infrastructure development plans. Stuiver told investors that he did not foresee cement capacity in South Africa rising over the group's next two financial years, but that it could begin to rise 'marginally' during its 2013 financial year.

The JSE-listed company recently announced an overhaul to its Western Cape capacity expansion plans in light of the more subdued market outlook.

It cancelled plans for the new R4,5-billion, 1,2-million-ton a year Se Kika project, in favour of a three-phase brownfield expansion plan at its Riebeeck and De Hoek facilities.

The new R3-billion replacement and expansion project would add a total capacity of 700 000 t/y of clinker capacity over a six-year time horizon. The initial plan envisaged a net gain of 700 000 t/y over a four-year horizon.-(Engineeringnews)