Displaying items by tag: PPC

South Africa: The South African cement industry faces plant closures and job losses due to an influx of ‘cheap’ cement imports, according to a recent study. Chronux Research found that cement imports to South Africa rose by nearly 20% in 2023, despite logistical challenges at ports. The firm's cement import monitor shows imported cement volumes increased by 18% in 2023 to 979,000t, with a notable 43% year-on-year growth in the second half of the year.

"Cement imports continue to be able to navigate the port and supply chain issues in South Africa with minimal impact," reads the report, highlighting the government's lack of protective measures for local cement producers. Vietnam, Mozambique, Namibia, Saudi Arabia and the UAE were the primary sources of these imports.

Chronux Research director Rowan Goeller expressed confusion over how imports are bypassing the country’s congested ports. The local industry has been lobbying for tariff protection against imported cement. The capacity of South Africa's cement production stands at 20Mt/yr, but only 12Mt/yr is currently produced.

A report by PPC Cement and the Gordon Institute of Business Science revealed in September 2023 that South Africa’s cement industry is operating at two-thirds of its capacity, citing displacement by imports and low demand as major factors. This underutilisation could lead to job losses and government revenue collections, according to the report.

Economic adviser for the Optimum group, Roelof Botha, raised concerns about the quality standards of imported products and their impact on local employment. He said "The extent to which the imported product displaces the locally manufactured products will ultimately also replace domestic employment," highlighting the government's slow response and the potential risks associated with poor-quality imports in construction.

Rwanda: South Africa-based PPC has completed the sale of its 51% stake in the Rwandan cement producer to Kenya-based Devki Group subsidiary National Cement, for US$42.5m. The divestiture advances PPC's strategic exit of Central and East Africa. As a result, the group's financial position is now cash positive. It had previously reduced its debt by 50% to US$20.3m from US$40.7m between March 2020 and September 2023.

PPC CEO Matias Cardarelli said "I am pleased with the timely completion of the sale of our stake in Cimerwa. The disposal allows us to focus on our core Southern African markets, where we see opportunities to drive improved profitability and secure a more sustainable return on capital."

Rwanda: CIMERWA increased its sales by 12% year-on-year to US$82.5m during the 2023 financial year, which ended on 30 September 2023. Its profit also grew, by 19% to US$16.1m. KT Press news has reported that the National Cement subsidiary, at that time a subsidiary of South Africa-based PCC, attributed the growth to its optimisation of production processes, cost savings initiatives and revamped route-to-market model for both the domestic and export markets.

Chief executive officer James Oduor said "We are very proud of this past year's financial performance. We remain very optimistic that the optimisation of selling prices as well as distribution channels for both domestic and export markets will translate to an even better performance in the coming year." He added "We have put in place a strategy and roadmap to guide actions around environmental, social and governance (ESG) and remain steadfast in our commitment to continually deliver superior value to our customers, shareholders and the nation as whole, all while fulfilling on our promise to continue strengthening Rwanda."

South Africa: Matias Cardarelli has been issued a work permit by the government and will formally become the chief executive officer (CEO) of PPC from 1 December 2023. He will succeed Roland van Wijnen in the post. The appointment of Cardarelli was announced in September 2023 with a start date at some point in the final quarter of 2023. Wan Wijnen’s contract as CEO was extended from August 2023 to the end of December 2023 to allow for a handover and transition period.

Rwanda: Kenya-based Devki Group subsidiary National Cement signed a deal to acquire CIMERWA from International Holdings Proprietary Limited, a subsidiary of South Africa-based PPC, and minority shareholders on 17 November 2023.

KTPress News has reported that CIMERWA’s chair, Regis Rugemanshuro, said “We look forward to welcoming National Cement as our new shareholder. We are confident that they have the financial and technical resources required to support CIMERWA’s growth and expansion in line with our vision and their ambitions in the region.”

Narendra Raval, chair of Devki Group, said “We are committed to a long-term strategic partnership with CIMERWA. We believe in the potential for this business and its people and are excited by the opportunity to support infrastructure development in the region in line with our strategic expansion ambitions.”

South Africa: PPC recorded consolidated sales of US$335m during the first half of the 2024 financial year, up by 21% year-on-year from US$277m during the first half of the 2023 financial year. Meanwhile, its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 47%, to US$58.1m from US$39.6m. The group increased its cement sales volumes by 4%, and currency effects further helped to offset a 16% rise in its cost of sales. Cement volumes fell in South Africa, however PPC noted a locally ‘resilient performance’ despite a challenging market there and in Botswana, a ‘strong recovery’ in Zimbabwe and a ‘continued positive trajectory’ in Rwanda, via its subsidiary CIMERWA.

PPC said “The key focus for PPC will remain on its southern Africa businesses, including South Africa, Botswana and Zimbabwe. This includes continuing to improve its profitability and enhance returns through further operational efficiencies and cost containment measures. Without a significant increase in infrastructure spending and South African gross domestic product, South Africa's cement demand is expected to remain subdued and sustainability is therefore dependent on both capital discipline and margin management. Notwithstanding, PPC South Africa remains well positioned to benefit from an increase in cement demand, with additional capacity readily available to capture an upswing in demand without significant additional capital expenditure being required.”

Zimbabwe: PPC Zimbabwe has appointed Albert Sigei as its managing director from the start of 2024. He succeeds Kelibone Masiyane in the post, according to the Chronicle newspaper. Masiyane was appointed as the managing director of the subsidiary of South-Africa based PPC in 2016, having joined the company in 1994 as a trainee electrical engineer at the Colleen Bawn Plant.

Sigei is currently PPC’s Head of Strategic Initiatives, a post he has held since February 2023. Before this he was the chief executive officer (CEO) of Cimerwa PPC in Rwanda from 2000. He worked for over 17 years for LafargeHolcim and its subsidiaries becoming the CEO of LafargeHolcim Malawi from 2016 to 2019 and the chief operations officer of the East African Portland Cement Company (EAPCC) in Kenya in 2015. Earlier in his career he worked for PriceWaterhousCoopers. A graduate in mechanical engineering from the University of Nairobi, Sigei holds a number of qualifications in accountancy and business.

Zimbabwe: South Africa-based PPC says that it has completed a solar plant tendering process for its Colleen Bawn and Bulaweyo plants. Chief executive officer Roland van Wijnen said that a 30MW captive plant has been approved by the board, generation licenses have been approved and that the project site has been cleared ahead of construction.

Van Wijnen added that PPC continues to see Zimbabwe as a ‘strong market for the group’ despite some economic challenges, explaining “We took a relatively long operational stop to ensure our operations in the country are future-proof and improved from an environmental standpoint. The plant is now performing well from both an output and cost-per-tonne perspective. We knew our earnings before interest, tax, depreciation and amortisation (EBITDA) would be reduced due to this operational stoppage. We have since stepped up production and reclaimed market share and we anticipate EBITDA to meet or exceed full year 2022 levels in full year 2024.”

Zimbabwe: South Africa-based PPC has raised its stake in PPC Zimbabwe from 71% to 90%. In an operating update, PPC told investors that PPC Zimbabwe increased its sales by 19% year-on-year in the five months to 31 August 2023. Meanwhile, the group’s South African business raised its sales by 58% year-on-year over the same period. PPC attributed the growth to cost reductions and price increases across both markets, as well as ‘exceptionally strong’ growth in its cement volumes in Zimbabwe. Overall, cement volumes rose by 3% year-on-year.

PPC was previously reported to be considering selling its entire PPC Zimbabwe stake for US$200m in February 2023.

South Africa: PPC has appointed Matias Cardarelli as its new chief executive officer for four years, with effect from 1 October 2023. He will replace Roland van Wijnen, whose contract began in 2019. Cardarelli has held various positions at private cement companies, including chair of Natal Portland Cement (NPC), part of InterCement Group. He also led the operational and financial turnaround of Amreyah Cement in Egypt and the expansion of Yguazú Cementos in Paraguay.