South Africa: PPC (Pretoria Portland Cement), South Africa's largest cement maker, may increase production in the country by as much as 4% in 2013, according to its new chief executive Ketso Gordhan.
"South Africa is in a very tough environment at the moment," said Gordhan, who added that an oversupply of cement, partly caused by new entrants, would have an impact on the market in the first quarter of 2014. South African cement sales fell by 3.8% in the third quarter of 2012 as widespread strike action and slower economic growth sapped demand. However, PPC's sales rose by 8% in the three months to 30 September 2012.
Competitor Sephaku Holdings is expected to begin construction of a new production plant in 2013. Macquarie First South Securities analyst Peter Steyn said that PPC was, "unlikely to be unscathed" by the new arrival.