Rwanda: PPC has commissioned its 600,000t/yr cement plant in Rwanda to offset declining sales in South Africa as its expansion into African cement markets gathers pace. The company plans to derive 40% of its revenues from the rest of Africa by 2017.
"We see the population doubling and becoming wealthier, a lot of infrastructure spend taking place and new cities being built that aren't there today," said Darryll Castle, PPC's Chief Executive. "If we can maintain our market share and exposure in Africa, we have to double the size of the business in well under 10 years. We see Africa as a very positive environment and PPC becoming a major player in a big growth area."
Castle said that the company ultimately saw PPC as a global player, but were focusing on Africa first, although it would be open to global opportunities when they arose. The new vision is for PPC to become a world-class supplier of materials and solutions to the basic services sector and establish a vertically-integrated materials business. This business unit will house PPC's ready-mix, aggregates and related building materials businesses to offer clients end-to-end solutions. A bolt-on acquisition has been earmarked for early 2016. Castle stressed that 70 – 80% of PPC's focus would remain on its core product of cement, but over time it would gain earnings and revenue that was not currently core to its business.
According to Castle, construction of the US$280m, 1Mt/yr cement plant in the Democratic Republic of Congo and the US$85m, 700,000t/yr mill in Harare were progressing well, with both on track for commissioning at the end of 2016. He said that the 1.4Mt/yr cement plant in Ethiopia would cost around US$170m, with commissioning scheduled for the second quarter of 2017.
