25 September 2023

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.”

Liberia: Liberia Cement Corporation (CEMENCO) has introduced Superplast 22.5X, a new product that is specifically designed for use in plastering and laying blocks and tiles. Speaking at the launch on 25 September 2023, William Gaignard, CEMENCO’s General Manager, emphasised the historic importance of this product, highlighting its overall affordability, making it accessible for all Liberians to build their homes at a lower cost. Expressing his desire to witness a shift from mud houses to sustainable and economical homes made using concrete, Gaignard said that 50kg bags of Superplast 22.5X would cost 19% less than the average price of cement in Liberia.

"Today marks a significant moment in our journey here at CEMENCO,” said Gaignard. “When we do business, we have to assess our position in the market. Are we the leaders? If not, we must find solutions to become leaders. If we are the leaders, we must find solutions to maintain our position. This requires innovation, understanding the challenges faced by citizens and working towards solutions."

Vice President of the Republic of Liberia, Dr Jewel Howard-Taylor, who was present at the launch, praised CEMENCO for its forward-thinking approach in ensuring affordable cement for non-load-bearing applications in the local market. However, she urged the company to provide clear guidance to the public on the proper usage of the cement to avoid misuse, particularly in the production of load-bearing structures, for which it should not be used.

Ireland/US: CRH has announced that it has completed the latest phase of its share buyback programme, returning a further US$1bn of cash to shareholders. Between 30 June 2023 and 22 September 2023, 17.7 million ordinary shares were repurchased on Euronext Dublin and the London Stock Exchange. This brings total cash returned to shareholders under CRH’s ongoing share buyback programme to US$6bn since it began in May 2018.

CRH has also said that it has entered into non-discretionary arrangements with Merrill Lynch International and BofA Securities to repurchase and additional US$1bn of ordinary shares on CRH’s behalf. This latest buyback commenced on 25 September 2023 on the London Stock Exchange and no earlier than 23 October 2023 in the US due to the requirements of Rule 10b-18 under the US Securities Exchange Act of 1934.

Uganda: President Yoweri Kaguta Museveni has officially commissioned a new vertical roller mill at Tororo Cement’s plant in Tororo. The German-built mill cost US$25m and can produce 150t/hr of cement. The operator claims it to be the ‘most sophisticated’ in East and Central Africa. It is in the process of installing an additional 300t/hr mill, to bring its overall grinding capacity to 5Mt/yr. It is also planning the construction of a 5000t/yr integrated plant in Moroto, to eliminate the company’s need for imported clinker, which it claims will be launched within the next five years.

Speaking at the event, Museveni congratulated Tororo Cement’s chair Hasmukh Kanji Patel for the company’s ‘enormous contribution to Uganda’ and called for Ugandans to support foreign-owned companies, as they support national development, pay local taxes and contribute to gross domestic product. He said "I'm very glad that Mr Patel came here, that we privatised a government factory and now he has expanded it. This is why we had to go against people like Idi Amin who were ignorant. Ugandans should stop saying ‘Indian factory.’ This this is not an ‘Indian factory,’ it is a Ugandan factory regardless of who has built it.”

Nigeria: The Cement Producers Association of Nigeria (CPAN) has warned that the federal government’s plan to introduce concrete roads will nearly double the price of cement. It also called on the administration to ‘permanently address’ perennially high cement prices in the country by encouraging greater participation in the sector.

CPAN, in a statement jointly signed by its National Chair, Prince David Iweta and National Secretary Chief Reagan Ufomba, commended the government’s stance on converting the country to concrete-based roads, but suggested greater emphasis on road designs that allow both concrete and asphalt pavement to run concurrently and provide ample time for a smooth transition that allows contractors and producers time to adjust.

The statement read “While we commend the Honourable Minister’s position on concrete-made roads, we warn of the dire consequences if the supply end is not properly addressed. In fact, it would amount to dereliction of duty not to intervene. And the time is now. To do otherwise is to continue in a worsening pipe dream that prices would suddenly drop for this essential input that will continue to drain the purse of Nigerians, render them homeless, encourage chaos between demand and supply, and worsen the infrastructure deficit it sets out to cure, and lead to an unprecedented price hike.”