
Displaying items by tag: South Africa
Matsiloje Portland Cement unlikely to reopen without government support for block on imports
16 April 2019Botswana: Rachit Josh, the managing director of Matsiloje Portland Cement, say that the company will struggle to reopen without government support to block imports. The cement producer closed its plant at Matsiloje, near Francistown in January 2018, according to the Monitor newspaper. Josh blamed cement imports from South Africa as being a particular concern.
In June 2018 the Ministry of Industry, Trade and Investment said it was starting to introduce restrictions on imports restricting imports to 70% locally sourced product. However, it is unclear when these measures will be implemented.
Matsiloje Portland Cement is a subsidiary of Nortex Group. Its integrated plant had a production capacity of 30,000t/yr. The company produced the lime it used for its cement and it sourced other raw materials from South Africa and fly ash from a power station at Morupule.
Kenya/South Africa: Kenya’s ARM Cement is fighting moves by minority investors in South Africa’s Mafeking Cement to buy it out for a nominal sum. ARM Cement is attempting to sell its 70% stake in the company for around US$3m as part of its administration process, according to the Business Daily newspaper. Mafeking Cement owns limestone reserves in north-west South Africa and ARM Cement originally took a stake in the company to raise investment and eventually build a cement plant.
However, the minority investors have invoked parts of the shareholders’ agreement and filed a court application in South Africa that, if successful, would allow them buy out ARM Cement’s stake for a nominal price less than US$1. ARM Cement’s administrators PricewaterhouseCoopers have taken steps to counter the move.
Algeria: LafargeHolcim Algeria has exported 10,000t of white cement to South Africa via the port of Oran to Cape Town. The consignment consists of its ‘Super White’ product from its Oggaz plant, according to the Algeria Press Service. The local subsidiary of LafargeHoclim operates two cement plants, at M’Sila and Oggaz respectively, and it runs a third plant at Biskra as a joint venture with Souakri Cilas Group.
PPC says that Zimbabwe business remains resilient
08 March 2019Zimbabwe: South Africa’s PPC says that its business in Zimbabwe has remained resilient despite the economic ‘challenges’ experienced over the last year. It said that it had kept its pricing in line with inflation and that demand remained ‘strong.’ Its cautionary measures in the country include: keeping 90% of input costs locally sourced; increased exports; continuing clinker imports from South Africa; and share purchases of PPC on the Zimbabwe Stock Exchange. Previously, PPC reported that growth had been low in Zimbabwe in 2018.
South Africa: Sephaku Cement’s revenue fell by 3.1% year-on-year to US$161m in 2018 from US$167m in 2017. Its net profit dropped by 19% to US$3.3m from US$4.07m. The subsidiary of Nigeria’s Dangote Cement said that the general poor economy in the country led to an estimate 5 – 10% decline in industry sales volumes. It blamed ‘intense’ competition between clinker grinding plants, producers and importers. Its sales volumes of cement fell by 6.4%.
Concrete Institute of South Africa calls for ban on cement imports
26 February 2019South Africa: The Concrete Institute says that the International Trade Administration Commission (ITAC) should impose a temporary ban on cement imports to protect the local industry. The institute is preparing an application to the commission, according to the Business Daily newspaper. Bryan Perrie, its managing director, said that imports from Pakistan dropped in 2016 after tariffs were introduced. However, this has been replaced by imports from China and Vietnam. He added that prices have dropped ‘drastically,’ especially in coastal areas, that this is starting to effect jobs and cement producers are delaying expansion plans. The Concrete Institute represents PPC, AfriSam, Lafarge Africa, Sephaku and Natal Portland Cement.
PPC’s sales volumes fall by 3% in nine months to December 2018
05 February 2019South Africa: PPC’s sales volume of cement fell by 2 – 3% year-on-year in the nine months to December 2018. The cement producer said that, although prices had risen, the market had shrunk by up to 5%. Imports grew by 80% year-on-year for the January to November 2018 period. It added that its Sure Range product line had continued to gain market share against Portland Pozzolana Cement (PPC) and blended products. Outside of South Africa the company said that growth had been low in Zimbabwe and Democratic Republic of Congo due to local market conditions. Better performance was noted in Rwanda and Ethiopia.
South Africa: The Competition Tribunal has resumed hearings into allegations of cartel-like behaviour by Natal Portland Cement (NPC), Pretoria Portland Cement Company (PPC), Lafarge Industries South Africa (Lafarge) and AfriSam Consortium (AfriSam). It follows a referral by the Competition Commission following an investigation in 2015 that examined collusive conduct between the cement companies between 2008 and 2012. At the time PPC was granted conditional leniency and AfriSam and Lafarge settled with the Commission.
Johan Claassen to take early retirement from PPC
28 November 2018South Africa: Johan Claassen, the chief executive officer (CEO) of PPC, says he wants to take early retirement. He made the decision during a restructuring of the company’s board. It will now search for a replacement while Claassen stays in post until his successor is found.
Diversification bears fruit for PPC
26 November 2018South Africa: PPC reports that its strategy to expand into the rest of Africa has started to bear fruit, despite continuing challenges in many markets. Johan Claassen, the chief executive of PPC said that the group's diversified portfolio had enabled the company to offset the weaker South African performance with robust growth in its rest of Africa segment.
"We are very pleased with our rest of Africa operations, which grew volumes by more than 34%, increased revenues by 36% to US$120m and improved earnings before interest, tax, depreciation and amortisation (EBITDA) by 18% to US$36.7m. "This performance was supported by robust volume growth in Zimbabwe and a positive contribution from the Democratic Republic of Congo (DRC),” said Claasen.
Claassen added that the first phase of PPC's Cimerwa plant upgrade in Rwanda, which involved de-bottlenecking the plant to increase production capacity, was successfully completed in the six months to September 2018 and that PPC began to realise the benefits towards the end of the reporting period when record volumes were achieved.
However, the revenue achieved by the Cimerwa plant declined to US$29.1m from US$31.9m in the prior period because of a 7% reduction in volumes. PPC’s Rwandan EBITDA slumped to US$6.7m from US$12.2m, because of unexpected maintenance associated with clinker imports costs. Claassen added that its operations in the DRC continued to encounter challenging market conditions, which were characterised by overcapacity and muted cement demand due to political uncertainty.