PPC to Build 1 Million-Ton Cement Plant in Democratic Republic of Congo

---

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Leading South African cement and lime producer PPC (JSE:PPC) (Sandton, South Africa) will build a $230 million cement factory and associated quarry in the Democratic Republic of Congo (DRC). The factory will have a capacity of 1 million tons per year. The company has signed a memorandum of understanding (MOU) with its local DRC development partner, the Barnet Group.

The plant will take 24 months to complete and be 20 kilometers from Kimpese in western DRC, which will provide prime access to the country's main markets.

While there are existing cement manufacturers in the region, the market remains severely undersupplied. The DRC has the lowest annual cement consumption in Africa at 16 kilograms (kg) per capita. South Africa's per-capita consumption figure is 240 kg, and the global average is 400 kg.

PPC has confirmed that it is finalizing an agreement with Chinese engineering, procurement and construction (EPC) company Sinoma International Engineering (SHA:600970SS) (Beijing, China) to construct cement plants in Africa.

"This investment is indicative of our commitment to Sub-Saharan Africa, and we are very confident about the DRC," said Ketso Gordhan, the chief executive officer of PPC. "Some 22% of PPC's revenue comes from outside South Africa at present, but the target is to increase this to 40% by our 2016 financial year."

In 2012, PPC acquired a 27% stake in Habesha Cement Share Company in Ethiopia for $12 million and a 51% stake in the cement company Cimerwa in Rwanda for $70 million. Both these plants are scheduled to begin production in October 2015.

A 1 million-ton-per-year cement factory in Zimbabwe has been planned, and construction could begin this year if the feasibility study provides positive results. PPC has been granted a Zimbabwean indigenization certificate, which allows it to expand operations in that country.

View Project Report - 300120839 300093824 200000971

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.