PPC African expansion strategy has ‘gained solid momentum’
JSE-listed cement producer PPC have reported headline earnings a share (Heps) of 179c for the financial year ended September 30, say its African expansion strategy had gained “solid momentum” during the year, with construction on cement plants under way in four countries, Engineering News reports.
The company had spent R2.12-billion on capital investment in the year under review, with more than R1-billion of this spent on the new projects in Rwanda, Zimbabwe and the Democratic Republic of the Congo (DRC).
PPC was building a $280-million, one-million-ton-a-year integrated cement plant in the western DRC, in partnership with Barnet Group.
Further, the 600 000 t/y plant in Rwanda remained on schedule for commissioning in the first half of 2015, while construction was under way on an $85-million 700 000 t/y cement mill in Harare, Zimbabwe.
In addition, construction had started on a $140-million, 1.4-million-ton-a-year cement facility near Addis Ababa, Ethiopia, which would be commissioned in 2016. PPC already owned a 27% interest in the project and had entered into an agreement with the Industrial Development Corporation to buy its 24% interest in the facility. The deal was expected to close in December.
PPC had also continued its investigation into potentially acquiring a 49% stake in an Algerian company that planned to build a two-million-ton-a-year cement plant in that country. A feasibility study for the project was at an advanced stage and PPC expected to make a final investment decision during the first half of 2015.
Meanwhile, in the financial year under review, PPC had lifted its cement sales by 2% year-on-year, while its revenue increased 9% year-on-year to R9.04-billion.
Read here for the full article: