PPC Limited to expand business in Zimbabwe
PPC Limited is set to expand its business in Zimbabwe by 2020 by spending US $200m for the construction of milling facilities in Harare and Clinker assets in Bulawayo and Gwanda. This will help in the increase of the capacity of cement in the country by 1.2million tonnes annually.
This comes at a time when the cement market in Zimbabwe is developing from cash in hand sales for home building towards renewed maintenance spending on national infrastructure.
The Harare milling plant will be constructed at a cost of US $86m and is expected to be complete and in operation in the middle of 2016.
The spending in Zimbabwe is part of PPC’s objective of having at least 40% in revenue come from outside South Africa by 2017.
The company has ring fenced its debts for the African investments which include the new mill in Zimbabwe, a plant in Rwanda, a cement factory under construction in Democratic Republic of Congo and a cement plant in Ethiopia worth US $135m and is 51% owned by the company.
Currently the cement industry’s competition has risen in the region with the entry of Nigerian Sephaku Cement and Chinese Mamba cement.