http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.21Change: -17.04
R/$ = 14.98Change: -14.84
Au 1281.42 $/ozChange: 3.30
Pt 1058.00 $/ozChange: 3.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 31, 2005

Cement boom leads to R1,36bn PPC expansion

Back
Construction|Africa|Business|Cement|CoAL|Components|Environment|Installation|PPC|PROJECT|Projects|Water|Africa|Energy|Equipment|Environmental|Infrastructure|Operations
Construction|Africa|Business|Cement|CoAL|Components|Environment|Installation|PPC|PROJECT|Projects|Water|Africa|Energy|Equipment|Environmental|Infrastructure|Operations
construction|africa-company|business|cement|coal|components|environment|installation|ppc|project|projects|water|africa|energy|equipment|environmental|infrastructure|operations
Cement producer PPC yesterday announced that it is to go ahead with a R1,36-billion capacity-expansion project, which, it hopes, will better position it to take advantage of the current construction boom in South Africa, and the accompanying surge in cement demand.

The expansion project, named 'Batsweledi', has two components: the recommissioning and upgrading of the existing cement-milling plant at the Jupiter facility in Johannesburg, (R130-million), followed by the installation of a new kiln line and associated infrastructure at PPC's Dwaalboom factory, in Limpopo, (R1,23-billion).

The 550 000 t/y Jupiter cement factory is also currently being recommissioned, and is scheduled for completion in March or April next year.

This is being done to provide additional supply during the construction of the Batswaledi project and PPC CEO John Gomersall said yesterday that the Jupiter operations would be mothballed once the new Dwaalboom capacity came onstream, although this decision could be revised if market demand continued to escalate beyond the capacity of local cement producers.

All other PPC mothballed kilns have also been recommissioned.

The new capacity is expected to come online in the second calendar quarter of 2008, with construction set to begin at Dwaalboom early next year.

PPC COO Orrie Fenn said that the capital expansion project is expected to add about a million tons a year to South Africa's inland cement-production capacity.

He explained that the decision to build a new kiln line, rather than opting to upgrade the existing facilities, was taken for two reasons.

Firstly, an upgrade, although less costly, would be quite complex and involve between two and three months of downtime at Dwaalboom.

Also, the construction of a new line provides the opportunity to install state-of-the art equipment, particularly in light of the fact that this is the first new kiln to be built in the country in 15 years.

An environmental-impact assessment has been completed for the new facilities at Dwaalboom and the necessary approvals to proceed with the project have been obtained from the authorities, Fenn said.

The new kiln line will include lower-energy vertical roller raw and coal mills and will have the ability to burn low-grade coal and secondary fuels, as well as the high-grade coal currently being processed.

It will also meet best-practice environmental standards with low dust emissions and water consumption.

The cement-milling facility at Jupiter, once the upgrade and recommissioning is complete, will have a capacity of 800 000 t/y.

Cement produced through the expansion at Dwaalboom will be transported to Jupiter for milling, as well as to the Hercules plant, which also has spare capacity.

Fenn said that this would prove more cost-efficient than the construction of a new milling facility at Dwaalboom.

Strong demand outlook forecast

Gomersall said that the company expected a strong period of economic growth in South Africa to persist for the next five years, fuelled by low interest rates and an attractive inflation environment.

“The country fundamentals are positive,” he said, citing high business-confidence levels, increased spending on fixed-investment and infrastructural projects, anticipated benefits from the 2010 soccer World Cup and the residential market upsurge as some key indicators.

Further, presenting an overview yesterday of the local cement industry, Fenn said that PPC expected yearly demand - excluding exports - to continue to rise for at least the next five years, and to exceed 16-million tons a year by 2010.

The only other extra capacity announced as yet is NPC's Simuma kiln, which will add 600 000 t/y.

In response to a question from an investment analyst, Gomersall said that, should no other producer announce plans to raise capacity before 2010, PPC would probably look at further expansion projects.

Edited by: Liezel Hill

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Brenda Berlin
Platinum mining company Impala Platinum (Implats) has secured a court order against a US platinum recycler, from which it is claiming $201-million. Implats said on Wednesday that the order, issued by the US District Court for the Eastern District of Pennsylvania,...
Andrew Hinkly
A potentially far-reaching step has been taken towards the viable roll-out of hydrogen refuelling infrastructure for platinum-using fuel cell electric vehicles (FCEVs) with the launch of a system that allows hydrogen to be stored and transported in conventional fuel...
Johannesburg mayor Parks Tau
At least R14-billion in investments had seen the economic development of the City of Johannesburg, resulting in economic hubs that created jobs and further opportunities for the city’s citizens, mayor Parks Tau said on Wednesday. The city had begun redesigning the...
More
 
 
Recent Research Reports
Energy Roundup – May 2016 (PDF Report)
The May 2016 roundup covers activities across South Africa for April 2016 and includes details of the National Energy Regulator of South Africa’s proposal to introduce a coal benchmark cost as part of its final decision on Eskom’s multiyear price determination...
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149