http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.03Change: -0.04
R/$ = 10.70Change: -0.04
Au 1281.92 $/ozChange: -5.26
Pt 1422.50 $/ozChange: -1.50
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
May 07, 2008

Double-digit cement price hike on the cards

Back
PPC CEO John Gomersall discusses cement inflation in South Africa (07-05-2008)
Engineering|Africa|Cement|Diesel|PPC|Africa|Cement Prices|Cement Producer|Energy|Energy Costs|John Gomersall|Diesel
Engineering|Africa|Cement|Diesel||Africa|Energy|||
engineering|africa-company|cement-company|diesel-company|ppc|africa|cement-prices|cement-producer|energy|energy-costs|john-gomersall|diesel
© Reuse this



Cement producer PPC, which diversified conglomerate Barloworld unbundled last year, in July could increase its prices by “several percentage points” more than March’s producer price inflation figure of 11,8%, CEO John Gomersall said on Wednesday.

This was after surging energy costs and commodity prices pushed up Africa’s biggest cement producer’s costs.

“We are assessing the options at the moment,” he stated.

Gomersall told Engineering News Online that PPC had seen a 28% rise in its diesel costs so far this year, and that the company used between 120-million litres and 130-million litres of the fuel yearly.

If the diesel price was to rise by a further 78c/l as some commentators had predicted, this would add R84-million a year to PPC’s costs.

“Around the world, cement prices are rising,” he said.

The company had already lifted its prices by an average of 8,5% in January, which Gomersall conceded “as it turns out, was not nearly enough”.

PPC reviews its prices twice a year, with changes becoming effective on January 1 and July 1.

BEE DEAL

Meanwhile, Gomersall said that PPC was in the final throes of concluding its long-awaited black economic-empowerment deal, and had already chosen its partners.

The company had been finalising the transaction at the same time that it was undergoing a financial restructuring, which was making it complicated.

Meanwhile, he went on to say that the usual major local empowerment groups would not form part of the deal.

“I would say that you probably would accept that you don’t see the usual suspects in our deal,” Gomersall stated. “That’s another reason why it’s been so broad based and problematic.”

“To do a deal with a single ‘usual suspect’ you can do very quickly,” he concluded.

In a slide presentation, PPC said that it would sell an initial 15% stake.

South African law introduced to redress apartheid requires companies to sell a portion of their shares to the local black population, with the view to involving more people of this skin colour in the formal economy.

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Construction Materials News
Wilson Bayly Holmes-Ovcon (WBHO) had delivered “a reasonable performance” for the financial year ended June 30, said CEO Louwtjie Nel on Monday. “We are getting through this tough period. It hasn’t really improved much over the past two, three years, even...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
Murray & Roberts (M&R) has closed the book on its three-year recovery and growth phase and has now turned its focus to a longer-term “new strategic future” of “engineering excellence”. The past three years have seen the international engineering-led...
Article contains comments
More
 
 
Latest News
Government, in conjunction with industry clusters had to encourage preferential procurement in the mining industry, Department of Trade and Industry (DTI) capital equipment and allied services director Tapiwa Samanga has said. In a statement issued on Monday, he...
Neil Gopal
The South African Property Owners’ Association (Sapoa) has appealed to Rural Development and Land Affairs Minister Gugile Nkwinti to invoke the discretionary powers available to him under the Spatial Planning and Land Use Management Act of 2013 to prevent...
The Financial Services Board (FSB) has extended telecommunications group MTN’s broad-based black economic-empowerment trading platform MTN Zakhele’s exemption to the directive requiring over-the-counter (OTC) trading platforms to apply for a licence to operate,...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...
 
 
 
 
 
 
 
 
 
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