Jul 14, 2011
PPC expects positive sales growth in H2, but conditions still toughBack
© Reuse this
But executive for corporate strategy and communications Kevin Odendaal said the difficult business environment in South Africa’s construction and building sectors continued to place strain on the cement industry and on the sales outlook.
Sales volumes fell by 4% year-on-year from October 2010 to March 2011, which was the smallest rate of decline for a six-month reporting period since September 2008. More recent trends were also positive, with the Cement and Concrete Institute reporting that monthly cementitious product sales for June increased by 10.2% over sales recorded in June last year.
“It is too early to say if this is the bottom of the cycle, but there are definitely signs of recovery and this is in line with our view that the cement industry will experience positive growth in the second half of the year,” he explained.
The dynamics of the market, particularly with higher production capacity versus demand, have resulted in increased levels of competitiveness in the market.
PPC has responded by beefing up its operations and products and said that it was also beginning to reap the benefits from energy-efficiency investments at its Hercules operation, in Pretoria. The investment has so far helped to shave almost 5% off its electricity costs.
Overall the group has invested some R700-million at the plant, where it had also expanded its cement milling capacity. The new clinker grinding facility would also increase output.
The company has also installed an energy efficient vertical roller mill, a clinker silo and a duo-cell cement silo with bulk road loading facilities. The vertical roller mill, together with the remaining milling capacity is estimated to produce an electrical energy saving for each ton of cement produced of around 15%.
The company has also made significant changes to its existing product range, which PPC executive for cement sales and marketing Richard Tomes said reduced concrete costs while allowing builders and contractors to produce 15% more concrete.
PPC’s OPC (Original Portland Cement) product would change to a 52.5 N (Newton) classification (previously 42.5 N) and PPC’s Surebuild has been upgraded from 32.5 R cement to a 42.5 N cement.
Edited by: Terence Creamer© Reuse this Comment Guidelines (150 word limit)
Creamer Media Editor
Other Construction News
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
While strongly welcoming the promulgation of the new Part 101 of South Africa’s civil aviation regulations, governing the commercial operation of civil remotely piloted aircraft (RPAs) in South Africa, the Commercial Unmanned Aircraft Association of Southern Africa...
LSM Distributors has contracted engineering consultancy WSP | Parsons Brinckerhoff Africa to undertake the R100-million restoration of the 54-year-old Kyalami racetrack, situated in Midrand. The restoration will assist in re-establishing it as a venue for...
South African Defence Minister Nosiviwe Mapisa-Nqakula has expressed the hope that the defence budget will be significantly increased over the next five years. She did so while addressing the media in her recent budget vote media briefing. The 2015/2016 defence...
The African Development Bank (AfDB) has been an implementing agency for the Global Environment Facility (GEF) since 2008. The relatively young portfolio has 28 projects over 30 countries on the continent according to the 2014 AfDB and GEF annual report released...
Investment in South African youth through apprenticeships and learnerships will not only create direct benefits for businesses but will also contribute significantly to job creation and socioeconomic transformation in the country.