R/€ = 15.23Change: 0.20
R/$ = 13.52Change: 0.24
Au 1148.19 $/ozChange: 13.43
Pt 939.00 $/ozChange: 28.50
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

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  
Jul 14, 2011

PPC expects positive sales growth in H2, but conditions still tough

PPC executive for corporate strategy and communications Kevin Odendaal (pictured) and executive for cement sales and marketing Richard Tomes discuss strengthening the company's position in the current challenging market conditions. Camera Work and Editing: Darlene Creamer.
© Reuse this

South Africa’s cement industry was beginning to show some signs of a possible recovery, with recent industry sales figures showing that the rate of contraction was slowing, JSE-listed Pretoria Portland Cement (PPC) said on Thursday, adding that it was still forecasting a growth in sales for the second half of 2011.

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
Creamer Media Editor
© Reuse this Comment Guidelines (150 word limit)
Other Construction Materials News
Major equipment at Sephaku Holdings’ Aganang integrated plant is performing above guaranteed levels, with performance tests at the plant having been successfully concluded in July. The company on Wednesday also reported that its Sephaku Cement (SepCem) operations had...
Lack of major national projects and large commercial infrastructure projects saw Lafarge Cement Zimbabwe Limited report reduced revenues for the half year ended 30 June 2015. Lafarge, whose biggest competitor is JSE listed Pretoria Portland Cement, reported a 9.71%...
The Bargaining Council for the Civil Engineering Industry (BCCEI) has been accredited by the Commission for Conciliation, Mediation and Arbitration (CCMA) to handle all civil engineering sector disputes. This would mean that companies that were not members of the...
Latest News
Updated 55 minutes ago The Worldwide Fund for Nature (WWF) has called on governments to introduce legislation that puts a stop to the construction of new coal plants, stating that coal consumption needed to be phased out completely by 2050, or earlier. The international nongovernmental...
Updated 1 hour 13 minutes ago The International Monetary Fund (IMF) has again lowered its growth outlook for South Africa for 2015, projecting in its October World Economic Outlook (WEO) that the economy would expand by only 1.4% this year and 1.3% in 2016. The forecasts represent a 0.6 and a 0.8...
Minister Thulas Nxesi
Updated 1 hour 20 minutes ago There are still many opportunities for South Africa’s black high school learners to find jobs in future, both in the public and private sectors, provided that the learners apply discipline and commitment to study, Public Works Minister Thulas Nxesi said on Tuesday....
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
Sphere Holdings CEO Itumeleng Kgaboesele
Updated 7 hours ago Black-owned investment holding company Sphere Holdings plans to raise a further R1-billion in the coming months in support of its strategy to become a leading black industrial enterprise, which could ultimately seek a listing on the JSE.
Energy analyst and EE Publishers MD Chris Yelland warned recently against excessive optimism regarding timescales for the proposed construction of new nuclear power plants (NPPs) in South Africa. He was speaking at a Nuclear Roundtable in Johannesburg. “I think we...
Malawi’s Lilongwe Water Board (LWB) is inviting eligible bidders to prequalify for the board’s efficiency improvement works, which will be implemented as part of the E24-million Lilongwe Water Resources Efficiency Programme.   LWB CEO Alfonso Chikuni explains that...
CROATIA, AN EU MEMBER BUT NOT A TDCA MEMBER On July 1, 2013, Croatia officially became the twenty-eighth member of the European Union (EU). Despite Croatia’s accession into the EU, it is yet to become party to the Trade, Development and Cooperation Agreement (TDCA)...
The Council for Scientific and Industrial Research (CSIR) has announced that its new Inundu airborne electronics testing, evaluation and training pod had made its first test flight on September 10. The successful flight was undertaken from Lanseria International...
Alert Close
Embed Code Close
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
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96