Jul 14, 2011
PPC expects positive sales growth in H2, but conditions still toughBack
Construction|Pretoria|Africa|Cement|Concrete|Environment|Hercules|Road|Africa|South Africa|Building|Cement Industry|Electricity Costs|Energy|Energy-efficiency Investments|Product|Products|Kevin Odendaal|Richard Tomes|Operations
© 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)
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
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 road...
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.
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...