R/€ = 15.26Change: -0.01
R/$ = 14.41Change: -0.03
Au 1057.95 $/ozChange: 0.07
Pt 835.50 $/ozChange: 0.00
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 25, 2012

PPC, IDC buy $21m stake in Ethiopian cement company

Addis Ababa|Construction|Engineering|Expertise|Africa|Building|Cement|Habesha Cement Share Company|Industrial|Industrial Development Corporation|Training|Africa|Democratic Republic Of Congo|Ethiopia|Kenya|South Africa|Tanzania|Zambia|USD|HCSCo Plant|Cement Plant|Development Finance Institution|Product|Paul Stuiver|Operations
Construction|Engineering|Expertise|Africa|Building|Cement|Industrial|Training|Africa|Democratic Republic Of Congo|Kenya|Tanzania|Zambia|||||Operations
© Reuse this

JSE-listed Pretoria Portland Cement’s (PPC’s) African expansion strategy is gaining momentum, with the company and the Industrial Development Corporation (IDC) on Wednesday announcing the joint acquisition of a 47% stake in an Ethiopian cement firm.

PPC, which is aiming to earn as much as half of its revenue from outside South Africa in the next few years, would spend $12-million cash to secure 27% of Habesha Cement Share Company (HCSCo).

The IDC, South Africa’s State-owned development finance institution, would simultaneously invest $9-million for a 20% stake in HCSCo, which is building a 1.4-million-ton cement plant at a cost of $130-million near Addis Ababa.

“We are on record that our strategy is to grow our revenue earned outside South Africa to between 40% and 50% during the next few years and that we have been working on various opportunities on the African continent. This is one of those opportunities,” commented CEO Paul Stuiver.

PPC currently generates about 20% of its revenue outside South Africa, and the Ethiopian investment – its first foray into the East African cement market – is estimated to take that to 25%.

Speaking to Engineering News Online, PPC corporate strategy and communications executive Kevin Odendaal noted that Ethiopia’s gross domestic product growth was forecast at about 8%, which boded well for cement demand.

He said PPC would continue to focus on its strategy of growing its presence in other African countries, “going up the spine of the continent”.

“We are looking at Zambia, the Democratic Republic of Congo, Kenya, Tanzania, as well as Uganda and Rwanda.”

Construction companies are increasingly looking at opportunities in the rest of Africa, as growth slowed in South Africa.

Citing industry statistics, which showed that the first quarter was up just over 6%, Odendaal said that there was still positive momentum in South Africa. “We saw this carried through to the end of June and would have to see how the market does going forward.”

Meanwhile, PPC reported that the HCSCo plant was in the early stages of construction with first cement production planned for the first half of 2014. The plant’s future development plan includes an option to double the capacity to 2.8-million tons a year.

During the initial construction phases, PPC would assist HCSCo by providing operational and technical expertise and with the training of plant personnel at its operations and in the PPC Academy in South Africa.

In addition to the equity investments by local shareholders, PPC and the IDC, HCSCo has secured $86-million debt financing from the Development Bank of Ethiopia.

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
Other Construction Materials News
PROPELLING CONCRETE Courses presented by The Concrete Institute aim to build a greater understanding of concrete in the construction industry
The need for skills upliftment in the construction industry has never been more vital as South Africa prepares for the long-awaited roll-out of tenders for government’s strategic integrated projects (Sips) in 2016, states The Concrete Institute MD Bryan Perrie.
Students from the Southern African Institute of Steel Construction (SAISC) School of Draughting at Genrec Engineering, in Wadeville, Germiston, have excelled in the recently held on October 2nd  University of Johannesburg Department of Civil Engineering Technology’s...
OVERALL WINNER The Square Kilometre Array Africa Radio Antenna Positioner was the overall winner of Steel Awards 2015, as well as the event's Tubular category
Southern African Institute of Steel Construction (SAISC) Awards convenor Spencer Erling says the quality of the entries for this year’s Steel Awards easily matched the outstanding quality of previous years. “We are going through very tough times in the steel...
Latest News
French conglomerate Bollore may have to halt work on the Niger to Benin section of its giant West Africa rail project after a rival company won a court order to stop it going ahead. The dispute concerns rival rail schemes in the area.
A week ahead of the second annual gathering of the Forum on China–Africa Cooperation (Focac), in Johannesburg, the JSE is rolling out the proverbial red carpet for Chinese investors looking to Africa’s largest bourse for possible investment opportunities, calling...
The South African National Roads Agency Limited (Sanral) applied for leave to appeal on Friday against the Western Cape High Court judgment that set aside the approvals that would enable it to toll sections of the N1 and N2 freeways in Cape Town. This prompted the...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
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,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
NICK CHRISTODOULOU As about 58% of data stored by organisations is dark, they must identify this dark data to expose risks and valuable information
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
BRIAN VERWEY Effective management, review and administration of non-core elements can improve business operations and increase revenue and decrease unforeseen risks
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...
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