http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.88Change: -0.08
R/$ = 12.70Change: -0.19
Au 1087.85 $/ozChange: -7.64
Pt 988.00 $/ozChange: 3.00
 
 
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 Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 25, 2012

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

Back
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
addis-ababa|construction|engineering|expertise|africa-company|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-industry-term|development-finance-institution|product|paul-stuiver|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)
 
 
 
 
 
 
 
 
 
Latest News
Updated 4 hours ago British multinational banking and financial services firm Barclays has partnered with the Bureau for Economic Research (BER) at Stellenbosch University to sponsor the monthly manufacturing economic indicator, the Purchasing Managers’ Index (PMI). The index, now known...
Updated 4 hours ago Norwegian shipping liner Wallenius Wilhelmsen Logistics (WWL) has reached a settlement agreement with the Competition Commission for contravening the Competition Act, agreeing to pay an administrative penalty of R95.7-million. This settlement followed the...
Updated 4 hours ago As African economies advance their “aggressive” expansion, boosting demand for financial services products such as pensions, life insurance products and retail investment funds and drawing more consumers into the formal financial sector, traditional assets under...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Construction 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.
Real Economy Insight: Electricity 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.
Real Economy Insight: Road and Rail 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
Meyerton-based steel tank manufacturer Structa Technology is currently rolling out a water infrastructure build programme that supports local municipalities, water utilities, schools, hospitals and clinics.
Alternative funding models could be expected to begin coming to the fore in South Africa’s renewable-energy sector as the market becomes more competitive and domestic development finance institutions (DFIs) begin scaling back their direct involvement in projects....
DIMITRI MARKOULIDES An innovation champion must involve employees in innovation projects and keep them updated to enable them to support and drive innovation and create the future of the business
An innovation champion course that trains executives to manage innovation in their organisations aims to help companies grow revenue streams and tap new markets, says business change management consultancy BMGI South Africa innovation practice lead Dimitri...
Future digital workplaces will require employees to continuously learn new “literacies”, including new media, information and technical skills, to help their company thrive and spur personal growth. Information technology (IT) research firm Gartner, thus, suggests...
Only 25% of large construction projects surveyed in KPMG’s Global Construction Project Owner’s Survey, released in June, were concluded on time and within budget over the last three years. “Every project owner wants predictability when it comes to large projects, and...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96