http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.49Change: 0.10
R/$ = 10.49Change: 0.06
Au 1289.99 $/ozChange: -5.58
Pt 1406.50 $/ozChange: -22.00
 
 
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
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements 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|Habesha Cement Share Company|Industrial Development Corporation|Africa|Ethiopia|South Africa|USD|HCSCo Plant|Cement|Cement Plant|Development Finance Institution|Paul Stuiver
addis-ababa|habesha-cement-share-company|industrial-development-corporation|africa|ethiopia|south-africa|usd|hcsco-plant|cement|cement-plant-industry-term|development-finance-institution|paul-stuiver
© 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
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
 
Latest News
Few would argue with the notion that unemployment, which stands at around 25% on the narrow definition as reported by Statistics South Africa, remains one of the country’s most pressing challenges. Fewer still could contest the view that South Africa’s education...
Renewable-energy projects, such as this Northern Cape solar farm, seen as key to low‐carbon energy supply.
Upfront investment costs will and should remain a critical consideration as South Africa moves to upscale and accelerate its infrastructure programmes. But one of the lead authors of the latest Intergovernmental Panel on Climate Change (IPCC) argues that the...
The barrier to efficient water service delivery in South Africa was not of a technological nature but rather related to legal and Constitutional challenges, Water Research Commission (WRC) CEO Dhesigen Naidoo said on Thursday. Opening a WRC debate under the theme...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of 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 steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...
 
 
 
 
 
 
 
 
 
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