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PPC
PPC
PPC - PPC takes action to play its role in meeting ASGISA targets
Pretoria Portland Cement Company Limited
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE code: PPC
ISIN: ZAE000005559
PPC takes action to play its role in meeting ASGISA targets
PPC Cement has concluded a contract with a large and reputable
international cement company with whom it has had a long relationship,
which will see PPC importing cement to complement its existing domestic
volumes until its new capacity comes on stream.
It is envisaged that the growth in the construction industry, which has
seen annual cement demand increase by almost 50% from 9.6 million tons in
2002, will continue until, at least 2014, when the Government"s Accelerated
and Shared Growth Initiative (ASGISA) is expected to achieve its target to
halve poverty and unemployment.
"We are committed to playing our role in supporting the goals of ASGISA and
will play a key role in doing our best to provide the effective and
efficient delivery of quality cement for construction and infrastructure
projects," said John Gomersall, chief executive officer of PPC.
"Our costing indicates that we will make no profit on this imported cement
and we see it as a contribution to ASGISA and meeting the needs of our
customers over the next year or two," continued Gomersall. "Our imports
might run to several million bags over this period. One realises therefore,
that this is a large and complex undertaking with long lead-times and
supply lines, and foreign exchange and shipping risks," he added.
The imported product has been manufactured according to PPC Cement"s
specifications and will carry the SABS mark and PPC will stand behind the
quality. The first shipments are due in the coming weeks.
In anticipation of the growth in cement demand, PPC Cement started working
on the feasibility of its capital expansion programme over five years ago.
As a result, PPC announced its Batsweledi (a Sotho word meaning "growing
into the future") cement capacity expansion project in 2005. The
Batsweledi project is an investment of R1.36-billion to increase PPC
Cement"s inland cement capacity by 1.25 million tons per annum.
Earlier this year, the pre-feasibility phase of PPC"s Western Cape
expansion project was approved, which should moreover assist the company in
meeting the anticipated future coastal cement demand.
"We are encouraged by the fact that we completed the detailed scoping of
our Batsweledi project within 18 months of Board approval and are confident
that we will be ready for commissioning in 2008," concluded Gomersall.
Issued by: Meropa Communications
Graeme Coetzee
Tel: (011) 772-1000
On behalf of: PPC Cement
Contact: Orrie Fenn
Chief Operating Officer
Tel:(011) 386-9000
28 September 2006
Sponsor: J.P.Morgan Equities Limited
Date: 28/09/2006 11:02:03 AM Produced by the JSE SENS Department
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