PPC - PPC announces R604 million capital expansion
PPC
PPC
PPC - PPC announces R604 million capital expansion project
Pretoria Portland Cement Company Limited
Registration no. 1892/000667/06
JSE code: PPC
ISIN: ZAE000005559
PPC announces R604 million capital expansion project
Pretoria Portland Cement Company Ltd (`PPC`) today announced details of its
latest cement upgrade and expansion project. The board of the company has
approved the investment of R604 million to increase the company`s inland cement
milling capacity. The project approval follows a period of detailed design and
feasibility study and is in line with the company`s commitment to playing its
part in meeting the country`s growing cement demand whilst also modernizing
ageing equipment.
A new one million ton per annum vertical roller mill, together with associated
material handling and storage infrastructure, is to be constructed at PPC`s
Hercules plant in Pretoria, and is expected to come on line mid 2009.
One third of the new mill capacity will allow for the replacement of two older,
less efficient mills. A reduction of up to 45% in milling energy consumption per
cement ton compared to these two old Hercules mills, is projected.
A further one third of the new capacity will be utilized to mill output from the
Jupiter kiln which is now forecast to continue operating for some time post the
Dwaalboom Batsweledi kiln project commissioning in the second quarter of 2008.
Additionally, by utilizing this state of the art technology, current inland
cement capacity will be increased by a further 300 000 tons per annum through
the manufacture of increased volumes of extended cements from existing clinker
capacity.
The necessary approvals to proceed with the project have been obtained from the
authorities. The R604 million project will be financed by a combination of
operating cash flow and borrowings and will be spread over the three financial
years of 2007, 2008 and 2009.
For additional information, contact John Gomersall, CEO of PPC on +27 11 445
1015.
For background information on PPC visit www.ppc.co.za
Sandton
27 February 2007
Sponsor: J.P.Morgan Equities Limited
Date: 27/02/2007 07:00:04 Produced by the JSE SENS Department.
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