PPC sees sales increase in southern Africa
Published by Jonathan Rowland,
Editor
World Cement,
PPC’s business units in Zimbabwe, Rwanda and Botswana recorded an increase in cement sales of 9% for the nine-month period to December 2016, the company said in a trading update, after the commissioning of a new mill in Harare.
The new was completed on time and US$3 million below budget, the company said. Despite the successful commissioning of the mill, the company is facing problems securing key raw material imports because of “liquidity challenges” in Zimbabwe.
“Management is exploring various solutions to overcome these challenges,” PPC said.
In addition to completing the new mill under budget, the company also reduced its reliance on debt-funding for the project by US$20 million by using cash reserves. Original project debt was expected to be US$75 million.
In Rwanda, the company continued its steady ramp-up of cement sales, hitting 81 000 t in 4Q16 and 0.23 million t for the nine-month period to December. Cement sales in Botswana also rose by 12% in the quarter.
Despite higher sales volumes, the company reported prices “under some pressure” in all three countries, as well as its home market of South Africa, where the average selling price fell 4% in the nine-month period to December.
Read the article online at: https://www.worldcement.com/africa-middle-east/08022017/ppc-sees-sales-increase-in-southern-africa/
You might also like
World Cement Podcast
In the latest episode of the World Cement Podcast, Senior Editor David Bizley is joined by Dr Andrew Minson of the GCCA to discuss the ins and outs of the recently launched Low Carbon Ratings (LCR) system.
TITAN Group release first quarter results
Titan Group had a positive start to the year with sales up by 2.4% at €638.4m, thanks to firm pricing, sustained volumes in cement, and growth in volumes in other core products.
