PPC says South African market is ‘tough’

PPC, South Africa’s largest cement producer, has reportedly said that slower economic growth and a decline in infrastructure spending have made for a tough domestic market. Cement sales volumes declined over the ten months to July, though this was partially offset by higher selling prices.

As part of its strategy going forward, PPC has made plain that it is seeking to expand its revenue from international operations, including interests in Rwanda, Zimbabwe, Ethiopia and Algeria. The company is aiming to achieve 14 million t capacity by the end of 2017, while also targeting 40% of its sales outside of South Africa by 2017.

Mining strikes and bad weather were blamed for falling sales when PPC announced its results for the six months to March earlier this year. More recently, the South African cement industry has put in a complaint with the International Trade Administration Commission of South Africa regarding cement dumping from Pakistan, which the complainants allege is ‘causing material injury’ to the domestic industry.

Sources

• Bloomberg BusinessWeek
• MoneyWeb

Read the article online at: https://www.worldcement.com/africa-middle-east/15092014/ppc-says-south-african-market-is-tough-481/