Pretoria Portland Cement (PPC), South Africa, has experienced a substantial reduction in cement volumes across most of southern Africa due to a recent slowdown in the construction industry.
While cement demand in Zimbabwe has actually increased, volumes in South Africa and Botswana have dropped 13% as a result of a lack of recovery in the residential market in these regions.
The end-of-year report issued at the end of September stated that, “while growth in Zimbabwean cement demand for 2010 exceeded 100%, sales volumes in the second half of the year were down compared with the first half.”
PPC revealed that over the interim period ending March 2010, overall cement volumes dropped 8%, yet cement sales in Zimbabwe increased more than threefold.
The report also remarked on the company’s positive results in the lime industry, “The lime division posted a 75% increase in operating profit to R159 million this year. Lime sales volumes improved 23% compared to last year, due mainly to a recovery in the local steel and alloys industry and increased exports.”