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Cape Town - Cement supplier PPC announced that it has signed a memorandum of understanding with the Democratic Republic of Congo’s (DRC's) Barnet Group, its local partner of choice.
PPC CEO Ketso Gordhan announced the cement company’s intentions to invest in a $230m factory in the DRC. The greenfield project includes the construction of a 1 million tonne per annum cement factory and associated quarry.
Reuters reported earlier that the factory in the DRC comes alongside similar projects in Zimbabwe, Ethiopia and Rwanda. The company has said it aims to make at least 40% of its sales outside South Africa by 2016.
The factory is located 20km from Kimpese in the western DRC, which will ensure easy access into the main markets.
Although there are already cement manufacturers in the region, the market is severely undersupplied. At present, the DRC has 16kg per capita annual cement consumption, the lowest in Africa, compared with the South African average of 240kg and the global average of 400kg.
PPC made significant progress with its Africa strategy last year with the acquisition of a 27% stake in the Habesha Cement Share Company in Ethiopia for $12m and 51% of Cimerwa of Rwanda for $70m.
It also received its Zimbabwean indigenisation certificate, which opened the way to expand its operations. This was followed by the announcement PPC made regarding its intention to invest in a new 1 million tonne per annum cement plant in Harare.
PPC has partnered with local entrepreneur Jean Saidi Bamanisa, chairperson of the Barnet Group.
PPC CEO Ketso Gordhan announced the cement company’s intentions to invest in a $230m factory in the DRC. The greenfield project includes the construction of a 1 million tonne per annum cement factory and associated quarry.
Reuters reported earlier that the factory in the DRC comes alongside similar projects in Zimbabwe, Ethiopia and Rwanda. The company has said it aims to make at least 40% of its sales outside South Africa by 2016.
The factory is located 20km from Kimpese in the western DRC, which will ensure easy access into the main markets.
Although there are already cement manufacturers in the region, the market is severely undersupplied. At present, the DRC has 16kg per capita annual cement consumption, the lowest in Africa, compared with the South African average of 240kg and the global average of 400kg.
PPC made significant progress with its Africa strategy last year with the acquisition of a 27% stake in the Habesha Cement Share Company in Ethiopia for $12m and 51% of Cimerwa of Rwanda for $70m.
It also received its Zimbabwean indigenisation certificate, which opened the way to expand its operations. This was followed by the announcement PPC made regarding its intention to invest in a new 1 million tonne per annum cement plant in Harare.
PPC has partnered with local entrepreneur Jean Saidi Bamanisa, chairperson of the Barnet Group.
