Business

PPC cements deal to build new R3 billion plant

PPC plans to build a R3 billion cement plant to serve South Africa’s Cape provinces as the nation’s top maker of building materials looks to modernize its assets. 

The firm has signed a memorandum with Sinoma Overseas Development Company to build the facility at one of its existing sites, it said in a statement Thursday.

The plant will have capacity for 1.5 million tons of cement annually and will supply customers in the Eastern, Northern and Western Cape provinces, it said. 

PPC will finalize the scope of the project that will replace and increase existing capacity over the next three months. If the board approves the plans, construction will start in the second quarter and the facility will start operating at the end of 2026. 

Cement companies are among the biggest emitters of carbon dioxide. The new plant will “play a key role in achieving PPC’s commitment to reduce its carbon emissions,” the firm said. 

The project also aligns with President Cyril Ramaphosa’s pledge to turn the country into a construction site to boost economic growth, which has averaged less than 1% for the past decade due to logistical challenges, crime, corruption and mismanagement.

The pact between Beijing-based Sinoma and PPC will see them “partner with each other to identify new projects and opportunities to improve efficiencies of PPC’s operations,” PPC said.

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