Johannesburg - PPC, South Africa’s largest cement maker, said slower economic growth and falling infrastructure spending has led to a “particularly tough” domestic market for the company.
“Low single-digit” volume declines across Africa’s second-biggest economy were partly offset by higher selling prices in the 10 months through July, the Johannesburg-based company said today in an e-mailed statement.
A new plant in Rwanda is expected to be commissioned early next year as PPC seeks growth opportunities in other markets, it said.
PPC is expanding in new African countries including Rwanda, Zimbabwe and Ethiopia as demand for cement used for building grows in sub-Saharan Africa.
It’s targeting 40 percent of sales outside its domestic market by 2017, compared with 26 percent in the six months through March.
South Africa’s economy is forecast to grow at the slowest pace this year since the 2009 recession after strikes in the platinum mining and metalworkers industries hurt output.
PPC shares have increased 5.3 percent this year, compared with an 11 percent gain for the FTSE/JSE Africa All Share Index.
The company’s main competitor in Africa is Dangote Cement Plc of Nigeria, controlled by the continent’s richest man, Aliko Dangote. - Bloomberg News