Regional cement and lime producer Pretoria Portland Cement says an increase in cement sales in Zimbabwe has boosted the group’s overall sales volume at a time when major markets like South Africa have remained subdued.
In a trading update for the quarter October to December, 2014 released today, Bheki Sibiya, chairman of the Johannesburg Stock Exchange-listed group said Zimbabwe and Botswana were the main drivers of volumes during the quarter.
“Domestic sales volume growth in Zimbabwe and Botswana has shown an upward trend. However, in all territories muted selling price growth has been achieved,” he said.
Sibiya added that construction work in Harare was in progress although no further details were provided.
PPC is constructing an $80 million cement plant in Harare which is expected to come on line next year.
The company has cement manufacturing plants at Cementside in Bulawayo and Colleen Bawn in Matabeleland South.
The Harare project among others in Africa is expected to boost the demand of cement products.
“The release of major infrastructural projects in South Africa, Botswana and Zimbabwe would provide a key driver for demand of cement products.”
PPC also has subsidiaries in Rwanda, Ethiopia and the Democratic Republic of Congo.
The increase in sales in Zimbabwe, however, was a sharp contrast to the group’s performance in its main market, South Africa.
“The operating environment in South Africa remains tough on the back of weak economic growth, which has been exacerbated by power shortages, and increased competitor activity.”
The group will release its interim results for the six month period ended March 31, 2015 on 19 May.-The Source
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