Pretoria Portland Cement Company Limited - PPC announces R1.36 billion

Pretoria Portland Cement Company Limited - PPC announces R1.36 billion          
Batsweledi cement capacity expansion project                                    
PRETORIA PORTLAND CEMENT COMPANY LIMITED                                        
Registration no. 1892/000667/06                                                 
JSE code: PPC                                                                   
ISIN: ZAE000005559                                                              
PPC announces R1.36 billion Batsweledi cement capacity expansion project        
Pretoria Portland Cement Company Ltd ("PPC") today announced the details of its 
Batsweledi cement capacity expansion project. The board of the company has      
approved the investment of R1.36bn to increase the company"s inland cement      
capacity in South Africa by just over one million tons per annum.  The          
additional capacity will supply both future demand growth in the South African  
cement market and the eventual replacement of capacity from older production    
facilities which will be retired when market conditions allow.                  
PPC is the 71.6% owned cement and lime subsidiary of diversified industrial     
company Barloworld Limited.                                                     
The announcement follows a year of detailed feasibility studies following an    
initial public statement in August 2004 which said "In the light of recent and  
future anticipated cement demand growth, and the planned future retirement of   
older PPC production lines, the PPC Board has resolved to commence with the     
planning for and broad approval in principle of, a 1 million ton per annum      
cement capacity expansion project for the inland region of South Africa."       
The final project plan announced today has two components. R1.23bn will be      
invested in the installation of a new kiln line and related infrastructure at   
PPC"s existing Dwaalboom cement factory, which is situated in Limpopo Province  
on the border with the North West Province. A further R130 million will be spent
recommissioning and upgrading the existing cement milling facility at the       
Jupiter factory in Johannesburg. All figures are quoted in escalated terms.     
The new capacity is expected to come on line in the second calendar quarter of  
2008 and the capital expenditure, which will be financed by a combination of    
operating cashflow and borrowings, will be spread over the three financial years
from 2006, with peak expenditure in 2007.                                       
Commenting on the announcement, John Gomersall, CEO of PPC said:                
"We recognized the growth potential of the South African market 4 years ago and 
developed a 20 year expansion and modernization plan. Demand has grown faster   
than anticipated supported by the strong economy with booming housing           
construction fuelled by lower real interest rates. Looking forward, we expect   
the private sector demand to be enhanced by increasing public sector            
infrastructure investment.                                                      
Even taking into account the higher levels of demand growth, we believe this new
capacity will allow us to meet the cement needs of our South African inland     
customer base. In the coastal areas, our major focus is in the Western Cape     
where we currently have sufficient capacity at our two factories to supply      
anticipated growth in demand until about the end of the decade. In the Eastern  
Cape, we successfully rose to the occasion to supply all the cement to the      
massive Ngqura Harbour which is now nearing completion.                         
This project follows our announcement in May this year to invest R50 million to 
re-commission the 550 000 ton-a-year Jupiter factory in Germiston, south of     
Johannesburg. Work on that project is well advanced and the factory will come   
back on stream during March/April 2006. It will provide the market with         
additional security of supply over the two and a half year construction and     
commissioning period of the Batsweledi project.                                 
We intend financing the project through a combination of operating cashflow and 
borrowings. Looking to the longer term, our balance sheet is very strong and    
will ensure that we are in a position to invest to meet the growing cement      
requirements of our customers well into the next decade."                       
An environmental impact assessment (EIA) has been completed for the new         
facilities at Dwaalboom and the necessary approvals to proceed with the project 
have been obtained from the authorities. By replacing old technology plant with 
state of the art technology, greenhouse gas emissions will be significantly     
reduced. There will also be a reduction in fossil fuel consumption per ton of   
cement produced. Work is expected to commence on site early in the first        
calendar quarter of 2006.                                                       
Batsweledi is a Sotho word meaning "growing into the future" and was the winning
suggestion from a competition among PPC"s employees to name the project.        
A briefing on the expansion will take place in the Auditorium at the Barloworld 
Corporate Offices today (Tuesday 30 August) commencing promptly at 11h30.       
Members of the investment community wishing to attend should contact Karena     
Stewart on telephone (011)772-1092 or email karenas@meropa.co.za.               
For additional information contact John Gomersall, CEO of PPC on +27 11 445     
1015. For background information on PPC visit www.ppc.co.za                     
Sandton                                                                         
30 August 2005                                                                  
Sponsor:                                                                        
J.P. Morgan Equities Limited                                                    
Date: 30/08/2005 07:05:45 AM Supplied by www.sharenet.co.za                     
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