PPC - PPC takes action to play its role in meeting ASGISA targets

PPC - PPC takes action to play its role in meeting ASGISA targets               
Pretoria Portland Cement Company Limited                                        
(Incorporated in the Republic of South Africa)                                  
(Company registration number 1892/000667/06)                                    
JSE code: PPC                                                                   
ISIN: ZAE000005559                                                              
PPC takes action to play its role in meeting ASGISA targets                     
PPC Cement has concluded a contract with a large and reputable                  
international cement company with whom it has had a long relationship,          
which will see PPC importing cement to complement its existing domestic         
volumes until its new capacity comes on stream.                                 
It is envisaged that the growth in the construction industry, which has         
seen annual cement demand increase by almost 50% from 9.6 million tons in       
2002, will continue until, at least 2014, when the Government"s Accelerated     
and Shared Growth Initiative (ASGISA) is expected to achieve its target to      
halve poverty and unemployment.                                                 
"We are committed to playing our role in supporting the goals of ASGISA and     
will play a key role in doing our best to provide the effective and             
efficient delivery of quality cement for construction and infrastructure        
projects," said John Gomersall, chief executive officer of PPC.                 
"Our costing indicates that we will make no profit on this imported cement      
and we see it as a contribution to ASGISA and meeting the needs of our          
customers over the next year or two," continued Gomersall. "Our imports         
might run to several million bags over this period. One realises therefore,     
that this is a large and complex undertaking with long lead-times and           
supply lines, and foreign exchange and shipping risks," he added.               
The imported product has been manufactured according to PPC Cement"s            
specifications and will carry the SABS mark and PPC will stand behind the       
quality. The first shipments are due in the coming weeks.                       
In anticipation of the growth in cement demand, PPC Cement started working      
on the feasibility of its capital expansion programme over five years ago.      
As a result, PPC announced its Batsweledi (a Sotho word meaning "growing        
into the future") cement capacity expansion project in 2005.  The               
Batsweledi project is an investment of R1.36-billion to increase PPC            
Cement"s inland cement capacity by 1.25 million tons per annum.                 
Earlier this year, the pre-feasibility phase of PPC"s Western Cape              
expansion project was approved, which should moreover assist the company in     
meeting the anticipated future coastal cement demand.                           
"We are encouraged by the fact that we completed the detailed scoping of        
our Batsweledi project within 18 months of Board approval and are confident     
that we will be ready for commissioning in 2008," concluded Gomersall.          
Issued by: Meropa Communications                                                
           Graeme Coetzee                                                       
Tel:  (011) 772-1000                                                 

On behalf of: PPC Cement                                                        
Contact:  Orrie Fenn                                                            
          Chief Operating Officer                                               
Tel:(011) 386-9000                                                    
28 September 2006                                                               
Sponsor: J.P.Morgan Equities Limited                                            
Date: 28/09/2006 11:02:03 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department