To view the PDF file, sign up for a MySharenet subscription.

PPC LIMITED - PPC Zimbabwe celebrates its centenary and announces expansion plans

Release Date: 07/02/2013 12:45
Code(s): PPC     PDF:  
Wrap Text
PPC Zimbabwe celebrates its centenary and announces expansion plans

PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE Code: PPC
ISIN: ZAE000170049
("PPC" or the “Company")

MEDIA RELEASE

7 February 2013

PPC Zimbabwe celebrates its centenary and announces expansion plans

Portland Holdings Limited (PHL), PPC’s Zimbabwe subsidiary, has announced its intention to
construct a new cement plant to service the Harare and central Mozambique markets. The new
plant will have a capacity of approximately one million tons of cement per annum and will coincide
with the construction of a separate grinding facility in the neighbouring territory of Tete in
Mozambique.

Ketso Gordhan, the CEO of PPC said in Harare today, “In recent years our investment in Zimbabwe
has shown strong growth on the back of a more buoyant and stable economy. This together with the
fact that PPC has received an indigenisation certificate makes us optimistic about the future of the
economy and the country as a whole.”

This announcement was made during the PHL’s centenary celebrations in Harare today. PHL was first
registered as a company on 6 February 1913 and, similar to its parent company in South Africa, has
for 100 years been an integral part of Zimbabwe’s infrastructure development. Its core cement
brand, Unicem, can be found in virtually every key structure in the region from the Harare
International Airport to the mighty walls of Kariba Dam.

“The construction of additional cement capacity will ensure that PPC continues to be a key player in
the development of infrastructure in Zimbabwe and neighbouring countries. It is totally in line with
our stated strategy of growing our non-South African revenue from the current 21% to at least 40%
by 2016”, adds Gordhan.

The preliminary study for a new plant in the Mashonaland province is at an advanced stage, and
significant investment has already been made in exploration drilling at various locations. PPC has
dedicated resources in Zimbabwe and this, together with support from PPC’s head office, will now
commence with a full scale feasibility study including the selection of an equipment supplier.

Zak Limbada, the MD of PHL, said “Not only will this investment address the expected future
increase in cement demand in Zimbabwe, but create employment opportunities, beneficiation of the
country’s mineral reserves, and a significant growth opportunity for our indigenisation partners.”

-Ends –

Issued by:             Ogilvy Public Relations
Contact:               Cheryl Reddy
                       Account Director
                        079 881 2417
                        Cheryl.reddy@ogilvypr.co.za


On behalf of:           PPC Cement
Contact:                Nomzamo Khanyile
                        Public Relations Manager
                        072-261-7588
                        Nomzamo.khanyile@ppc.co.za

Sponsor:
Merrill Lynch South Africa (Pty) Ltd

Notes to editors:
PPC Ltd is the majority shareholder of Portland Holdings Limited. It acquired PHL in 2001.
History of PHL (PPC Zimbabwe)
       Date                                              Activity

6 February         Portland Holdings Limited, now trading as “PPC Zimbabwe” was registered under
1913               the name “Premier Portland Cement Company”.

1914               The company went into production at Cement Siding near Bulawayo.

                   The first sale was to then Wankie Colliery Ltd, a relationship that has endured for
                   100 years. In this year the company produced 25 tons of cement a day.

1916               Exports to Northern Rhodesia (Zambia) and the Belgian Congo (Democratic
                   Republic of Congo) commenced.

1918               PPC Ltd first acquired an interest in Premier Portland Cement Company

1921               Premier Portland Cement Company was listed for the first time on the local Stock
                   Exchange

1928               PPC Ltd, through further investment, acquired control of Premier Portland
                   Cement Company

1930               Premier Portland Cement opened the Colleen Bawn Quarry.

                   The plant near Bulawayo was upgraded.

1946               A rival cement company, Rhodesia Cement (Ltd),

                   established a factory at Colleen Bawn.

1946               A second manufacturer, Rhodesia Cement Ltd (Rhocem) went into production.

1949               “Rhocem” began production with the capacity of 80 000 tonne/annum
1950          Premier Portland followed up with a new 80 000 ton/annum kiln at Cement Siding



1960’s        Political uncertainty saw demand plunge by almost 50%



1963          Premier Portland Cement and “Rhocem” were working at one third of their
              capacity


1965          Premier Portland and “Rhocem” merged their cement making assets into a joint
              company – United Portland Cement Co. (Pvt) Ltd (and the Brand “UNICEM” was
              born) with a 50/50 shareholding

1980          Rhodesia Cement Ltd changed its name to Portland Holdings Ltd (PHL)

1982          PPC Ltd exited Zimbabwe and sold its entire shareholding in Premier Portland
              Cement to PHL


1984          PHL established an Employee Shareholder Trust



1980’s and    PPC Ltd maintained its support through technical agreements
1990’s

1993 – 1998   The company took advantage of the liberalisation of the Zimbabwean economy
              and rebuilt both the Colleen Bawn and Bulawayo factories.

1999          Annual cement demand in Zimbabwe was around 1.2 million tons



2001          PPC Ltd acquired 100% of PHL, this was seen as an investment as well as a step in
              the development and growth of PPC’s geographic footprint. PPC Ltd listed on the
              Zimbabwe Stck exchange, and PHL delisted.

2008          The annual cement demand in Zimbabwe declined to around 100 000 tons.

2009          The Zimbabwe economy adopted the US dollar as its primary currency, since then
              cement demand has risen substantially reaching demand in 2012 similar to those
              achieved in 1999.
2010   The old rotary clinker cooler at Colleen Bawn was replaced by a state of the art
       hydraulic operated grate cooler. This $20 million dollar project resulted in
       improved energy efficiency, higher grade clinker and increased capacity by around
       20%.

2012   PPC receives indigenisation certificate

       PHL announces further expansion at the Bulawayo factory.

2013   PPC Zimbabwe announces the intention to commence a full scale feasibility study
       which will culminate in a new cement plant being built in the country.

Date: 07/02/2013 12:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story