27
CONSTRUCTION WORLD
JUNE
2014
of growth
COVER STORY
AfriSam is South Africa’s largest producer of aggregate and the second largest producer of cement and
readymix concretes. It is also the only fully vertically-integrated supplier of cement, aggregates and
readymix concrete in South Africa’s business-hub province of Gauteng.
ATIONS
the company’s physical presence through
growth opportunities outside of our current
footprint ,” says Lawrence. “We have had our
sights set on expanding beyond our current
geographical footprint for quite some time
and, to-date, much preparation has gone into
identifying suitable growth opportunities for
AfriSam. We feel that the timing is now appro-
priate for us to execute these plans.
“As part of our Africa Growth Plan, our
main target is identified countries of interest.
Our growth strategy involves a combination
of both acquisitions and greenfield projects,”
says Lawrence.
AfriSam is South Africa’s largest producer
of aggregate and the second largest producer
of cement and readymix concrete. It is also
the only fully vertically-integrated supplier of
cement, aggregates and readymix concrete
in South Africa’s business-hub province of
Gauteng and has been mining and producing
construction materials since 1934. AfriSam
has a strong presence in Tanzania through its
62,5% ownership of Tanga Cement Company
Limited (TCCL), which plays an important role
in the company’s Africa growth strategy.
Tanga Cement Company Limited, which
serves the East African market, is currently in
the process of constructing a second kiln to
increase its current capacity.
The construction of the kilnwas approved
in May 2012 in response to the consist-
ently high demand for cement both from
the Tanzanian market and markets beyond
the country’s borders. Until now, TCCL has
been obliged to import clinker to meet
this demand and the new kiln will enable
the company to produce enough clinker to
supply all its own requirements and signifi-
cantly reduce imports.
With completion expected in 2015,
the second kiln will increase the com-
pany’s clinker production capacity by
600 000 tpa, more than doubling current
capacity. The installation comprises a new
state-of-the-art five-stage precalciner kiln,
which will utilise the lowest thermal energy in
the AfriSam Group and play a role in reducing
its average thermal energy consumption.
“The East African market is experiencing
rapid economic development as a result
of infrastructure improvements and hous-
ing needs, and this will give us the signif-
icant competitive advantage of being the
first to add clinker capacity to this market,”
says Lawrence.
He concludes: “We believe that the
construction of the second kiln will benefit
TCCL and AfriSam, but will also contribute
greatly to the economic development of
Tanzania and the East African region”.
In October 2012, AfriSam
signed a lease agreement
with the Coega Development
Corporation (CDC) for the
development of a cement
milling and grinding plant
in the Coega IDZ. Signing
the impressive greenfield
investment lease agreement
are the company’s chief
executive, Stephan Olivier
(right) and CDC chief executive,
Pepi Silinga (left).
AfriSam has a strong presence in Tanzania through its 62,5% ownership of Tanga Cement Company
Limited, which plays an important part in the company’s growth strategy.
