“This capital expenditure creates a step change for PPC: in competitiveness, technology and the markets we can serve. The plant ensures compliance with the latest environmental regulations and uses alternative fuels, promoting a more sustainable approach”. Matias Cardarelli, PPC Chief Executive
Zhu Linhe, Chairman at Sinoma Overseas Development (left) and Matias Cardarelli, PPC Chief Executive.
The board of directors (board) of PPC, the leading Southern African supplier of cement and related products, has approved capital expenditure of R3 billion for the build of the new plant.
This decision was made after the board considered PPC’s capital allocation criteria and its current two times net debt to EBITDA covenant. The plant, with a capacity of 1,5 million tons of cement per annum, will replace and increase existing capacity and will be constructed at an existing PPC site in the Western Cape. PPC’s existing plants in the Western Cape will continue to operate during the construction and commissioning of the new plant.
Following this board approval, PPC entered into an engineer, procure and construct (EPC) contract with Sinoma Overseas Development Company Ltd, the leading cement equipment and engineering company in the world, for the construction of the plant. Construction will commence in the second quarter of 2025 and the plant will be commissioned by the end of FY27.
Cardarelli concluded, “The new plant cost, capabilities and cost efficiency will support PPC’s growth for many years to come. We remain focused on our discipline to deliver returns to our shareholders, and all other stakeholders”.