PPC and Sinoma Overseas Development Company have entered into a memorandum of agreement for the construction of a new R3 billion state-of-the-art integrated cement plant.
This new plant will have the ability to provide an enhanced value proposition to both existing and new customers across the Western, Eastern and Northern Cape regions.
This comes after PPC entered into a strategic co-operation agreement with Sinoma in July 2024, in terms of which the parties agreed to partner with each other to identify new projects and opportunities to improve efficiencies of PPC’s operations.
This ambitious initiative will enhance PPC’s production capacity by introducing a state-of-the-art facility capable of producing 1.5 million tons of cement per annum.
Strategically located at one of PPC's existing sites, the new plant promises a cutting-edge approach to cement manufacturing, equipped with the latest technology, including a dedicated solar generation system.
This innovation signifies a substantial leap towards energy efficiency, aiming to reduce coal consumption and lower carbon emissions per ton of cement produced.
PPC CEO, Matias Cardarelli, said South Africa’s cement industry was undergoing rapid change, and they were working on building a stronger and more efficient PPC to become the sustainable leader of the industry in the years to come.
“This changing market dynamic urgently requires modern and cost-efficient assets, and environmentally conscious cement producers. At the heart of our turnaround “Awaken the Giant” strategy is the active pursuit of strategic opportunities and projects to ensure that we are successful in a more competitive future market context,” Cardarelli said.
“With this new and most advanced energy and environmentally efficient plant in the country, we will be able to supply our customers with lower-carbon cement at a more competitive cost. It represents a major step in the sustainability of our business moving forward and will play a key role in achieving PPC’s commitment to reduce its carbon emissions and to deliver value to shareholders.”
Currently, feasibility studies for the plant are nearing completion, with both PPC and Sinoma collaborating to finalise the project scope and associated agreements over the next three months.
Pending approval from PPC’s board of directors, construction is projected to commence in the second quarter of 2025 and is expected to be operational by the close of 2026.
During the construction and commissioning of the new plant, existing facilities in the Western Cape will remain operational, ensuring continuity of funding and smooth transitions throughout the process.
Cardarelli said that by substituting existing capacity with a more efficient, environmentally friendly and larger plant, they were securing PPC’s competitiveness in a key market, by delivering the best value proposition in the region to its customers.
“This will better position PPC for sustained profitability for decades to come and will ensure the group's long-term future. It also represents commitment and support of the national objective of economic growth and infrastructure development,” he said.
“The pursuit of this industrial investment, which will be one of the largest in the Western Cape history, demonstrates the continued confidence in South Africa by the PPC board and management.”
BUSINESS REPORT