PPC approves Construction of new integrated cement plant in the Western Cape
Referring to the press release published on 16 January 2025, in which it was announced that, subject to satisfactory feasibility studies and the approval by PPC’s board of directors, PPC would embark on the construction of a new state-of-the-art integrated cement plant, which would commence in the second quarter of 2025 and would be commissioned by the end of calendar year 2026.
The board, having considered PPC’s capital allocation criteria and its current two times net debt to EBITDA covenant, has now approved the capital expenditure of R3 billion for the build of the new plant. 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, which has all the necessary permits in place. PPC’s existing plants in the Western Cape will continue to operate during the construction and commissioning of the new plant.
The board has also approved that PPC enter into an engineer, procure and construct (“EPC”) contract with Sinoma Overseas Development Company, the leading cement equipment and engineering company in the world, in respect of the construction of the plant. As anticipated, Sinoma will commence its work under the EPC contract in the second quarter of calendar year 2025.
