pccRegional cement and lime producer PPC says an increase in cement sales in Zimbabwe has boosted the group’s overall sales volume at a time when major markets like South Africa have remained subdued.The chairman of the Johannesburg Stock Exchange-listed group, Bheki Sibiya, said in a trading update for period ending December 2014 released this week that Zimbabwe and Botswana were the main drivers of volumes during the quarter.

“Domestic sales volume growth in Zimbabwe and Botswana has shown an upward trend. However, in all territories muted, selling price growth has been achieved,” he said.

Sibiya said that construction work on a new $80 million plant in Harare was in progress although no further details were provided.

The plant is expected to be operational next year.PPC has cement manufacturing plants in Bulawayo and Colleen Bawn in Matabeleland South.

The Harare project among others in Africa is expected to boost the demand for cement products.

“The release of major infrastructural projects in   South Africa, Botswana and Zimbabwe would provide a key driver for demand of cement products,” said Sibiya.

PPC also has subsidiaries in Rwanda, Ethiopia and the Democratic Republic of Congo.

The increase in sales in Zimbabwe, however, was a sharp contrast to the group’s performance in its main market, South Africa.

“The operating environment in South Africa remains tough on the back of weak economic growth, which has been exacerbated by power shortages, and increased competitor activity,” Sibiya added.

Meanwhile, former South Africa Reserve Bank governor Tito Mboweni has been elected to the PPC board.

Mboweni was elected together with Charles Naude, Daniel Ufitikizeri, Nicky Goldin, Timothy Leaf-Wright and Peter Nelson after  receiving the most number of votes at PPC’s annual general meeting (AGM) in South Africa on Monday.

Shareholders were further advised that Joe Shibambo and Nomalizo Beryl Langa-Royds did not offer themselves for re-election and, as such, had resigned as non-executive directors.

PPC executive director Tryphosa Ramano had also resigned to allow for the reconstitution of the board but would remain the company’s CEO.

In December, the cement producer named Darryll Castle as its new CEO, effective January 12, following the acrimonious exit of former CEO Ketso Gordhan in September amid a public spat with the board of directors.

PPC is considering a merger proposal from industry counterpart AfriSam, put forward last month. — Online/Business Reporter

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