THE leading Southern African supplier of cement and related products, PPC, has signed a memorandum of agreement with Sinoma Overseas Development Company for the construction of a new R3-billion state-of-the-art integrated cement plant in the Western Cape.
PPC and Sinoma, the leading cement equipment and engineering company in the world, entered into a strategic co-operation agreement in July 2024 to collaborate with each other to identify new projects and opportunities to improve efficiencies at PPC’s operations.
The 1,5 million tons of cement per annum plant, which will replace and increase existing capacity, is planned to be constructed at one of PPC’s current sites.
The new plant will be equipped with the latest technology, including a fully dedicated solar generation system, and will enable PPC to supply the lowest carbon cement in the country.
Overall, the technology will result in substantial improvements in energy efficiency, reduced coal consumption and lower emissions per ton of cement produced.
PPC CEO, Matias Cardarelli, said, “South Africa’s changing cement market dynamic urgently requires modern and cost-efficient assets, and environmentally conscious producers.
At the heart of our “Awaken the Giant” turnaround strategy is the active pursuit of strategic opportunities and projects to ensure that we are successful in a more competitive future market context. 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”
While the feasibility studies for the plant have reached an advanced stage, over the next three months the parties will finalise the scope and final assessment of the new plant, as well as the associated turn-key engineer, procure and construct (“EPC”) agreements.
Subject to PPC’s board approval, it is anticipated that the construction of the new plant will start in the second quarter of 2025 and will be commissioned by the end of calendar year 2026.
