Cement Exports Fall As Construction Expands

Sunday 20th of May 2007
PLUS
South Africa’s cement exports dropped by 34% in 2006 as the country’s construction boom expanded in lieu of the 2010 world soccer cup. Only 156,256 tons of cement were exported in 2006, or just 1% of exports, according to the latest Cement and Concrete Review published by the Cement and Concrete Institute. Cement exports have been declining for the past ten years with the exception of two peaks in 1999 and 2002. The review attributed the decline to rising local demand, which limited the amount of cement available for export, and the strength of the rand, which decreased the competitiveness of South African exports. South African cement exports typically go to neighboring countries and Indian Ocean islands. All 4 South African cement manufacturers have begun importing clinker or cement to meet domestic demand and total cement imports were about 1 million tons of cement product in 2006. Investment in new production capacity is also up. Pretoria Portland Cement, the largest producer, is expanding capacity by 1 million tons per year at a cost of R1.68 billion ($240 million). Lafarge South Africa, the local subsidiary of the French building materials group, is expanding capacity by 1 million tons at a cost of R1.2 billion ($171 million). NPC, owned by Cimpor Cimentos de Portugal, is expanding its Simuma plant in KwaZulu-Natal as a cost of R800 million ($114 million). Most of these projects are scheduled to come on stream in 2008.

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