PPC to build cement plant in Western Cape

PPC’s board of directors has approved a capital investment of R3 billion (approx.US$160mn) to construct a state-of-the-art integrated cement plant, marking a major strategic step for the leading Southern African cement producer

The new facility, which will be built at an existing PPC site in the Western Cape, is set to replace and expand current production capabilities with an annual output capacity of 1.5 million tons. Existing plants in the region will remain operational throughout the construction and commissioning period.

Matias Cardarelli, PPC CEO, said, “This capital expenditure creates a step change for PPC: in competitiveness, technology and the markets we can serve. The plant ensures compliance with the latest environmental regulations and uses alternative fuels, promoting a more sustainable approach.”

The decision follows a careful review of PPC’s capital allocation strategy and its adherence to a net debt to EBITDA covenant of two times.

To deliver the project, PPC has signed an engineering, procurement, and construction (EPC) contract with Sinoma Overseas Development Company Ltd—renowned globally as a leader in cement equipment and engineering. Construction is scheduled to begin in the second quarter of 2025, with commissioning targeted for the end of FY27.

“The new plant cost, capabilities and cost efficiency will support PPC’s growth for many years to come. We remain focused on our discipline to deliver returns to our shareholders, and all other stakeholders,” concluded Cardarelli. 

Also read: PPC and Yellow Door Energy partner for solar energy expansion