The Manufacture of Cement, Lime and Related Materials
The Manufacture of Cement, Lime and Related Materials
This report focuses on the domestic and regional manufacture of cement, lime and related materials, including ground calcium carbonate (GCC) and precipitated calcium carbonate (PCC). The sector reported sales of an estimated R34.7bn in 2015 and employed more than 17,000 people.
Demand for Limestone
While 20.4 million tonnes of limestone was produced in South Africa in 2015, the demand for raw limestone was around 19.4 million tonnes. South Africa's cement industry uses 75% of the limestone mined annually, 9% is used by the metallurgical industry and 5% goes to agriculture. The remaining 11% of demand is used in numerous diverse industries with the manufacture of fine GCC and PCC for use in paper, paints, and plastics accounting for 1.4% of total limestone production.
Difficult Conditions
Demand in the cement industry is lagging behind supply and the sector is characterised by intense competition with consequently pressured profit margins. By contrast, competition is relatively low among producers of GCC and PCC, and profits are healthy. However, both the cement and limestone industries are feeling the consequences of the depressed economic environment and players are waiting on improved macroeconomic conditions to drive volume growth.
Report Coverage
The Manufacture of Cement, Lime and Related Materials examines overall production and demand as well as the performance of key players in South Africa and regional Africa. The report profiles 15 companies, including Idwala Industrial Holdings Ltd which holds more than 90% of the GCC market and Speciality Minerals South Africa (Pty) Ltd (SMSA), the sole producer of PCC in South Africa. The company operates locally in a joint venture with AECI and has its PCC manufacturing plant located in-house at the Mondi Merebank paper mill in KwaZulu-Natal. Also profiled is Sephaku Cement (SepCem), the first major entrant from the rest of Africa into the South African market.
Table of Contents
| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 3 |
| 2.2. | Geographic Position | 5 |
| 3. | SIZE OF THE INDUSTRY | 8 |
| 4. | STATE OF THE INDUSTRY | 14 |
| 4.1. | Local | 14 |
| 4.1.1. | Corporate Actions | 30 |
| 4.1.2. | Regulations | 32 |
| 4.2. | Enterprise Development and Social Economic Development | 34 |
| 4.3. | Continental | 35 |
| 4.4. | International | 40 |
| 5. | INFLUENCING FACTORS | 40 |
| 5.1. | Economic Environment | 40 |
| 5.2. | Infrastructure Spend and Government Initiatives | 41 |
| 5.3. | Input Costs | 44 |
| 5.4. | Labour | 45 |
| 5.5. | Technology, Research and Development (R&D) and Innovation | 46 |
| 5.6. | Environmental Concerns | 47 |
| 6. | COMPETITION | 48 |
| 6.1. | Barriers to Entry | 50 |
| 7. | SWOT ANALYSIS | 51 |
| 8. | OUTLOOK | 52 |
| 9. | INDUSTRY ASSOCIATIONS | 53 |
| 10. | REFERENCES | 54 |
| 10.1. | Publications | 54 |
| 10.2. | Websites | 54 |
| COMPANY PROFILES | 56 | |
| AFRIMAT LTD | 56 | |
| AFRISAM (SOUTH AFRICA) (PTY) LTD | 62 | |
| BONTEBOK LIMEWORKS (PTY) LTD | 67 | |
| CAPE LIME (PTY) LTD | 69 | |
| IDWALA INDUSTRIAL HOLDINGS LTD | 71 | |
| KERNEOS SOUTHERN AFRICA (PTY) LTD | 75 | |
| LAFARGE INDUSTRIES SOUTH AFRICA (PTY) LTD | 77 | |
| MAMBA CEMENT COMPANY (RF) (PTY) LTD (THE) | 84 | |
| NPC-CIMPOR (RF) (PTY) LTD | 86 | |
| PBD HOLDINGS (PTY) LTD | 89 | |
| PPC LTD | 91 | |
| S A LIME AND GYPSUM (PTY) LTD | 95 | |
| SAINT-GOBAIN CONSTRUCTION PRODUCTS SOUTH AFRICA (PTY) LTD | 97 | |
| SEPHAKU HOLDINGS LTD | 100 | |
| SPECIALTY MINERALS SOUTH AFRICA (PTY) LTD | 104 |
