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The Manufacture of Cement, Lime and Related Materials In South Africa 2022

Gary Phillips | South Africa | 20 April 2022

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R 13 500.00(ZAR) estimated $ 851.84 (USD)*

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Report Coverage

This report focuses on the manufacture of cement, lime and related products and includes information on the size of the industry in terms of production capacity, consumption and sales and state of the industry, including the competitive environment, corporate actions and financial and operational performance of listed companies. There are profiles of 13 companies including major players such as PPC, AfriSam, Lafarge, Sephaku and NPC, relatively new players including Mamba Cement and Cemza and lime producers such as SA Lime and Gypsum and Bontebok Limeworks.

The Manufacture of Cement, Lime and Related Materials in south Africa

The South African cement manufacture industry is oversupplied and under threat from low-cost imports and the proliferation of low-cost blended cements. Protracted economic stagnation has hampered the recovery of the industry as construction and government infrastructure spending have provided little growth opportunity over the past five years. Three new entrants in the last decade have put further pressure on capacity utilisation and producer prices. Cement manufacture is energy-intensive and clinker production, on which the majority of the industry is based, is particularly emissions-intensive. These and other sustainability issues are driving technological change in the industry.

Imports

Although South Africa has surplus cement production capacity, imported cement continues to flood into the country. The last two years have presented the industry with opportunities due to the temporary disruption of imports and the adoption of a more aggressive localisation policy by government. However, the domestic market remains overtraded, leading to significant capacity under-utilisation and occasional price wars. There has been an increase in cheap imports and independent blending operations, and protection against the trade of sub-standard product is limited. While the government has offered protection to the local industry through anti-dumping measures, these protections have reached their legislated lifespan and are under review, bringing uncertainty to the industry.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 5
2.2. Geographic Position 6
2.3. Size of the Industry 8
2.4. Key Success Factors and Pain Points 16
3. LOCAL 17
3.1. Key Trends 17
3.2. Notable Players 19
3.3. Trade 21
3.4. Corporate Actions 28
3.5. Regulations 29
3.6. Enterprise Development and Social Economic Development 31
4. AFRICA 32
5. INTERNATIONAL 36
6. INFLUENCING FACTORS 38
6.1. COVID -19 38
6.2. Economic Environment 39
6.3. Government Expenditure on Infrastructure 41
6.4. Environmental Issues 43
6.5. Technology, Research and Development (R&D) and Innovation 45
6.6. Input Costs 46
6.7. Labour 48
7. COMPETITIVE ENVIRONMENT 50
7.1. Competition 50
7.2. Ownership Structure of the Industry 51
7.3. Barriers to Entry 52
8. SWOT ANALYSIS 52
9. OUTLOOK 53
10. INDUSTRY ASSOCIATIONS 54
11. REFERENCES 54
11.1. Publications 54
11.2. Websites 55
APPENDIX 1 57
Summary of Notable Players 57
COMPANY PROFILES 60
Afrimat Ltd 60
Afrisam (South Africa) (Pty) Ltd 66
Bontebok Limeworks (Pty) Ltd 72
Cemza (Pty) Ltd 74
Idwala Industrial Holdings (Pty) Ltd 76
Kerneos Southern Africa (Pty) Ltd 79
Lafarge Industries South Africa (Pty) Ltd 81
Mamba Cement Company (RF) (Pty) Ltd (The) 85
NPC Intercement (RF) (Pty) Ltd 87
PBD Holdings (Pty) Ltd 90
PPC Ltd 92
S A Lime and Gypsum (Pty) Ltd 97
Sephaku Holdings Ltd 99