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The South African Cement Manufacturing Industry, including Lime and Related Materials
BY Carole Veitch
South Africa
24 January 2020
R 14 400.00 (ZAR)  
estimated $ 871.43 (USD) *
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The South African Cement Manufacturing Industry, Including Lime and Related Materials


The distressed state of the construction sector, the poor economy and reduced spending on infrastructure resulted in declining sales volumes of cement in 2019. Local producers of lime, cement and related products entered 2020 with declining production capacity utilisation rates, weakening demand and intensifying competition for market share. Although South Africa and its neighbours are oversupplied, imported cement continues to pour into the saturated market. The challenging local operating environment has been compounded by high fuel costs and energy insecurity.


Imports Surge


Anti-dumping duties that came into effect in 2015 stemmed the influx of Pakistani cement products. But since March 2018, imported cement from Vietnam has flooded the market and imports are undercutting local prices by as much as 45%. The Concrete Institute has asked the International Trade Administration Commission to investigate and has suggested trade protection in the form of tariffs. Role players say that cheap imported products are mainly used in the private building trade, notably in the informal sector.


Consolidation


In view of the challenging market conditions in the cement industry, stakeholders have proposed the need for consolidation for producers to take advantage of opportunities in sub-Saharan African countries that offer good growth prospects. Merger negotiations between PPC and AfriSam broke down in December 2017, but both indicated that they remain open to the possibility of a future merger.


Report Coverage


This report on the manufacture of cement, lime and related products assesses the state and size of the sector and the factors that influence it. There is comprehensive information on imports and exports, major players and their capacity and performance, and developments in the sector. There are profiles of 15 companies including major players such as PPC, AfriSam, Lafarge, NPC-Cimpor, Sephaku and Mamba. Other profiled companies include Cemza, which started producing cement at Coega in March 2019 and Bontebok Limeworks.


Page
1. INTRODUCTION 3
2. DESCRIPTION OF THE INDUSTRY 3
2.1. Industry Value Chain 7
2.2. Geographic Position 8
3. SIZE OF THE INDUSTRY 10
4. STATE OF THE INDUSTRY 13
4.1. Local 13
4.1.1. Trade 16
4.1.2. Corporate Actions 19
4.1.3. Regulations 20
4.2. Regulatory Developments 21
4.2.1. Enterprise Development and Socio-Economic Development 22
4.3. Continental 23
4.4. International 27
5. INFLUENCING FACTORS 29
5.1. Economic Environment 29
5.2. Construction and Government Expenditure on Infrastructure 30
5.3. Input Costs 30
5.4. Cheap Imports 31
5.5. Technology, Research and Development (R&D) and Innovation 31
5.6. Labour 33
5.7. Environmental Concerns 34
6. COMPETITION 36
6.1. Barriers to Entry 37
7. SWOT ANALYSIS 37
8. OUTLOOK 38
9. INDUSTRY ASSOCIATIONS 39
10. REFERENCES 39
10.1. Publications 39
10.2. Websites 40
APPENDIX 1 42
Summary of Notable players 42
COMPANY PROFILES 45
AFRIMAT LTD 45
AFRISAM (SOUTH AFRICA) (PTY) LTD 51
BONTEBOK LIMEWORKS (PTY) LTD 56
CEMZA (PTY) LTD 58
IDWALA INDUSTRIAL HOLDINGS (PTY) LTD 60
KERNEOS SOUTHERN AFRICA (PTY) LTD 63
LAFARGE INDUSTRIES SOUTH AFRICA (PTY) LTD 65
MAMBA CEMENT COMPANY (RF) (PTY) LTD (THE) 69
NPC INTERCEMENT (RF) (PTY) LTD 71
PBD HOLDINGS (PTY) LTD 74
PPC LTD 76
S A LIME AND GYPSUM (PTY) LTD 81
SAINT-GOBAIN CONSTRUCTION PRODUCTS SOUTH AFRICA (PTY) LTD 83
SEPHAKU HOLDINGS LTD 85
SPECIALTY MINERALS SOUTH AFRICA (PTY) LTD 88