Monday, May 17, 2010

Decline in Cement Demand

Last week Wednesday, Business Day ran an article penned by Thabang Mokopanele titled “Infrastructure Slowdown Worries PPC”. For those who may not be aware PPC stands for Pretoria Portland Cement and they are South Africa’s biggest cement manufacturer.

The gist of it is, they are somewhat unhappy at the slow pace of implementation of government's multibillion- Rand infrastructure spend which they say is contributing to the decline in cement demand.

The infrastructure spend they are referring to has got nothing to do with airports and soccer stadiums. Government supposedly plan to spend R846bn on projects such as roads, water works, building of schools and clinics in rural areas, over the next three years.

PPC CEO Paul Stuiver told Business Day that he wondered whether the money would be spent in three years as planned.

"We are obviously very happy about the planned projects, but the general comment is that the willingness and intent is there but the speed is not there. One has to start questioning whether this will be done in three years," he reportedly said.

Read Business Day Article

Ernest Roper


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