PPC Zimbabwe sales up

period.
In its trading update for the last quarter, PPC said its cement sales in Zimbabwe had continued to grow.

PPC, however, said it remains cautiously optimistic regarding the outlook for cement demand in South Africa and Zimbabwe.
“Although the global economic turmoil continues, we remain cautiously optimistic regarding the outlook for cement demand in South Africa and Zimbabwe.
“Current trends in cement demand and prices should result in improved results during the first half of our 2012 financial year,” said the company.

Zimbabwe is one of the countries in the region in which PPC has operations, which should typically reflect high growth in populations, gross domestic product and cement demand, new opportunities, and higher delivery returns for producers of cement and related products.

The country’s construction industry proffers immense business for cement and allied products due to its huge housing and infrastructure deficits.
PPC also has operations in Mozambique. Meanwhile, cement sales for the South African cement industry as a whole in the quarter under review increased by 7 percent compared to the comparable period in the prior year.

At the same time, PPC reported a decline in cement sales in Botswana in line with a general construction industry slowdown in that country.
The company said cement-pricing momentum established during 2011 in South Africa, Botswana and Zimbabwe continued into 2012, although administered energy prices remains a challenge for the industry.
Lime sales improved during the quarter on the back of improved demand from exports and the local steel industry. Aggregate volumes in both South Africa and Botswana showed recovery in a very competitive environment.