South African cement producer, PPC Limited, recorded solid performance for the financial year 2024 (FY24) buoyed by strong performance by its Zimbabwean operations, reported <a href="https://www.herald.co.zw/govt-projects-bouy-ppcs-performance/">The Herald</a>.
The group revealed that revenue rose 20,6 per cent to R10 058 million for the review period, driven primarily by a strong performance in PPC’s Zimbabwean operation.
The South African and Botswana operations revenues increased only marginally by 5.2 per cent, driven by price increases and increased sales of clinker to Zimbabwe.
In contrast, revenue from the materials businesses declined by 6 per cent compared to the previous year.
According to the performance review update, PPC’s operation in Zimbabwe registered a strong recovery in 2024 albeit off a low base following the extended maintenance shutdown of the kiln in the first half of 2023. Said PPC:
<blockquote>
Zimbabwe won back the market share it had lost with demand across both residential construction and Government-funded infrastructure projects.
</blockquote>
Cement sales volumes in Zimbabwe rose by 36,6 per cent when compared to the prior year.
During the year under review, PPC Zimbabwe’s revenue almost doubled, increasing by 90,9 per cent in rand terms to R3 346 million on strong cement volumes and price increases.
PPC said the full-year impact of the 5 per cent selling price increase that was effected in August 2022 (prior year) and the 4 per cent sales price increase effected in January 2024 also contributed to the revenue increase.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) margins reduced marginally to 20,2 per cent compared to 20,8 per cent in FY23 but significantly off the half-year margins of 24,6 per cent due to high electricity costs resulting from a gradual tariff increase.
Clinker purchases also continued in H2 FY24 and the full cost of purchased clinker was 169 percent higher than the prior year.
The Zimbabwe unit paid a US$11 million dividend during the year compared to US$10 million in the prior year.
Meanwhile, the unit remains suspended from the Zimbabwe Stock Exchange (ZSE) following its suspension in June 2020 together with Old Mutual and Seed Co International on allegations they were fueling inflation.
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Zimbabwean Government Projects Buoy PPC Performance

<a href="https://www.pindula.co.zw/Pretoria_Portland_Cement_Limited">Pretoria Portland Cement (PPC) Company Limited</a>, South Africa’s largest cement maker, is reportedly considering selling its Zimbabwe business for about $200 million.
A sale will help the company, founded in 1892, to focus on its South African operations, according to <a href="https://www.engineeringnews.co.za/article/ppc-weighs-sale-of-zimbabwe-unit-2023-02-07">Engineering News</a>.
Sources who spoke on condition of anonymity said discussions are at an early stage. 
Pricing negotiations are said to be ongoing, and there is no guarantee that a deal will go ahead. 
In responses to questions by Bloomberg, the company said:
<blockquote>
PPC regularly receives unsolicited approaches for various parts of its businesses, including PPC Zimbabwe.
PPC’s board has a duty to assess any such approaches on their respective merits.
</blockquote>
The PPC unit in Zimbabwe has attracted interest from a local company involved in road construction and home building, sources said.
PPC manages to conduct about 80% of its sales in US dollars, driven by demand for its products in mining, residential construction and government-funded infrastructure projects, according to the company’s trading statement.
Demand for the construction material is expected to expand to 1.6 million tons this year, an increase of about 60% from 2017, according to PPC. 
The alleged plan to sell the Zimbabwean unit comes as some overseas investors are fleeing Zimbabwe as it grapples with a currency crisis and the effects of US sanctions on many of the nation’s politicians and business people.
Holcim sold its business in the Southern African nation last year to a local firm.
A number of banks including Barclays and <a href="https://zero.pindula.co.zw/5-investors-make-bids-to-acquire-standard-chartered-bank-zimbabwe/">Standard Chartered are also leaving</a> Zimbabwe. 
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PPC Reportedly Considering Selling Its Zimbabwe Business

Three children aged 11, 12, and 14, have been admitted to the hospital with burn injuries after allegedly stepping on the chemical waste that cement manufacturer <a href="https://www.pindula.co.zw/Pretoria_Portland_Cement_Limited">Pretoria Portland Cement (PPC)</a> had “carelessly” dumped. 
On January 13, the boys were herding cattle at the business’s Colleen Bawn, Matabeleland South, facility when they stepped in hot dust created by the burning of clay and limestone.
The three kids are being treated in Bulawayo’s Mater Dei Hospital.
<a href="https://zero.pindula.co.zw/wp-content/uploads/2023/01/PPC.jpg">Graphic Image of the burnt kids</a>
PPC claimed in a statement seen by <a href="https://www.zimlive.com/ppc-battles-negligence-claims-after-3-boys-suffer-severe-burns-at-dust-pile/">ZimLive</a> that “investigations into the event have been launched in accordance with the company’s policies.“
The company said that it had “aided with all medical support required” and said that the boys were “stable” in the hospital.
According to company sources, the area where the electrostatic precipitation (EP dust) was disposed of was not intended for that use because it was outside of PPC’s fenced-in area, endangering the nearby populations. An employee is quoted as saying:
<blockquote>
The Environmental Management Agency once stopped the dumping of waste at the dumpsite. Dumping of EP dust there is clearly against environmental protocols.
Dumping of EP dust should be rare, and the increased dumping clearly indicates PPC is struggling with managing waste.
</blockquote>
The PPC insider claims that there was another incident early last year in which two individuals experienced slight burns in the same location.
High temperatures are used to burn clay and limestone, and the dust that does not become clinker—the primary raw material used to make cement—is thrown away.
According to a PPC insider, the business had previously altered the dust reduction technology, which prevented EP particles from blowing into the environment via chimneys. The EP dust builds up under the new method and must be regularly removed to dumpsites.
In addition, he challenged the assertion made by PPC that the incident occurred on its “industrial dumping site in the western section” of Colleen Bawn. The worker said:
<blockquote>
That’s not true. The incident happened in a clay stockpile area, which is not a designated dumpsite for EP dust. How can they dump hot material outside the fence? That place was identified for dumping clay to close a hole that had been dug there, after which dumping was supposed to stop. The dust pile shouldn’t be as high as it is now.
</blockquote>
He claimed PPC was in violation of environmental procedures and had failed to “control recognised hazards” as a member of the International Organisation for Standardisation (ISO) 45001.
When questioned about the allegations of negligence, Mavellas Sibanda, head of operations and projects at PPC, denied that they had received a reprimand from EMA. He did, however, confirm that the company had stopped dropping EP dust in the vicinity of the event on Friday.
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