South African competition set to intensify

The South African cement sector is set to see increased competition from the end of next year when Sephaku Cement starts production.

The company is set to be the first new market entrant since 1934 through the construction of its new Aganang cement plant. It is also constructing a grinding mill near Delmas, Mpumalanga and “We look like we will produce 2.5Mta from the end of next year,” , CEO Pieter Fourie told local press.

The Aganang works, near Lichtenburg in the North West Province,   will utilise secured limestone deposits on the farms Stiglingspan, Verdwaal and Klein Westerford, located 7km southwest of Itsoseng and 34km west of Lichtenburg. The Delmas plant, Mpumalanga, is situated closer to the markets in Gauteng and the fly ash source at Kendal Power Station, some 35km to the west. Approximately 50 per cent of the clinker produced in Aganang will be transferred to Delmas for further processing with an estimated production of 1.4Mta.

Sephaku is largely funded by Nigerian partner Dangote Cement. “Our plant will be more advanced than the old plants, some of them up to 50 years old, that other cement makers have in SA,” Mr Fourie said.