A new cement plant that will produce 2.2Million tones a year is set to be constructed in Algeria following partnership between an Algerian-based and South African cement firms. Abdelkrim Mansouri, Director General of the Algerian National Development Agency for Investment (NDAI) earlier reported that construction of the cement plant will begin soon since all the administrative procedures had been finalized.
“All administrative procedures have now been finalised and the initiators of this project will start the work of constructing the plant shortly,” he said.
The new cement plant will be undertaken at a cost of US$287m and will be financed 80% by Algerian banks and the two joint venture partners will contribute 20%. PPC had earlier said that the commissioning of the project was expected by the fourth quarter of 2016.
Hodna Algerian Cement Company and leading South African cement producer PPC are partnering in order to undertake the cement plant project. The cement plant project would be undertaken in accordance with rules that state that foreign companies will own a maximum 49% ownership for Algerian-based investments.
PPC CEO Ketso Gordhan had last year said that the new project would make the company generate 40% of PPC revenue be earned outside of South Africa. Kagiso Asset Management investment analyst Ross Heyns said that the project was prudent for the company and Algeria’s “good transport infrastructure” and low energy costs would make production costs lower to help the company become more profitable.
PPC has major operations in Southern Africa, in countries such as South Africa, Botswana and Zimbabwe.