JSE-listed construction materials company PPC has signed a memorandum of agreement (MoA) with international engineering company Sinoma Overseas to cooperate on various initiatives aimed at enhancing efficiencies and expanding production capacity at PPC’s operations in Zimbabwe.

This further aligns PPC Zimbabwe (PPCZ) and the PPC Group’s strategic intent and their Awaken the Giant turnaround strategy, which is based on unlocking internal value and pursuing value-accretive strategic projects to deliver sustainable profitable growth for the benefit of all stakeholders.

“The signing of this MoA is of key strategic importance to PPC. We are the leading cement producer in Zimbabwe, with an excellent footprint and we are operating in an environment where the construction sector is showing solid growth potential.

“PPCZ’s cement sales and results have increased over the past two years and we are now starting to prepare ourselves for the next growth phase,” PPC CEO Matias Cardarelli comments.

While the key short-term objective is to improve efficiencies and increase cement and clinker production at PPC’s Zimbabwean operations, the collaboration will also extend to an assessment of the capital expenditure and investment requirements to potentially increase cement and clinker production from the current levels by building a new integrated cement plant in Zimbabwe.

“We are looking forward to working with Sinoma Overseas, which is the world’s leading integrated solutions provider for cement technology, equipment and engineering services, and being able to benefit from their vast experience and expertise.

“Collectively, we aim to improve efficiencies and production levels at our current assets and potentially establish new clinker and cement production capacity in Zimbabwe,” PPCZ MD Ndima Rawana says.

Any potential new projects in Zimbabwe will be assessed strictly in line with the PPC Group’s capital allocation framework and will remain subject to PPC and PPCZ’s internal and external investment hurdles and approval processes.

“Our Awakening the Giant turnaround strategy continues to advance across the group. This includes particularly the Zimbabwean operations, where we believe there are additional and significant opportunities to be unlocked internally, together with exciting potential for future growth.

“Like we recently did in South Africa, it is now time to work with Sinoma Overseas to improve efficiencies at our current plants and to seriously assess the feasibility of the construction of a new integrated cement plant in the country,” Cardarelli concludes.