As part of its southern Africa expansion strategy, Pretoria Portland Cement (PPC) has acquired three aggregate quarries from Quarries of Botswana.
The P50 million (US$6.8 million) acquisition is part of the cement giant’s expanding footprint and will make PPC’s Aggregates division the largest aggregate producer in Botswana.
New quarries in Gaborone, Francistown and Selebi-Phikwe, will expand PPC’s existing portfolio in Botswana to meet the local market demand for aggregates, which is a complimentary product to cement.
“Various alternatives were considered to increase PPC’s aggregates presence in Botswana. Both Gaborone and Francistown are forecast to be major growth nodes in Botswana and this was an obvious choice to develop our aggregates business further,” PPC’s executive for the Aggregates division, Riaan Redelinghuys said.
“Acquiring the assets of an existing business made more sense than embarking on a green fields expansion,” Redelinghuys added.
The investment will see PPC’s Aggregates division increase its total capacity from 3 million to about 4 million tons per annum and gain approximately 100 employees.
PPC CEO, Paul Stuiver said, “We recently communicated to our investors that we are pursuing expansion opportunities in other parts of Africa, however this acquisition shows we are still considering any good opportunities to expand our local business.”
PPC will release its annual results for the twelve months ending 30 September 2011 on 8 November 2011. The company is currently in a closed period.
PPC Aggregates division supplies construction aggregates to the civil construction sector and mineral products to the chemical, metallurgical and agricultural industries. Prior to this acquisition the division already owned two large quarries in Gauteng, South Africa and one in Gaborone, Botswana.
On the other hand, The Kgale quarry in Gaborone supplies an extensive range of granite products to the civil construction industry, including large construction firms, Readymix concrete producers, concrete product manufacturers and road construction projects.