On 9th April CemNet Newsroom informed us that PPC is in talks with China National Materials Co (Sinoma), about selling a stake in their DR Congo operation, PPC Barnet. There is an oversupply of cement in sub-Saharan Africa’s largest country, and PPC is in talks with China National Materials Co (Sinoma), about selling a stake in the Congo operation.
It seems strange that a country reported to be consuming more than 3 million tonnes per year, yet only producing 2.15 million tonnes per year would be considered to be oversupplied. Although the logistics of cement distribution in the DRC would mean cement needs to be produced reasonably close to where it might be consumed. Political uncertainties will also not be helping.
Dr Clark visited the PPC Barnet operation back in May 2017 as part of the technical due diligence for the proposed merger between PPC and AfriSam.