South africa: Nigerian investors back R3bn SA cement plant plan
Thématique :
sud afrique
Nigerian cement producer Dangote Cement and South African company Sephaku Holdings would start construction on a R3-billion, 2,2-million ton a year energy efficient cement plant in South Africa, in January 2009.
The two companies on Friday announced that they had entered into a shareholders agreement for Sephaku Holdings' subsidiary, Sephaku Cement, for the construction of the cement plant.
The joint venture would mark the first new entrant into the cement market since 1934, and the first black-owned plant in South Africa, and was expected to start producing cement by the end of 2010.
"The new plant will be the largest single cement production line in South Africa and will be the most efficient in terms of energy and power consumption and will set the benchmark for emissions," commented Sephaku Cement CEO Pieter Fourie.
The joint venture project formed part of Dangote Cement's plans to develop a cement production capacity of 50-million tons by 2012, while also moving Sephaku Holdings from being an explorer to a producer, the companies announced.
"The joint venture with Sephaku Holdings and Sephaku Cement is a key part of our Pan-African expansion program and provides direct access to the large South African market," said Dangote Cement CEO Tony Hadley.
Sephaku Holdings chairperson Lelau Mohuba added that the agreement formed part of its broader strategy to position itself in the key areas of the South African and African economy.
The joint venture partners were now in discussion with technical partners for the construction of the plant.
Sephaku added that it was in an advanced stage of finalising debt funding towards the capital construction cost of the project.
In April, Dangote had bought a 19,8% stake in Sephaku Cement through a private placement. Sephaku Holdings intended to use the proceeds from this to finance part of the construction costs of the plant.
In terms of the agreement signed in October, Dangote would eventually take a 45% stake in Sephaku Cement, with Sephaku Holdings retaining the balance.
Dangote Cement is part of Nigeria's diversified Dangote Industries group, while Sephaku Cement forms part of the industrial division of Sephaku Holdings, whose interests also include mining and investment holdings.
Dangote Cement was expanding its operations in Africa and had projects in Senegal and South Africa. It was also in negotiations to acquire projects in a number of other African countries.
Further, the Nigerian company expected to achieve 26-million tons of production capacity in Nigeria by 2010.
The two companies on Friday announced that they had entered into a shareholders agreement for Sephaku Holdings' subsidiary, Sephaku Cement, for the construction of the cement plant.
The joint venture would mark the first new entrant into the cement market since 1934, and the first black-owned plant in South Africa, and was expected to start producing cement by the end of 2010.
"The new plant will be the largest single cement production line in South Africa and will be the most efficient in terms of energy and power consumption and will set the benchmark for emissions," commented Sephaku Cement CEO Pieter Fourie.
The joint venture project formed part of Dangote Cement's plans to develop a cement production capacity of 50-million tons by 2012, while also moving Sephaku Holdings from being an explorer to a producer, the companies announced.
"The joint venture with Sephaku Holdings and Sephaku Cement is a key part of our Pan-African expansion program and provides direct access to the large South African market," said Dangote Cement CEO Tony Hadley.
Sephaku Holdings chairperson Lelau Mohuba added that the agreement formed part of its broader strategy to position itself in the key areas of the South African and African economy.
The joint venture partners were now in discussion with technical partners for the construction of the plant.
Sephaku added that it was in an advanced stage of finalising debt funding towards the capital construction cost of the project.
In April, Dangote had bought a 19,8% stake in Sephaku Cement through a private placement. Sephaku Holdings intended to use the proceeds from this to finance part of the construction costs of the plant.
In terms of the agreement signed in October, Dangote would eventually take a 45% stake in Sephaku Cement, with Sephaku Holdings retaining the balance.
Dangote Cement is part of Nigeria's diversified Dangote Industries group, while Sephaku Cement forms part of the industrial division of Sephaku Holdings, whose interests also include mining and investment holdings.
Dangote Cement was expanding its operations in Africa and had projects in Senegal and South Africa. It was also in negotiations to acquire projects in a number of other African countries.
Further, the Nigerian company expected to achieve 26-million tons of production capacity in Nigeria by 2010.
