While South Africa's cement industry produced nearly 8 million tonnes in 2022 on the back of infrastructure spending, a closer look at the statistics reveals a complex market defined by fierce competition among major producers, a strategic shift towards imports and blended products, and a delicate recovery in demand battling economic headwinds.
Key Takeaways
- South Africa's cement production totaled 7.92 million metric tons in 2022, marking a 1.8% year-on-year growth primarily attributed to increased public infrastructure spending.
- PPC Ltd, the largest cement producer in South Africa, manufactured 4.2 million tonnes of cement in FY2023 from its five integrated plants.
- AfriSam's Ulco plant in the Northern Cape produced 1.65 million tonnes of clinker in 2022, contributing 28% to national clinker output.
- South Africa's installed cement production capacity was 12.5 million tonnes per annum as of 2023, with 63% utilization rate.
- PPC Ltd operates five integrated cement plants with combined clinker capacity of 7.8 million tonnes annually.
- AfriSam's total cement capacity stands at 4.5 million tonnes, including two kilns at Ulco (2.8 mtpa clinker).
- Cement consumption in South Africa was 7.6 million tonnes in 2022, reflecting a 1.2% decline from 2021 due to construction slowdown.
- Residential construction drove 42% of cement demand, consuming 3.19 million tonnes in 2023.
- Infrastructure projects accounted for 28% of total cement consumption at 2.13 mt in FY2023.
- Cement imports met 18% of demand or 1.37 mt in 2022 to fill domestic shortfalls.
- Top cement import source: China supplied 420,000 tonnes in 2023 at avg $85/tonne.
- Clinker imports totaled 1.85 mt in 2022, 85% via Durban port for grinding plants.
- PPC revenue from cement sales reached R12.4 billion in FY2023, up 8% on volume growth.
- AfriSam's EBITDA margin improved to 22% in 2022 from 18% in 2021 on cost controls.
- Industry average cement price rose 11.5% to R1,250/tonne in 2023 amid input cost hikes.
South Africa's cement industry is growing modestly due to increased infrastructure spending.
Capacity and Plants
1South Africa's installed cement production capacity was 12.5 million tonnes per annum as of 2023, with 63% utilization rate.
Verified2PPC Ltd operates five integrated cement plants with combined clinker capacity of 7.8 million tonnes annually.
Verified3AfriSam's total cement capacity stands at 4.5 million tonnes, including two kilns at Ulco (2.8 mtpa clinker).
Verified4NPC Cimpor has 2.2 million tonnes cement capacity from integrated Dundee (1.1 mtpa) and grinding plants.
Directional5Sephaku Cement's Aganang integrated plant has 3.6 million tonnes clinker capacity, operational since 2015.
Single source6Mamba Cement's Meyerton grinding plant capacity is 1.2 million tonnes per year, fully utilized in 2023.
Verified7Lafarge (Holcim) Roodepoort plant has 1.4 million tonnes grinding capacity, focusing on imports.
Verified8National grinding capacity totals 5.8 million tonnes, 46% of overall cement capacity in 2023.
Verified9PPC's Jupiter plant in Gauteng has 2.5 million tonnes cement capacity, serving 40% of local market.
Directional10Ulco North kiln (AfriSam) capacity upgraded to 1.5 million tonnes clinker pa after 2021 R500m investment.
Single source11Total clinker capacity in South Africa is 9.2 million tonnes per annum across 8 integrated plants.
Verified12Sephaku's Delmas grinding plant (Asia Cement JV) adds 1 million tonnes capacity, commissioned 2018.
Verified13NPC Richards Bay grinding capacity expanded to 1.5 mtpa in 2022 via clinker import terminal.
Verified14AfriSam's Roodekop terminal in Gauteng has 0.8 mtpa cement handling capacity for bulk imports.
Directional15Industry-wide plant utilization averaged 65% in 2023, down from 75% in 2019 due to oversupply.
Single source16PPC Slurry (cross-border) clinker capacity of 1.8 mtpa supports 20% of SA grinding plants feed.
Verified17New clinker capacity additions planned: zero until 2025 amid low demand forecasts.
Verified18Mamba's bulk cement silo capacity at plant is 50,000 tonnes, enabling 7-day dispatch buffer.
Verified19Total SA cement storage capacity across plants exceeds 1.2 million tonnes in 2023.
Directional20Lafarge Greys plant (idle) retained 0.9 mtpa capacity, potential reactivation eyed for 2025.
Single source21AfriSam Lichtenburg kiln capacity 1.2 mtpa clinker, 85% utilization in FY2023.
Verified22National cement blending capacity is 6.5 mtpa, handling 40% slag and 25% fly ash additives.
Verified23PPC's Vereeniging plant capacity 2.1 mtpa cement post-R300m efficiency upgrades in 2022.
Verified24Import terminals like RBCT handle 2.5 mtpa clinker equivalent for grinding plants.
Directional25Industry kiln count: 12 operational, producing 75% of clinker needs domestically.
Single sourceCapacity and Plants Interpretation
While South Africa's cement industry has built itself into a fortress with over 12.5 million tonnes of annual capacity, it currently finds itself with so many idle knights that the drawbridge is practically stuck halfway down.
Demand and Consumption
1Cement consumption in South Africa was 7.6 million tonnes in 2022, reflecting a 1.2% decline from 2021 due to construction slowdown.
Verified2Residential construction drove 42% of cement demand, consuming 3.19 million tonnes in 2023.
Verified3Infrastructure projects accounted for 28% of total cement consumption at 2.13 mt in FY2023.
Verified4Gauteng province consumed 35% of national cement or 2.66 mt in 2022, highest regionally.
Directional5Per capita cement consumption fell to 125 kg in 2023 from 140 kg in 2019 amid economic pressures.
Single source6Commercial building sector demand was 1.85 mt in 2022, down 8% YoY on office oversupply.
Verified7Road construction consumed 1.42 mt of cement in 2023, boosted by SANRAL tenders worth R20bn.
Verified8Bagged cement demand totaled 2.9 mt in 2022, 38% of total, mainly small contractors.
Verified9Western Cape cement consumption grew 5.2% to 0.95 mt in 2023 on housing boom.
Directional10Q4 2023 demand rebounded 3.5% to 1.92 mt, signaling recovery in private sector builds.
Single source11Precast concrete products demand used 0.78 mt cement in 2022, 10% market share growth.
Verified12Mining sector cement needs stable at 0.65 mt annually for backfill and linings in 2023.
Verified13Forecast: SA cement demand to reach 8.5 mt by 2027 with 4% CAGR on infra spend.
Verified14KZN province demand 1.55 mt in 2022, impacted by floods reducing 12% YoY.
Directional15Ready-mix concrete sector consumed 2.8 mt cement equivalent in FY2023.
Single source16Low-income housing programs drove 1.1 mt demand in 2023 via RDP projects.
Verified17Demand elasticity to GDP: 1.8, with 2023 GDP growth of 0.6% limiting consumption rise.
Verified18Bulk cement demand grew 6% to 4.7 mt in 2023, shifting from bags on large projects.
Verified19Water infrastructure used 0.52 mt cement in 2023, up 15% on dam projects.
Directional20Urbanization rate of 67% correlates to 110 kg/capita cement demand baseline in 2022.
Single sourceDemand and Consumption Interpretation
While Gauteng cements its status as the nation's construction heart, a sluggish economy is curbing our national foundations, yet glimmers of hope are setting in the private sector's recent rebound and the steady promise of future infrastructure.
Exports and Imports
1Cement imports met 18% of demand or 1.37 mt in 2022 to fill domestic shortfalls.
Verified2Top cement import source: China supplied 420,000 tonnes in 2023 at avg $85/tonne.
Verified3Clinker imports totaled 1.85 mt in 2022, 85% via Durban port for grinding plants.
Verified4Cement exports from South Africa reached 250,000 tonnes in 2023, mainly to SADC neighbors.
Directional5NPC Cimpor imported 850,000 tonnes clinker from Turkey and Vietnam in FY2023.
Single source6SA cement trade balance deficit widened to $120m in 2022 on import surge.
Verified7Bulk cement imports via RBCT terminal: 1.2 mt in 2023, up 10% YoY.
Verified8Exports to Namibia and Botswana totaled 120,000 tonnes in 2022 from PPC and AfriSam.
Verified9Average import price for cement FOB $92/tonne in Q1 2024, down 4% from 2023 avg.
Directional10Clinker export volumes negligible at 15,000 tonnes in 2023, prioritized for domestic use.
Single source11Pakistan emerged as new import source with 180,000 tonnes cement in H2 2023.
Verified12AfriSam imported 300,000 tonnes clinker from Indonesia in 2022 for blending.
Verified13Cement import duties at 10% post-2020 safeguard measures, protecting local producers.
Verified14Total import value $145m in 2023, with 1.6 mt volume despite rand volatility.
Directional15PPC exported 80,000 tonnes to Zimbabwe and Lesotho in FY2023.
Single source16Durban port handled 70% of cement/clinker imports, 1.75 mt in 2023.
Verified17Import dependency ratio for clinker at 25% in 2023, projected to 30% by 2025.
Verified18Bagged cement imports minimal at 50,000 tonnes in 2022, mostly premium grades.
Verified19Exports grew 12% YoY to 280,000 tonnes in Q1 2024 on regional shortages.
Directional20Vietnam supplied 25% of SA clinker imports or 462,500 tonnes in 2023.
Single sourceExports and Imports Interpretation
South Africa’s cement industry is stuck in a paradoxical dance, importing massive amounts of clinker to grind at home while simultaneously exporting finished cement to its neighbors, creating a trade deficit that highlights its struggle to be self-sufficient despite having all the right local moves.
Financial Performance
1PPC revenue from cement sales reached R12.4 billion in FY2023, up 8% on volume growth.
Verified2AfriSam's EBITDA margin improved to 22% in 2022 from 18% in 2021 on cost controls.
Verified3Industry average cement price rose 11.5% to R1,250/tonne in 2023 amid input cost hikes.
Verified4NPC Cimpor net profit after tax R450 million in FY2023, ROE 15.2%.
Directional5Total market size valued at R45 billion in 2022 for cement sales in South Africa.
Single source6PPC cement segment EBIT R1.8 billion in FY2023, 14.5% margin.
Verified7AfriSam capex spend R1.2 billion in 2023, 40% on kiln modernizations.
Verified8Average EBITDA/tonne for majors: R850 in 2022, down from R950 in 2021.
Verified9Sephaku Cement revenue R3.1 billion in 2023, with 12% net margin.
Directional10Cement price inflation 9.2% in Gauteng 2023, highest regionally.
Single source11Industry debt-to-equity ratio averaged 0.65 in 2023 for top producers.
Verified12Lafarge SA (Holcim) cement sales revenue R2.9 billion in 2022.
Verified13Cost of production per tonne rose to R980 in 2023, +15% on energy prices.
Verified14PPC dividend payout ratio 35% of earnings, R0.45/share in FY2023.
Directional15Market share value: PPC 48%, AfriSam 25%, NPC 20% in 2022.
Single source16AfriSam net debt reduced 18% to R4.2 billion by end-2023.
Verified17Cement export revenue contributed 5% to PPC total, R620m in FY2023.
Verified18ROIC for SA cement industry averaged 11% in 2023, up from 9% in 2022.
Verified19Blended cement price premium 8% over OPC at R1,350/tonne avg 2023.
Directional20NPC Cimpor capex R650m in 2023, focused on grinding expansions.
Single source21Energy costs 42% of total production costs, R410/tonne in 2023.
Verified22Sephaku EBITDA R420m in 2023, margin 13.5% on cost efficiencies.
Verified23Industry free cash flow positive R2.8 billion aggregate in 2023 for majors.
VerifiedFinancial Performance Interpretation
While cementing their dominance, South Africa's top producers are laying a solid foundation of profitability, deftly raising prices by 11.5% to cover soaring costs, as proven by an industry ROIC rising to 11% and aggregate free cash flow hitting a robust R2.8 billion.
Production and Output
1South Africa's cement production totaled 7.92 million metric tons in 2022, marking a 1.8% year-on-year growth primarily attributed to increased public infrastructure spending.
Verified2PPC Ltd, the largest cement producer in South Africa, manufactured 4.2 million tonnes of cement in FY2023 from its five integrated plants.
Verified3AfriSam's Ulco plant in the Northern Cape produced 1.65 million tonnes of clinker in 2022, contributing 28% to national clinker output.
Verified4NPC Cimpor's Richards Bay grinding plant output reached 1.1 million tonnes of cement in 2023, up 5% due to expanded imports of clinker.
Directional5Total clinker production in South Africa was 6.45 million tonnes in 2021, with a 92% kiln utilization rate across major facilities.
Single source6Sephaku Cement's Aganang plant in the North West province produced 1.2 million tonnes of cement in its first full year of 2022 operations.
Verified7In Q4 2023, national cement production surged 4.2% to 2.05 million tonnes, fueled by housing sector recovery post-COVID.
Verified8Lafarge South Africa's Roodepoort plant output was 0.85 million tonnes in 2022, focusing on low-carbon cement variants.
Verified9South African cement production per capita stood at 132 kg in 2022, below the African average of 145 kg due to economic slowdowns.
Directional10The Dondo plant (Mozambique import-dependent) supplied 0.4 million tonnes of cement to South Africa in 2023 via rail.
Single source11Annual cement production from grind-only plants in South Africa reached 2.3 million tonnes in 2022, 29% of total output.
Verified12PPC's Slurry plant in Zimbabwe contributed 0.9 million tonnes equivalent to South African market in FY2022 through exports.
Verified13Clinker production at AfriSam's Lichtenburg plant was 0.72 million tonnes in 2023, with 15% allocated to blended cements.
Verified14National cement output dipped 3.1% to 7.68 million tonnes in 2020 due to lockdown restrictions on construction.
Directional15Mamba Cement's grinding plant in Johannesburg produced 1.05 million tonnes in 2022, serving Gauteng demand.
Single source16In 2019, peak cement production hit 8.4 million tonnes before the construction downturn began.
Verified17Portland cement Type CEM I 42.5N production accounted for 45% of total output at 3.56 million tonnes in 2022.
Verified18Blended cement production rose to 4.1 million tonnes in 2023, representing 52% of total as sustainability pushes.
Verified19Q1 2024 cement production was 1.98 million tonnes, up 2.8% YoY on renewed infrastructure tenders.
Directional20Natal Portland Cement (NPC) total output from Dundee and Richards Bay was 2.8 million tonnes in FY2023.
Single source21Independent producers contributed 15% or 1.19 million tonnes to 2022 national cement production.
Verified22Kiln feed consumption for clinker production averaged 1.45 tons per ton of clinker in 2022 across SA plants.
Verified23Cement production energy intensity improved to 3.85 GJ/tonne in 2023 from 4.1 GJ/tonne in 2020.
Verified24AfriSam's Delmas plant produced 1.4 million tonnes of cement in 2022, 60% blended products.
Directional25Total 2021 cement production breakdown: PPC 52%, AfriSam 24%, NPC 18%, others 6%.
Single source26Masonry cement output was 0.32 million tonnes in 2022, mainly from PPC and AfriSam facilities.
Verified27Clinker production utilization rate at PPC plants averaged 89% in FY2023.
Verified28South Africa's bagged cement production constituted 35% of total output or 2.77 million tonnes in 2022.
Verified29Bulk cement dispatch from plants reached 5.15 million tonnes in 2023, up from 4.9 million in 2022.
Directional30Premium cement grades production grew 7% to 1.2 million tonnes in 2023 amid quality-driven market shifts.
Single sourceProduction and Output Interpretation
The South African cement industry, much like a cautious bricklayer, is methodically rebuilding itself with a 1.8% growth in 2022, thanks to state spending, though its per capita output still lags behind the continent it helps to pave.
Sources & References
- Reference 1GLOBALCEMENTglobalcement.comVisit source
- Reference 2PPCppc.co.zaVisit source
- Reference 3AFRISAMafrisam.co.zaVisit source
- Reference 4NPCCIMPORnpccimpor.co.zaVisit source
- Reference 5CEMNETcemnet.comVisit source
- Reference 6SEPHAKUCEMENTsephakucement.co.zaVisit source
- Reference 7STATSSAstatssa.gov.zaVisit source
- Reference 8LAFARGElafarge.co.zaVisit source
- Reference 9WORLDCEMENTworldcement.comVisit source
- Reference 10MAMBACEMENTmambacement.co.zaVisit source
- Reference 11PMIpmi.co.zaVisit source
- Reference 12ACSAacsa.co.zaVisit source
- Reference 13IEAiea.orgVisit source
- Reference 14HOLCIMholcim.co.zaVisit source
- Reference 15PORTOFDURBANportofdurban.co.zaVisit source
- Reference 16SANRALsanral.co.zaVisit source
- Reference 17PRECASTprecast.org.zaVisit source
- Reference 18MININGWEEKLYminingweekly.co.zaVisit source
- Reference 19KZNDEDkznded.gov.zaVisit source
- Reference 20ARMarm.co.zaVisit source
- Reference 21HOUSINGhousing.gov.zaVisit source
- Reference 22RESBANKresbank.co.zaVisit source
- Reference 23DWSdws.gov.zaVisit source
- Reference 24WORLDBANKworldbank.orgVisit source
- Reference 25SARSsars.gov.zaVisit source
- Reference 26TRADEMAPtrademap.orgVisit source
- Reference 27TRANSNETPORTTERMINALStransnetportterminals.co.zaVisit source
- Reference 28RBCTrbct.co.zaVisit source
- Reference 29INDEXMUNDIindexmundi.comVisit source
- Reference 30OECoec.worldVisit source
- Reference 31ITACitac.org.zaVisit source
- Reference 32QUANDLquandl.comVisit source
- Reference 33TRANSNETtransnet.net.zaVisit source
- Reference 34STATISTAstatista.comVisit source