Construction World June 2018

Hannes Meyer, AfriSam’s cementitious executive, and Richard Tomes, AfriSam’s sales and marketing executive.

The reality of SA in the global context Tomes says that South Africa has an installed capacity for cement production of 20 million tons. “Current demand is at around 13 million tons – this means that we have an oversupply of just over 30%. Our cement consumption is at a low 274 kg per person. If one takes an optimistic view and assumes that South Africa can make a significant recovery and achieve economic growth rates of 7,5% per annum (which has never been done before), then capacity and demand will start matching each other by 2020. “AfriSam’s Ulco plant (one of its three fully integrated plants) is located in an area where there are no other plants close by. From here it supplies the Free State, Northern Cape, Eastern Cape and Western Cape with cement. This is an area where AfriSam can com- pete well, but demand in these areas is unfortunately not sufficient, so we are forced to haul the product over long distances in order to achieve the desired capacity utilisation required to sustain the plant,” says AfriSam’s cementitious executive, Hannes Meyer. AfriSam’s logistics network, supported by Barloworld Logistics, cost efficiently transports cement from Ulco to the Cape Town area. Fortunately for AfriSam, it is a diversified business. “It does not only rely on cement – it has a good aggregate business which gener- ates good return relative to the cement business. It has a capacity to produce 10 million tons and is currently running at 80% of capacity,” says Tomes. He adds that the Western Cape is struggling to keep up with demand, due to rapid urbanisation. Unfortunately political factors and the ongoing drought there may inhibit growth. “We consume a large percentage of our own cement through our readymix business (of which there are 40 facilities nationally), and in turn we consume a large percentage of aggregate though our ready- mix business. We have a channel and a route-to-market in the form of our readymix business which can produce about 4 million cubic metres of concrete per annum,” says Tomes When conditions are more suitable, AfriSam aims to establish a cement plant in Saldanha Bay where it has an approved EIA to build a fully integrated cement plant.

shutters but also to colour and aggregate match as best as possible to the existing building. Where this had not been possible, the pro- fessional team opted for slightly more of a contrast in colour to cel- ebrate the repair work. To minimise waste and reinforce the concept of sustainability and using the ‘old’ to give life to the ‘new’, the old concrete and reinforcing bar were recycled into saleable products. More than a cement producer The Zeitz MOCAA is now a cultural institution that focuses on collecting, preserving, researching, and exhibiting cutting edge con- temporary art from Africa and its Diaspora. Richard Tomes, AfriSam’s sales and marketing executive, says that the company is much more than merely a producer of cement, concrete and aggregate products and related services. “We are the brand that helps create spaces that foster life, relationships, stories and growth. At AfriSam, we are about creating concrete possibilities. “Making a difference extends far beyond AfriSam’s products and what these products can create,” Tomes says. “The ethos of creating concrete possibilities is deeply entrenched in the company’s philos- ophy and values, and this is underpinned by many of the company’s business practices which clearly demonstrate our commitment to a lasting legacy.” 

AfriSam designed and supplied specialised readymix for the Zeitz MOCAA.

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CONSTRUCTION WORLD JUNE 2018

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