The cement industry may be expecting an end to the construction sector’s downturn, but the ability of Afrisam, its second-biggest producer, to continue operating is 'under threat'.
Competition in southern Africa’s cement market is heating up even as sales remain distinctly cool in the face of renewed global financial turmoil.
Cement producer Lafarge South Africa has reported an uptick in daily sales however the group noted that it expected 2011 volumes to be similar to 2010
Lafarge SA says that it expects the cement industry to recover in the second half of 2011, says CEO.
Holcim says net profit plunged 80% during the first quarter, hit by a decline in business from Europe and North America.
Cement sales in January in southern Africa were down 4.7% year-on-year to 935,913 tons from 982,424 tons at the same time a year ago, data from the Cement and Concrete Institute showed on Tuesday.
The institute noted that January 2009 had one less sales day than January 2008.
"If the decrease in sales days is taken into account, total regional sales were only 0.2% lower than January 2008," it said.
Regional sales are down 4.7% at 935,913 million tons on a year-to-date basis in 2009.
The moving annual total in southern Africa was down 4.0% year-on-year in January to 14.7 million tons.
Exports to other countries excluding Swaziland, Botswana, Lesotho and Namibia rose by 376.5% to 31,986 tons – up 376.5% on a year-to-date basis.
Switzerland's Holcim says it will cut some 3,300 jobs as it seeks to deal with the global economic crisis.
Swiss group Holcim said it had increased its stake in Chinese company Huaxin Cement to 39.9% from 26.1% for $282m

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