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'.

South African cement maker PPC looks north to opportunities in Africa, even as more competition prepares to pile into the local market

Competition in southern Africa’s cement market is heating up even as sales remain distinctly cool in the face of renewed global financial turmoil.

Rebound in smaller infrastructure projects much less lucrative than works for the Soccer World Cup sees PPC declare an interim dividend of 35c for the half-year

PPC has advised that its earnings per share and headline earnings per share for the 6 months ended March 2011 are expected to be between 35% and 40% lower.

The government’s poor investment in infrastructure is hurting the construction sector, and analysts warn that further delays in spending will frustrate job creation across the economy.

PPC says it will withdraw an environmental application for its Western Cape capacity expansion programme in light of low cement demand and poor economic conditions.

PPC CEO Paul Stuiver says that the group is concerned about the outlook for cement demand in the second half amid an uncertain economic recovery.

PPC expects regional demand to pick up, but more expensive fuel and electricity will affect input costs.