Thursday, October 12, 2006

Cement holds building hostage

Johannesburg - South Africa’s massive infrastructure development plans, which include the Gautrain rapid rail link and the refurbishment of stadiums for the soccer World Cup in 2010, will be held hostage by cement imports as local manufacturers struggle to keep up with demand.

Cement producers Natal Portland Cement, Pretoria Portland Cement (PPC) and Lafarge are spending billions to boost plant capacity after being caught napping by faster-than-expected economic growth and a surge in housing and commercial property developments.

These expansion plans are only due to be completed in 2008 and, until then, manufacturers are having to import cement products to meet local demand. Because of high transport costs and the weakening rand, these imports are often sold at a loss. Business Report

With this in mind - InternAfrica realises that cement sold for a loss, certainly won’t go to developing low-income housing, and it is clear now that other forms of construction are now essential.

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