Afrimat’s Post

In the news: Afrimat today released the findings of Afrimat Construction Index (ACI) for the first quarter of 2024. Our CEO Andries Van Heerden, said that while the construction sector has remained relatively weak, the recent results achieved by the Group itself were outstanding thanks to the team’s collective efforts. “These results, the highest in the Group’s history, were underpinned by focus on cash generation, strict capital allocation, and maintaining a strong balance sheet, which continues to support diversification. The Bulk Commodities segment was responsible for the bulk of the profitability, although the Construction Materials division also increased revenue due to increased demand from the road and rail industries.” https://lnkd.in/d7KeZ537 #Construction #ConstructionSector #SouthAfrica #EconomicGrowth

The Building and associated materials Industry is a sector that thrives in infrastructure and other types of constructions. Between 2020 and June 2024, Chilanga Cement Plc's share price has seen significant growth rising from K2 to K17. The surge in price between Jan-June 2021 may be attributed to the 75% Equity sale by Lafarge to Huaxin cement subsequently becoming Majority shareholders in the firm. In regards to price-earning ratios, the construction firm has recorded low ratios between 1-7.2 during the period under review. This means an Investor is willing to purchase K1-K7 for each unit of company earnings and is a key metric for both businesses and investors in tracking which stocks are under or over-valued. In comparison to Dangote cement, a competing firm in the same industry, the price- earning ratio from 2020-2023 has been in the range of 8-10 highlighting the possibility of overvaluation. Strong financial performance can be attributed to the increase in Infrastructure projects country-wide such as toll plazas and the Ndola-Lusaka dual carriage-way. Operating profit from core business activities has risen from K269.7million to K644.3 million, whilst profit after tax rose from K363 million to K447.4 million. Data sources: Chilanga Cement Plc Dangote Cement Plc african | markets

Africa’s booming construction sector is attracting major Chinese cement manufacturers, paving the way for accelerated infrastructure development. As these players expand their presence, questions arise about the impact on local industries and long-term sustainability. Discover more: #AfricanBusiness #InfrastructureDevelopment #TradeInAfrica #SustainableGrowth #AfricaRising

Holcim signs agreement to sell its Nigerian business Holcim, the world’s largest building materials company, has entered into an agreement with Chinese industry giant Huaxin Cement to sell its 83.81% stake in Lafarge #Africa, based in Lagos, #Nigeria, for an equity value of $1 billion on a 100% basis. The transaction, subject to customary and regulatory approvals, is expected to close in 2025. Lafarge Africa operates four plants across Nigeria, located in Sagamu and Ewekoro in Ogun State, Ashaka in Gombe State, and Mfamosing in Cross River State, with a combined cement production capacity of 10.5 million tonnes annually. The company also offers a comprehensive range of high-quality mortar products, including TectorPlast I (ready-to-use plastering mortar) and Tector Plast II (waterproof mortar), alongside solutions for floor screed, floor tiling, wall screed, and wall tiling, including support for heavy materials like marble tiles. https://lnkd.in/emfndppc #BuildingMaterials #SustainableConstruction #InfrastructureDevelopment #CircularEconomy #GlobalBusiness #ConstructionIndustry #BuildingMaterials

When it comes to “emerging” regions in the global cement industry, Africa stands out as one of the leading options. This is not surprising, considering that the African continent is the youngest in the world, with a population that, according to UN forecasts, will reach 2.5 billion people by 2050, which would represent approximately one in four inhabitants of the planet. This demographic increase of one billion people compared to the current figure will drive a rapid process of urbanization. To meet this growing demand, cement production capacity, which is currently around 350 million tons per year in Africa, will have to be increased considerably. To check out this article, please visit our website 👇 https://lnkd.in/eCSVVSRC

As China's real estate market declines, cement manufacturers are seeking new opportunities abroad. One company is strategically expanding into Africa to meet the country's rising infrastructure demands. https://lnkd.in/d6ZyBwPd

The global bitumen market is gaining traction, reached $104 billion in 2022 and projected to grow at a steady 5% CAGR. This surge is driven by factors like: - Increased demand for PMB in construction - Global road construction boom - Growing need for bitumen in roofing #AICL #Bitumen #BitumenIndia #infrastruture #construction #growth

Did you know… King Price’s engineering division has recalibrated to meet the needs of smaller construction contractors and project owners. It has implemented a ‘back to basics’ approach that empowers these businesses to tailor insurance policies that address their unique risk profiles. Because we know it’s tough out there. Because we’ll always look out for the ‘small guys’. Because we care about you and your business, no matter what you build, make, provide, or do. However, this doesn’t mean that we don’t still see the bigger picture. George Parrott, who heads up engineering for us, chatted recently with Engineering and Mining Africa Magazine about the possible impacts that cheap cement imports will have on the industry and the economy over the medium term. And, despite never having given it a moment’s thought before now, I found it really interesting to see the potential that these imports have to kick-start growth in the smaller infrastructure sector by promoting accessibility and affordability. Projects that were previously stalled due to financial constraints or deemed financially unfeasible can now move forward, contributing to job creation, national development, and economic stimulation. However, the flip side is there will likely be job and GDP losses as the local cement manufacturing industry is impacted over time. You can check the article out here: https://lnkd.in/d2ncb3_D It’s a concrete outline of the pros and cons. #DadJokeAlert #SorryNotSorry

👉Rio Tinto Invests $165 Million in Quebec Smelter Refurbishment👈 Rio Tinto will invest $165 million to refurbish its Grande-Baie smelter in Quebec. The project involves rebuilding two anode baking furnaces, replacing their concrete shells and refractory linings, from 2025 to 2026. Additionally, feasibility studies will explore replacing scrubbers and overhead bridge cranes at the anode production center. These upgrades aim to ensure a reliable anode supply for the Grande-Baie and Laterrière plants for decades. To mitigate carbon emissions, Rio Tinto will initiate environmental efforts, including tree planting near the smelter. Martin Lavoie, director of operations at Grande-Baie and Laterrière, highlighted that this investment would support sustainable and competitive aluminium production while providing significant economic benefits. Rio Tinto's investment in the Grande-Baie smelter highlights a strategic move to enhance the longevity and competitiveness of its aluminium production capabilities. By refurbishing critical infrastructure and planning for future upgrades, the company aims to maintain a reliable anode supply essential for its operations. The inclusion of environmental initiatives reflects a commitment to sustainability, addressing potential carbon footprint concerns. This investment not only secures Rio Tinto's position in the market but also promises economic benefits for the Quebec region, reinforcing the importance of aligning industrial advancements with environmental responsibility. https://lnkd.in/ggj6TSM7