Register for important updates:


Cement industry shake-up looms


10 December 2012

The cement industry will have greater competition from the end of next year when new entrant Sephaku starts production, CEO Pieter Fourie said last week.

Sephaku is working with Sinoma, a Chinese company with cement plant building experience. The company will be the first new entrant to the local cement production market since 1934.

Sephaku is also building a cement mill near Delmas, in Mpumalanga. “We look like we will produce 2.5-million tons a year from the end of next year,” Mr Fourie said.

Sephaku is largely funded by Nigerian partner Dangote Cement, which has pumped in money for new technology.

“Our plant will be more advanced than the old plants, some of them up to 50 years old, that other cement makers have in South Africa,” Mr Fourie said.

Sephaku has contracted 800 Chinese experts and employed 400 South African workers to build the plant. It has been criticised for not using more locals.
“The use of Chinese staff is due to their skills,” Mr Fourie said. “Sinoma has built more than 200 cement plants globally.
There are only three global suppliers of cement plants: one German, one Danish and Sinoma.

“When we initially negotiated the contract, we asked South African contractors to quote as well, in partnership with European suppliers.”

Mr Fourie said South African contractors were unable to quote a fixed price for the building contract.

Sinoma, on the other hand, committed to a fixed price.

Further, an audit showed that skills needed for the project were not available locally.

Alistair Anderson:
Published on BusinessDay December 10 2012

Full Financial Analysis


Bodibeng Trading Proprietary Limited

Founded by Mr Gaopalelwe Olebogeng from the Verdwaal Village in the North West province who is the sole managing member of Bodibeng Trading Proprietary Limited. Mr Gaopalelwe has previous experience in plant cleaning that he acquired during his tenure as a plant cleaner at another cement company in Lichtenburg. Bodibeng Trading Proprietary Limited employs 36 employees from the local community and currently has a short-term contract with SepCem which includes mentorship to ensure that it effectively provides the plant cleaning services at Aganang.


Mancamane Trading Enterprise

Mancamane is a black female-owned enterprise that started operating in 2010 as a plant cleaning, construction and mining supply company. Ms Daisy Maseko, a renowned entrepreneur, founded the enterprise in the Delmas area, Mpumalanga province and currently employs 28 permanent staff. SepCem adopted Mancamane into the enterprise development programme in 2014. The company is currently supplying plant cleaning services to the Delmas grinding plant and has demonstrated the ability to grow sustainably.


MM&JK Cleaning Projects Proprietary Limited

In 2014, SepCem contracted the cleaning services of MM&JK Cleaning Projects, an enterprise established in 2013 by Mr Sipho Mazibuko from a village called Springbokpan in the North West province. SepCem identified MM&JK Cleaning Projects as a well-managed enterprise that is appropriately suited to benefit from the programme. In the case of MM&JK, SepCem has partnered with another major industrial organisation to mentor Sipho.

The partner’s role is to assist MM&JK Cleaning Projects with inproving its cleaning skills through training, providing cleaning equipment and required detergents. SepCem’s role is to develop Sipho’s business management skills including cost management, record keeping and negotiation. SepCem is assisting MM&JK to develop a marketing strategy to increase its customer base to reduce the single-customer dependency risk and ensure that the company is sustainable. MM&JK Cleaning Projects currently has a three-year contract with SepCem for general cleaning at Aganang and employs 14 permanent staff.



Millicent’s Enterprise

Millicent’s Enterprise is 100% black female-owned and was founded by Ms Millicent Mahlabe, an entrepreneur from Delmas in the Mpumalanga province. The company was selected for the programme because it has historically demonstrated the ability to supply large contracts but lacks administration skills. Millicent’s has a good reputation and positive track record of being able to cater for large provincial government events.

SepCem secured Millicent’s catering services in 2013 for its canteen at the Delmas plant that provides meals to 150 employees. Millicent’s currently has seven permanent employees and several contract employees who are sourced as and when required.