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Production commences at Sephaku Cement’s Delmas plant

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Sephaku Holdings Limited announced on Wednesday that Sephaku Cement has begun commercial production at its Delmas milling plant.

Sephaku Cement (SepCem), an associate company of Sephaku Holdings , is currently developing a cement production facility at Aganang in the North West Province as well as the grinding facility at Delmas in Mpumalanga.

Aganang is expected to commence production in the second quarter of 2014 while the Delmas plant, which commenced production on 6 January 2014, is expected to be ramped up to an annualised 1.4 million tonnes per annum by the middle of the year.

“This has been a nine-year journey and we are pleased to finally have our cement brand in the market. We are proud of SepCem’s highly experienced operational team for attaining this key milestone in being the latest entrant into the South African cement industry since 1934,” said Sephaku Holdings chief executive officer, Lelau Mohuba.

“This is a demonstration of not only the extensive skills and experience of our management to bring the projects to account, but the determination in establishing SepCem as a key player in the industry. The commissioning phase has started at SepCem’s other major project, Aganang, an integrated plant located in Lichtenburg, North West province of South Africa which is on target for production by the second quarter of 2014.”

Sephaku Holdings owns 36 per cent of SepCem while the remaining 64 per cent is owned by Africa’s largest cement producer, Dangote Cement.

By Nicole Cassandra Naidoo

Full Financial Analysis

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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.

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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.

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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.

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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.

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