Register

Register for important updates:

Close

Sephaku; SA’s M&A activity

cement-silos

SEPHAKU, the newest big entrant to the Southern African cement markets since the 1930s, will present its interim results for the six months to September later this month.

It has signed up significant domestic debt funding for its R3.4bn cement plant and grinding facility project across two provinces.

In a press release last month it said its state of the art cement milling plant in Delmas, Mpumalanga, was powering up. An Eskom substation at the plant has been switched on, and the facility’s primary electrical room is connected. Power distribution to the entire plant, down to the level of equipment, will be done this month and next. But when actual production of cement will start, still needs to be clarified.

Sephaku Cement was established in 2006. It is an associate company of Sephaku Holdings, which listed on the JSE in 2009. Sephaku Cement is a 64%-owned subsidiary of Dangote Cement Plc, Nigeria’s largest cement manufacturer. At 10-million tonnes a year, its Obajana plant in Nigeria’s Kogi state is the largest producer in sub-Saharan Africa — almost big enough to provide South Africa’s current 12-million tonnes a year demand.

Dangote Cement’s website says it is investing more than $4bn into expanding its production and import capacity to about 50-million tonnes a year by the end of 2015.

South Africa has plenty of spare cement capacity at present, but the promise of trillions of rand of infrastructure spend both in South Africa and the Southern African Development Community is driving the industry.

BDLive, November 08 2013
Click here to view the original article.

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.

catering1
×

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.

cleaning1
×

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.

cleaning2

×

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.

catering1
×
Top