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China invests R1.65m into SA's cement industry

Women Investment Portfolio Holdings Limited (Wiphold), an investment and operating company owned and managed by black women, and Continental Cement (Conticem), a South African limestone mining company, will begin a joint venture with China's Jidong Development Group and the China-Africa Development Fund (CADFund) to construct
 2,500 tons of Ordinary Portland Cement will be produced..
 
 
Women Investment Portfolio Holdings Limited (Wiphold), an investment and operating company owned and managed by black women, and Continental Cement (Conticem), a South African limestone mining company, will begin a joint venture with China's Jidong Development Group and the China-Africa Development Fund (CADFund) to construct a R1.65 billion cement plant in Limpopo.

In a statement, Wiphold said: “This represents a significant foreign direct investment into the South African cement industry, with an inflow of more than R800 million foreign direct investment from China, of which 45 percent will be equity investment, with the remaining 55 percent in the form of commercial debt.”

Jidong Development Group and the CADFund will be the majority shareholder with 51 percent, while Wiphold will hold 23.9 percent, with the remaining 25.1 percent held by Conticem in the joint venture.

“The project, which will inject at least R1.65 billion of investment into the South African economy over the next two years, will significantly increase South Africa's cement production capacity, while also contributing to economic activity and job creation in Limpopo, one of the poorest provinces in the country," said Gloria Serobe, Chief Executive of Wipcapital, a financial services subsidiary of Wiphold.

Jidong will both build and operate the plant.Jidong Chairman, Zhang Zengguang, said: “We have significant experience in the developed and highly competitive Asian markets, where we have built plants that have added substantial capacity to the Asian cement industry. We are pleased that we will be able to transfer our knowledge, skills, best practices and efficiencies to South Africa.”

According to Conticem CEO, Anton Weavind, Conticem's substantial limestone deposit in the vicinity of the plant will allow further expansion later.

“We have almost 81 million tons of proven and probable reserves of cement grade limestone, and a further 120 million tons of resources. This means that we have sufficient resources to substantially increase capacity in the future,” Weavind said.
 
Edited by Chris Farnell
 
Links: www.wiphold.com, www.jdsn.com, www.cadfund.com


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