The merger between South Africa's two largest cement producers, PPC and AfriSam - if it goes ahead - would give the combined group better buying power from its suppliers and improved reach across the country, according to AfriSam's acting CEO. Rob Wessels said a reduction in overheads at senior management level would "probably" be looked at, and any overlaps at head offices as well, but he did not see anything changing at plant level. He said the combined footprint of PPC and AfriSam across the country would provide the joint group with a better route to market for its products. On the way back from a site visit to AfriSam's Ulco plant, situated about 80km from Kimberley, Wessels said on Tuesday that the plant was well placed to service the Northern Cape, Free State and the Eastern Cape. The plant has the capacity to produce 1.25 million tons of cement a year. But overall cement demand is weak. In South Africa in 2007, before the global financial crisis, cement capacity was at 15 m...
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