PPC, the JSE-listed cement and building materials producer, has announced a restructuring of its senior management team following the sale of its 51% stake in Cimerwa, a Rwandan subsidiary, for R804 million ($42.5 million).
- Njombo Lekula, the Managing Director of PPC South Africa and Botswana, has resigned after over 30 years with the company. The positions of Group CEO and MD of South Africa and Botswana will be merged.
- Roland van Wijnen, the current CEO of PPC, who previously decided not to renew his contract, will be leaving the company at the end of December. He will be replaced by Matias Cardarelli, pending the issuance of a work permit.
- PPC’s expansion strategy into Africa, which aimed to generate 40% of revenue from outside South Africa, led to investments in plants in the Democratic Republic of Congo, Ethiopia, and Rwanda. However, liquidity issues and a refocus on southern African operations prompted the sale of the Rwanda business.
- The sale of Cimerwa will result in PPC becoming virtually debt-free, providing opportunities for future growth in its core cement market and other areas.
- PPC’s chair, Phillip Moleketi, highlighted the need to address challenges and improve performance in certain markets, with a focus on revenue, profits, and earnings.
- The company is also dealing with the impact of cement imports and the macroeconomic environment, which have affected demand in South Africa and Botswana.