Government Infrastructure Spending and Low-cost Housing Development to Spur Demand for Cement in South Africa, Says Frost & Sullivan

CAPE TOWN, South Africa, May 13, 2010 - Increased infrastructural spending by the government, numerous planned
projects by public corporations, low-cost housing projects, and the revival
of residential building construction are factors that are likely to spur the
demand for cement in South Africa over the next few years.

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New analysis from Frost & Sullivan
(www.industrialautomation.frost.com), Production and Investment
Analysis of the South African Cement Industry, finds that the total demand
for cement in South Africa was 14.9 million tons in 2008 and estimates this
to reach 23.1 million tons in 2015. The markets segments covered in this
research service are mining, civil construction, independent blenders,
concrete product manufacturers, ready-mix producers, and building
construction.

If you are interested in more information on this study, please send an
e-mail to Patrick Cairns, Corporate Communications, at
patrick.cairns@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.

"The residential building construction sector is the largest user of
cement in South Africa, accounting for approximately 50.0 per cent of
consumption each year," says Frost & Sullivan Industry Analyst Litiya
Matakala. "The development of low-cost housing over the period 2010 to 2015
is expected to be the single largest demand driver for the cement industry in
South Africa."

The government plans to deliver an estimated 630,000 housing units per
annum between 2010 and 2015, assuring cement suppliers a high and steady
demand for cement.

The rising energy costs are, however, a major challenge for South African
cement manufacturers. Energy costs account for a significant portion of the
total costs of producing and distributing cement. Hence, the operating
margins of cement producers are coming under more pressure, with the costs of
diesel, coal, and electricity increasing.

"The cost of energy is likely to remain a key challenge for cement
producers over the period 2010 to 2015 due to the planned electricity tariff
hikes by the state power producer Eskom, and the spiralling cost and demand
for steam coal, as the global economy recovers from the downturn," explains
Matakala.

Production and Investment Analysis of the South African Cement Industry
is part of the Industrial Automation & Process Control Growth Partnership
Services programme, which also includes research in the following markets:
South African Low Voltage Circuit Breakers Market, Expenditure Analysis of
the South African Gold Mining Industry, South African Field Instrumentation
Market, and South African AC Drives Market All research services included in
subscriptions provide detailed market opportunities and industry trends that
have been evaluated following extensive interviews with market participants.

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    Production and Investment Analysis of the South African Cement Industry

    M526

    Contact:
    Patrick Cairns
    Corporate Communications - Africa
    P: +27-18-464-2402
    E: patrick.cairns@frost.com

www.frost.com

Patrick Cairns, Corporate Communications - Africa of Frost & Sullivan, +27-18-464-2402. patrick.cairns at frost.com