PPC restructures senior management following sale of Rwanda business for R804m

The impending finalisation of the sale of PPC’s 51% interest in Cimerwa in Rwanda, one of the remaining assets from its unsuccessful strategy to expand into Africa, has led to a restructuring of the senior management of the JSE-listed cement and building materials producer.

The company reported on Monday that PPC South Africa and Botswana MD Njombo Lekula has resigned effective from the end of December after more than 30 years with the group, and his position will not be filled.

Outgoing PPC CEO Roland van Wijnen said the executive committee had an internal discussion in April during which it became obvious that, with the refocus of the group on southern Africa and when Cimerwa was sold, the group CEO position was no longer a full-time job and it must start making the organisation simpler by merging the positions of the group CEO and MD of South Africa and Botswana.

Van Wijnen – who the company previously confirmed had decided not to renew his contract – will be leaving PPC at the end of December and has been replaced by Matias Cardarelli.

Africa expansion

In 2012, PPC embarked on a strategy to expand into the rest of Africa, aiming to generate 40% of its revenue from outside South Africa by 2017.

This strategy resulted in PPC investing in plants in the Democratic Republic of Congo (DRC), Ethiopia and Rwanda, but significant liquidity problems put severe pressure on its South African balance sheet and led to a restructuring of these investments and a refocus on its southern African operations. – moneyweb.co.za