Body cements closure
ONE INDUSTRY WATCHDOG SHUTS TO MAKE WAY FOR ANOTHER Challenges facing construction industry made it unaffordable.
Cement and Concrete SA (CCSA), an organisation initially established 86 years ago as the Concrete Association of South Africa, has closed its doors after the four major domestic cement producers withdrew their funding.
Quantum Readymix Concrete managing director Calvin Billett said the closure is a sad day for South Africa because it effectively closes the door of an industry watchdog that was impartial and ensured that standards were maintained.
Billett said the whole of South African society will undoubtedly be the losers as, among many other negatives, there will be more structural failures in the country.
However, it has emerged that important industry players are in discussions to establish a new industry body that will specifically address the key challenges which have persistently impacted the cement industry, including the imported dumping of cement.
This role was previously performed by CCSA and its predecessors.
It is unclear why the CCSA is being closed down only for a new industry body to be established.
A statement issued about the CCSA’s closure said the reason for taking this step is that the cost of running the organisation has become unaffordable in the wake of the broader construction industry facing challenges for several years due to a significant reduction in infrastructure investment in SA.
The statement added a final attempt was made in March 2021 to strengthen the various industry bodies within the sector by consolidating what was then known as the Concrete Institute (TCI) with the Concrete Society of Southern Africa (CCSA) and the Association of Cementitious Material Producers (ACMP) into what became known as Cement and Concrete SA.
“Having consolidated the industry bodies after the Covid pandemic in 2020, it was anticipated that running CCSA would be much more affordable.
“The unforeseen and continued lack of investment in infrastructure in our country unfortunately put further strain on the cement industry, hence the decision to wind down CCSA with effect from 1 April,” it said.
CCSA chief executive Bryan Perrie said the four major cement producers in South Africa – PPC, Afrisam, Sephaku Cement and Lafarge/Afrimat – effectively took the decision to close the CCSA but he was not party to this decision.
Perrie said the CCSA closed on 1 April but referred a question on what ultimately caused the closure of the organisation to the four cement producers who funded the CCSA.
“They provided the bulk of the funding,” he said.
“We did have individual membership and some corporate memberships, which brought in a small amount, but [by] far the biggest chunk – the difference between our income and expenditure – was funded by the four producers equally.”
Perrie said 16 employees at the CCSA will be retrenched as a result of the decision.
PPC CEO Matias Cardarelli confirmed that his company, along with other major cement producers, will exit CCSA.
Cardarelli said this decision was made after thoughtful consideration of various factors, including changes in the industry landscape and the evolving needs of the sector.
He said key players in the industry are in discussions to establish a new industry body that will specifically address the key challenges that have persistently impacted the cement industry.
Lack of investment in infrastructure put strain on industry