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AECI acquires Much Asphalt for R2.27bn

10th November 2017

By: Anine Kilian

Contributing Editor Online

     

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JSE-listed AECI will acquire South African asphalt producer Much Asphalt for R2.27-billion.

“Much Asphalt has a market-leading position, with long-established customer relationships, a robust order book and project pipeline, and a highly experienced management team,” AECI said in a statement last week.

Much Asphalt will operate as a standalone entity in the AECI group.

It has 17 static plants, four mobile asphalt plants, three static emulsion/modified binder facilities and a bitumen converter across South Africa.

It also has one static asphalt plant in Namibia and employs more than 500 people and its production capacity represents over 50% of South Africa’s installed asphalt capacity.

“Spend on roads in South Africa has increased at a compound annual growth rate of 12.7% over the past six years, evidence of government’s commitment to infrastructure development,” AECI CEO Mark Dytor said.

As set out in the 2017 budget review, government and State-owned companies plan to spend R327.7-billion on transport and logistics over the medium term.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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