http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.22Change: -0.23
R/$ = 11.16Change: -0.09
Au 1240.10 $/ozChange: -4.17
Pt 1243.50 $/ozChange: -18.70
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 05, 2011

Afrox not receiving bulk volume allocation from refineries

Back
Afrox MD Tjaart Kruger discusses the Highveld supply agreement.
Pretoria|Wadeville|African Oxygen (Afrox) MD Tjaart Kruger|Afrox|Evraz Highveld Steel|Industrial|Welding|Highveld Plant|Liquefied Petroleum Gas|Products|Steel|Kruger
|Afrox|Industrial|Welding||Products|Steel|
pretoria|wadeville|african-oxygen-afrox-md-tjaart-kruger|afrox|evraz-highveld-steel|industrial|welding|highveld-plant|liquefied-petroleum-gas|products|steel|kruger
© Reuse this



Industrial gases and welding products group African Oxygen (Afrox) MD Tjaart Kruger says that the company has not received its bulk volume allocation from refineries, which is causing problems for it, especially with liquefied petroleum gas (LPG).

“We are concerned about the refineries’ capabilities going forward. We must establish a better supply chain in LPG, which will include importation in the next year or two,” Kruger said at the Afrox interim results presentation for the six months ended June 30.

He added that, although the company has made good progress, cost and price management and plant reliability will remain challenges going forward.

“We have made huge strides in managing our costs but they will remain a focus area going forward in an economy that has labour inflation of over 10%.”

On price management, he added that the company was comfortable with its competence in managing pricing but warned that the fragile economy was not going to save the company – it needed to save itself.

“I do not believe that for the rest of the year, we are going to see huge growth. July is going to be a disaster for most companies in view of the strikes we have had. We have to manage those issues and get through them as an economy, which puts a damper on expectations for the second half of the year,” said Kruger.

Afrox also announced that it had been unsuccessful in the renewal of the Highveld supply agreement, which had led to an impairment of the R152-million assets associated with its Highveld plant.

Evraz Highveld Steel & Vana-dium’s decision not to renew a gas supply contract followed Highveld initiating arbitration against Afrox last year, because it lost a “substantial volume of tons” of steel and vanadium because of gas supply disruptions.

Kruger pointed out that capacity at its Pretoria and Wadeville plants would be increased to fill the gap of supplying gas to the merchant market if the Highveld plant was closed.

“We will have enough products for at least three years. The argon will be procured from other sources. “It is embarrassing for us to have lost that contract. It is not something that we planned, but that is not the end of Afrox,”

He noted that the tonnage business was important from an integration point of view, but relatively small if one looked at the numbers.

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Video News
More
 
 
Latest News
The Cape Town International Convention Centre (CTICC) has outperformed its targets over the past financial year and contributed R3.1-billion to the gross domestic product in the 2013/14 financial year. CTICC CEO Julie-May Ellingson said the convention centre had been...
Public Enterprises Minister Lynne Brown
Public Enterprises Minister Lynne Brown has released details of the remuneration of the chairpersons and nonexecutive directors of the various State-owned company boards falling under her Ministry. The remuneration figures, which are attached, are based on figures...
Installed wind power capacity could swell by 530% to 2,000 gigawatts (GW) by 2030, supplying up to 19% of global electricity, a report from a trade association and Greenpeace said on Tuesday. It said installed wind energy capacity totalled 318 GW at the end of last...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks