R/€ = 13.15
R/$ = 11.72
Au 1213.80 $/oz
Pt 1189.50 $/oz
Feb 22, 2008
AltX-listed firm studies Eastern Cape wind power optionsBack
© Reuse this AltX-listed flooring and chemicals company Safic has taken a proactive stance in light of South Africa's power crisis and is studying the feasibility of building a wind turbine power station at its East London plant, which could become the third such facility in the country.
CEO Fred Platt told Engineering News Online on Friday that the company would have the results of the study within "the next couple of weeks", and hoped to start the project "as soon as possible".
"Sustainable energy is part of our strategy going forward," he said in an interview in Johannesburg, adding that the company understood its energy responsibilities.
He pointed out that East London - located along the same stretch of coastline as the "windy city", Port Elizabeth - was in an area that had the potential to harvest wind resources for electricity generation.
Currently, there were two other wind turbine projects in South Africa.
These comprised State-owned Eskom's 3,2 MW Klipheuwel wind farm located in the Western Cape, and the 5,2-MW privately owned wind farm at nearby Darling, which was set for first power generation this month.
The State-owned company also had plans to build another wind farm that could have a capacity of between 100 MW and 200 MW.
Eskom has run out of excess power capacity, which led to areas around the country suffering from load shedding late last year and in January this year.
The situation deteriorated to such an extent that the power parastatal even told mining companies on January 24 that it could not guarantee them power, leading to South Africa's biggest mines closing for days.
Since then, it had asked the entire country to reduce its power consumption by one-tenth, in a bid to stabilise the grid before the high-consumption winter months arrived.
Platt could not provide details as to the potential size of the plant or the cost, but said that these would emerge after the feasibility study had been completed.
Meanwhile, Safic had over 2007 been optimising its business to grow revenue and margins, but now it had entered a new phase of growth, which meant acquisitions were on the horizon.
It concluded late last year the acquisition of Centurion Glass & Aluminium, the manufacturer and installer of architectural aluminium sections, and glass facades of window doors, for R75-million.
Platt said that the firm would not stop there, and was hoping to finalise yet another buy in late 2008.
"We have identified a number of potential companies."
EARNINGS UP 50%
Safic also reported on Friday that attributable headline earnings for the half-year ended December had increased by 50% to R7,8-million compared with the same period in 2006, translating to a 18% rise in headline earnings a share.
Revenue was up 11% year-on-year to R122-million, with a gross profit of R66-million, Safic said in an emailed statement.
The company said that these results indicated that the South African economy was still buoyant, albeit slower than the previous six months.
"Although the macroindicators have changed dramatically, we continue to see strong demand for the group's flooring, glass and aluminium and maintenance products," said Platt. "We expect this level of demand to be maintained, or even increase, over the next six months."
Safic manufactures and distributes chemical cleaning and flooring products and provides services to the infrastructure sector.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Construction News
Updated 29 minutes ago JSE-listed real estate investment trust Dipula Income Fund has entered into agreements to acquire the Umzimkhulu Shopping Centre, in KwaZulu-Natal, as well as the Corporate Industrial Park, in Polokwane, from two different vendors for R336-million. The industrial...
Updated 3 hours ago State-owned electricity utility Eskom announced that first power was produced at 11:03 on Monday March 2, 2015, from Medupi Unit 6, marking a major milestone for the coal-fired power station project, which has been plagued by delays and cost overruns associated with...
Updated 33 minutes ago The Department of Economic Development, together with Spanish solar company Abengoa and the Industrial Development Corporation on Monday launched a 100 MW concentrated solar power (CSP) park, about 60 km outside Pofadder, in the Northern Cape. Speaking to journalists...
Updated 42 minutes ago South Africa could face another delay in its already years-delayed digital migration project if government adopted the much-disputed conditional access (CA) for the set-top boxes (STBs) required to intercept digital broadcasting frequencies. Emerging black-owned...
Updated 42 minutes ago JSE-listed real estate investment trust Dipula Income Fund has entered into agreements to acquire the Umzimkhulu Shopping Centre, in KwaZulu-Natal, as well as the Corporate Industrial Park, in Polokwane, from two different vendors for R336-million. The industrial...
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
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.
This Week's Magazine
Updated 6 hours ago Subscribe to Engineering News and Mining Weekly for two years, but only pay for the first year. The weekly editions of Engineering News and Mining Weekly will be posted to your preferred postal address and also gain access to:
National flag carrier South African Airways (SAA) is in an advanced stage of renegotiating its deal with European airliner manufacturer Airbus to acquire A320 single-aisle (or narrow body) aircraft. The aim is to replace ten of the aircraft still on order with five...
Worldwide, the main thrust in the ports industry over the past decade or more has been to increase efficiency. Traditionally, ports have been run by engineers and mariners and, in the past, increasing a port’s capacity was achieved by expanding the harbour. “That has...
What do you do when an elephant has a toothache? You call Dr Gerhard Steenkamp from the University of Pretoria’s (UP’s) faculty of veterinary science, Onderstepoort, one of only two elephant ‘dentists’ in the world.
The 2015 Sanlam/Business Partners Entrepreneur of the Year (EOY) competition was launched earlier this month in Johannesburg, with the main focus on creating and inspiring entrepreneurs to create jobs and boost the economy.