Jun 29, 2012
Cisco sale at an 'advanced' stageBack
Construction|Natal|Africa|Cisco|Housing|Murray|Africa|Newcastle Mill|Construction|Prospective Buyer|Steel|Steel Mill|Steel Rolling Mill|Western Cape|Henry Laas|Reinforcing
© Reuse this
The identity of the buyer was not disclosed, nor was the precise composition of the assets that would be sold, with M&R also housing a reinforcing bar (rebar) distribution network.
CE Henry Laas said on Friday that the group was unlikely to meet its second internal target for completing the noncore disposal, which had been set for June 30. The JSE-listed group initially set the target for closing out the sale as the end of 2011.
In late 2010, M&R indicated that it was planning to dispose of Cisco as a priority, having earlier initiated a programme to close or dispose of its underperforming assets.
Cisco is an electric arc furnace melt shop and reinforcing steel rolling mill and the curtailment of production from the facility, together with the failure of a furnace at ArcelorMittal South Africa’s Newcastle mill, in KwaZulu-Natal, led to serious regional rebar shortages in 2011.
“Currently, we do have agreement in principle with the prospective buyer,” Laas reported.
He added that he expected to be in a position to confirm the sale before the group reported its year-end results, scheduled for August 29.
“It took longer than what we had anticipated, but it is under way,” Laas said, describing the potential transaction as being “very far advanced”.
The disposal formed part of the group’s three-year recovery and growth plan, with the 2012 financial year having focused primarily on the recovery aspects of that strategy.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Carbon Steel News
Global crude steel output in September, at 134.4-million tonnes, was marginally lower than the 134.5-million tonnes produced in September 2013. According to the World Steel Association (worldsteel), China produced 67.5-million tonnes of crude steel in September,...
The Steel and Engineering Industries Federation of Southern Africa (Seifsa) warned on Friday that the metals and engineering sector could contract by between 2% and 3% in 2014, owing primarily to the fallout from a month-long strike in July. The sector, which made...
A national debate is needed to discuss ways of lowering the high cost of railing bulk commodities like coal, says Coal of Africa Limited (CoAL) CEO David Brown. The London-, Sydney- and Johannesburg-listed CoAL plans to produce nearly seven-million tons of saleable...
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
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...