http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.73Change: -0.21
R/$ = 12.27Change: 0.05
Au 1176.47 $/ozChange: -2.08
Pt 1080.00 $/ozChange: 1.50
 
 
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 Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 13, 2012

M&R plots growth plan as recovery year comes to a close

Back
Construction|Building|Eskom|Gautrain|Mining|Murray|Platinum|PROJECT|Projects|rail|Rosebank|Water|Eskom’s Medupi Power Station|Gautrain|Steel|Gautrain|Gautrain|Henry Laas|Power|Water
Construction|Building|Eskom|Gautrain|Mining|Platinum|PROJECT|Projects|rail|Water|Gautrain|Steel|Gautrain|Gautrain|Power|Water
construction|building|eskom|gautrain-company|mining|murray-company|platinum|project|projects|rail|rosebank|water-company|eskoms-medupi-power-station-facility|gautrain-facility|steel|gautrain-organization|gautrain|henry-laas|power|water
© Reuse this



Construction group Murray & Roberts (M&R) is ready to implement a two-year, board-approved growth programme starting this new financial year, following the completion of a year-long recovery strategy which has seen the resolution of what CEO Henry Laas terms “several challenging projects”.

The group earlier this year reported a R528-million loss for the six months ended December 31.

Laas says that “work is basically complete” on the Australian Gorgon Pioneer Material Offloading Facility project, which he describes as a major former cashdrain on the group. M&R is currently demobilising from the site.

A claims resolution process on this project is in progress, and the company is “satisfied with how it is progressing”, he notes.

The final link of the Gautrain project, in Gauteng, finally opened in June following nine-month-long remedial work to the tunnel owing to water ingress.

However, Laas says the dispute on the interpretation of tunnel water specifications in accordance with the concession agreement with the Gauteng provincial government remains.

M&R forms part of the Bombela consortium responsible for building and operating the rapid rail link.
Arbitration on the water issue is expected to start in September, says Laas.

As the outcome is uncertain, M&R may still incur further costs on this con- tract, as the group could be forced to return to the tunnel between Rosebank and Part stations for further remedial work, he adds.

Bombela’s larger Gautrain delay and disruption claim against government is continuing, with resolution expected only in 2014.

Issues around Eskom’s Medupi power station have also been resolved through an in-principle agreement with the State-owned power utility.

Laas is also pleased that M&R finally has an agreement, again in principle, with a prospective buyer for its remaining steel business, with the company “hope- fully” closing the sale before its financial results are announced in August.

More good news is that M&R’s order book remains strong at more than R50-billion.

Mixed Mining Outlook
Looking at the mining business speci- fically, Laas is pleased about growth achieved in the South-East Asian, Australian and Canadian markets, with the South African platinum sector less of a star performer. A depressed platinum market has already taken casualties, with two major local shafts placed on care and mainte- nance in recent weeks.

Laas notes that M&R is “making good progress” in diversifying into other mining sectors.

As for the local construction sector, the company boss is hopeful of some recovery in the short to medium term.

He notes that it is still “tough out there”, with margins highly competitive “and low”.

However, he expects that M&R’s construction business will show “a significant improvement” going forward, as all major lossmaking projects have now been wrapped up.

Laas adds that M&R has determined that its earlier provision for possible penalties under the Competition Commission investigation into collusion in the local construction industry has been sufficient, with the commission giving an indication of a fine above the minimum range of the provision, and below the maximum range.

“Hopefully, we will reach a settlement soon.”

Edited by: Martin Zhuwakinyu
Creamer Media Senior Deputy Editor
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Construction News
Italian independent renewable-energy power producer Building Energy has signed a memorandum of understanding with Egypt’s New & Renewable Energy Authority for two 50 MW, $200-million, photovoltaic (PV) plants, in Benban, Upper Egypt. The plants, which would be built...
JSE-listed real estate investment trust Accelerate Property Fund on Monday concluded an agreement with Fourways Precinct to secure a 50% undivided share in the imminent supermall development in the Northern Johannesburg suburbs. A 2013 agreement between Accelerate...
Construction company Basil Read on Friday said the discussions regarding the potential disposal of certain noncore assets, including Basil Read Energy and Basil Read Matomo, were still ongoing. The company had chosen a preferred bidder to buy the energy unit, subject...
More
 
 
Latest News
Advanced manufacturing was internationally regarded as critical to reversing the economically-stifling effects of increasing deindustrialisation and could prove to be the answer to South Africa’s stagnant growth rate, the Manufacturing Indaba heard on Friday....
Manufacturing Circle executive director Coenraad Bezuidenhout
With growth rates exceeding those of the developed world – averaging between 4% and 5% from 2002 to 2014 – African States remain key targets for industrial exports from South African manufacturers, who would do well to leverage their proximity to the sub-Saharan...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
JSE-listed Afrimat will make a cash offer to acquire the entire remaining issued share capital of subsidiary Infrasors that it does not already own.
TEAMWORK Aggreko Europe, Middle East & Africa MD David Taylor-Smith; Aggreko Zambia chairperson Dr. Sixtus Mulenga; Aggreko Africa MD James Shepherd
Temporary power generation services provider Aggreko announced earlier this month that it had appointed Dr Sixtus Mulenga as nonexecutive chairperson of Aggreko Zambia, a move it believed was integral to the ongoing expansion of its operations in Zambia and the rest...
Major global aircraft manufacturer Airbus Commercial Aircraft is maintaining a steady course. "I don't have any big news, good or bad," company President and CEO Fabrice Brégier told international aviation journalists in Toulouse, France, at the company’s recent...
MEASURING DEVICES Bosch has released a mobile app that enables the measurements made with measuring devices to be sent and used directly on the app for accuracy and on-site quoting
Industrial tool manufacturer Bosch has increased the compatibility of many batteries in its range of blue industrial power tools and has released mobile-device applications (apps) for users of the tools, says Bosch South Africa training manager Peter du Bruyn. Many...
The new Nissan Navara has been launched onto the global market, but Nissan South Africa (NSA) will only know in August whether the local Rosslyn plant will assemble the one-ton pickup. The NSA plant currently produces the old NP300 Hardbody one-ton bakkie, as well as...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96