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Wednesday, February 18, 2009.

From Creamer Media in Johannesburg, I'm Shannon O'Donnell.

Making headlines today:

State freight logistics group Transnet has denied suggestions that it was considering pulling back from its planned 80,5-billion-rand, five-year capex programme, in light of slackening demand and falling revenue.

Spokesperson John Dludlu said that some projects had been "reprioritised in line with customer demand". But, he stressed that "in aggregate" all major projects were proceeding to plan and schedule.

This assertion came against the backdrop of several recent reports suggesting that the group could cut expenditure in light of falling revenue and even decline into a loss for 2008/9.

Such a move would be in conflict with government's continual assertion that South Africa's public infrastructure plans remain intact.

The nonexecutive chairperson of Cape Manufacturing Engineering, Ewald Wessels, said that two subsidiaries of the engineering firm will face liquidation unless the group receives some financial assistance.

The company said that it had approached the Industrial Development Corporation, proposing that the development finance organisation buy a 51% stake in its subsidiaries CME Foundry and CME Automotive.

Wessels said that it had, to date, received positive feedback from the IDC, which had sent a team to undertake a due diligence early this year.

However, Wessels said that the team would only submit its proposals to the IDC's credit committee for a decision on February 27.

Also making headlines:

The auto catalytic sector sees production volumes and employment plummet.
The National Energy Regulator of South Africa says that an April 1st Eskom tariff increase is unrealistic.
Passenger airliner Comair's interim earnings are down almost 50% on high fuel costs.
And, audit firm KPMG's forensic unit is appointed to probe the SAA mismanagement claims.

That's a round up of news making headlines today. For more on these and other stories please visit engineeringnews.co.za.