JSE-listed gas provider African Oxygen (Afrox) has secured an R80-million contract to supply bulk oxygen and nitrogen to pulp and paper manufacturer Sappi’s Ngodwana mill, in Mpumalanga.
The long-term contract, which would start in April 2016 for an undisclosed period of time, formed part of the gas firm’s strategy of growing volumes and market share, Afrox MD Schalk Venter said in an update to shareholders on Friday.
“Sappi has made a substantial investment at Ngodwana in order to service the dissolving wood pulp market and we are delighted they have chosen Afrox as the supplier for this strategic mill,” he added.
This marked the fifth contract the company had landed, extended or retained in as many weeks.
Earlier this month, Afrox extended an exclusive R130-million contract to supply Massbuild with liquefied petroleum gas (LPG) until 2020, as well as secured a seven-year R200-million contract extension with an undisclosed major supplier to the South African retail industry in the Western Cape for the exclusive supply of LPG until 2022.
In August, Afrox renewed a R70-million contract with mining company Anglo American Platinum and a R57-million contract with diamond miner De Beers, both for the next five years.