Industrial gas company Afrox has signed a R160-million contract to supply Africa’s only flat stainless steel products manufacturer Columbus Stainless with oxygen and nitrogen until 2021.
Afrox said in a statement on Thursday that the gas would be piped to Columbus’ works in Middleburg, Mpumalanga, from the company’s Witbank facility, in Gauteng, effective from February 1.
“This also secures the future of Afrox’s Witbank air-separation unit facilities as well as additional liquid to the South African market,” Afrox MD Brett Kimber said.
Columbus CEO Dave Martin confirmed that the extension sustained supply at competitive rates and provided improved reliability, with various back-up options to ensure security of supply.
Afrox will release its full-year results on Friday.