M&R plans to sell underperforming Cisco business

9th November 2010 By: Creamer Media Reporter

South African engineering, contracting and construction services group Murray & Roberts (M&R) is planning to dispose of its Cape Town Iron & Steel Works (Cisco) business as a “priority”, owing to the continued underperformance of this business.

In October, the group announced that it would start a programme of closure or disposal of underperforming assets, as some of the markets which it served had become increasingly stressed, a situation that would not likely improve in the medium term.

The ongoing adverse market conditions has prompted M&R to rationalise some divisions within its steel business, most notably Cisco, which is an electric arc furnace melt shop and reinforcing steel rolling mill in the Western Cape.

The group stated that it has completed the preconditions to the regulatory process for business restructuring, including notifying affected parties of the planned sale of Cisco.

If it is unable to sell Cisco, the group would consider closing or selling certain of its steel operations, M&R stated.

M&R’s steel business also includes BRC Mesh, Freyssinet Posten, Kosto, Reinforcing Steel Contractors (RSC), RSC Ekusasa Mining, RSC International Trading, Shisane Reinforcing and Specialist Equipment Manufacturers.