Profile and Strategy

AECI IS A SOUTH AFRICAN-BASED EXPLOSIVES AND SPECIALTY CHEMICALS COMPANY FOCUSED ON PROVIDING PRODUCTS AND SERVICES TO A BROAD SPECTRUM OF CUSTOMERS IN THE MINING, MANUFACTURING AND AGRICULTURAL SECTORS. IT HAS REGIONAL AND INTERNATIONAL BUSINESSES IN AFRICA, SOUTH EAST ASIA, THE USA AND AUSTRALIA. OTHER MARKETS OF INTEREST ARE IN LATIN AMERICA.

THE FOCUS IS ON DOMESTIC GROWTH AS WELL AS ONGOING EXPANSION OUTSIDE SOUTH AFRICA IN THE GROUP’S CHOSEN STRATEGIC AREAS OF MINING SOLUTIONS, WATER SOLUTIONS, AGROCHEMICALS, AND FOOD ADDITIVES AND INGREDIENTS. THE PROACTIVE MANAGEMENT OF A PORTFOLIO OF SPECIALTY CHEMICALS BUSINESSES IS THE GROUP’S FIFTH GROWTH PILLAR.

Mining Solutions is led by AEL Mining Services (“AEL”) and Senmin, Water Solutions by ImproChem and Agrochemicals by Nulandis. Lake Foods and Southern Canned Products (“SCP”) constitute the Food Additives and Ingredients pillar.

The Group’s 2015 revenue split demonstrates the success of strategic execution in terms of these growth pillars.

15 GROUP BUSINESSES   6 246 EMPLOYEES


REVENUE BY PILLAR

 

 1    2    3    4    5  
                   
                   
MINING SOLUTIONS   WATER SOLUTIONS   AGROCHEMICALS   FOOD ADDITIVES AND INGREDIENTS   PORTFOLIO OF SPECIALTY CHEMICALS BUSINESSES  
AEL AND SENMIN   IMPROCHEM   NULANDIS   LAKE FOODS AND SCP      
                   
                   
         
R10,01bn   R1,38bn   R2,47bn   R814m   R3,44bn  

 

1 Mining Solutions is AECI’s international business. Both AEL and Senmin have proprietary intellectual property, enabling them to service customers worldwide. Between them the two companies have close to 100 operations (including manufacturing plants, sales offices and distribution centres) in more than 20 countries, including an extensive footprint in Africa. AEL also has an established presence in Indonesia and Australia.

In 2015, AEL maintained its investment in R&D. Product innovation and enhancements are under the management of AEL’s specialist team at Modderfontein. Also in 2015, Senmin took occupation of its new state-of-the-art R&D facility in Sasolburg.
2 Business expansion in Africa is a thrust for Water Solutions and Agrochemicals.

ImproChem’s African footprint was enhanced in 2014 with the acquisition of the African water treatment business of Clariant Southern Africa. ImproChem is now a leading industrial, effluent and municipal water treatment chemical company in Africa.
3 Nulandis, which is leading the Group’s agrochemicals strategic growth in Africa, extended its footprint through the acquisition of Farmers Organisation, in Malawi. Farmers Organisation is a distributor of agrochemicals, seeds and spraying equipment to commercial farmers and the growing smallholder market. Also acquired and integrated with Nulandis was Biocult, a South African R&D-based company that develops and produces a range of soil-enhancing biological products.
4 In Food Additives and Ingredients, the strategy is for the pillar to reach critical mass in South Africa and to expand into Africa thereafter. To this end AECI acquired SCP, a manufacturer and distributor of additives and ingredients for juice-based drinks and products, in Cape Town.
5 A solid portfolio of Specialty Chemicals businesses remains core for AECI. These businesses serve a diverse range of customers, mainly in the local manufacturing sector. The active management and enhancement of this portfolio ensures that synergies are maximised to boost overall efficiencies and that costs remain well controlled.

All remaining land surplus to operational requirements in Somerset West was sold in 2015. The Group still has about 216 hectares of surplus land at Modderfontein. AECI’s remaining property activities, mainly the leasing of buildings and the provision of services at the multi-user Umbogintwini Industrial Complex in KwaZulu-Natal, are managed by Acacia Real Estate, the Group’s property division.

AECI WAS REGISTERED AS A COMPANY IN SOUTH AFRICA IN 1924 AND HAS BEEN LISTED ON THE JSE SINCE 1966.


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