Values and profile

AECI is a specialty product and services Group of companies which provides value-adding solutions to customers through science, technology and industry knowledge. The focus is on serving the mining and manufacturing sectors. As part of enhancing this strategic thrust, the Dulux decorative coatings business was disposed of in 2007 and the unprofitable segments of the SANS Fibres business were closed.

At the same time, the Group is investing substantial sums in its future growth. Construction is in progress on six significant projects, with capital expenditure totalling about R1.4 billion over the next two years. The projects relate mainly to the mining sector but capital is also being invested to augment the Group's ability to meet escalating demand in consumer-driven markets. This increase in demand is attributable, in large part, to the ongoing growth of South Africa's black middle class.

AECI’s core businesses serve global and regional markets. They are characterised by application know-how and service delivery, operate in niche markets, and are supported by leading international technology alliances.

Principal manufacturing sites are located in South Africa, near Johannesburg (mining solutions, provided by African Explosives Limited, and specialty chemicals via Chemical Services Limited) and Durban (specialty chemicals). Chemical Services' mining chemicals thrust is anchored in Senmin, which operates at Sasolburg in the Free State.

AECI’s BUSINESSES
	South Africa’s only major economically empowered producer and supplier of commercial explosives, initiating systems, and blasting services and solutions to the mining, quarrying and allied industries. It is also a leading supplier to customers in Africa, beyond South Africa.		Chemical Services manages a portfolio of 20 specialty chemical businesses, each focused on defined markets, with common values of innovative customer service and bottom line delivery. The group grows by acquisition and by organic growth.		Heartland Properties and Heartland Leasing manage the realisation of land and the letting of assets that are surplus to AECI's requirements. Heartland Leasing also provides site services to tenants at the Umbogintwini Industrial Complex and oversees remediation prior to land release.

African Explosives and Chemical Services have expanded their presence throughout sub-Saharan Africa. Furthermore, in mining solutions, the DetNet joint venture aims to be the international leader in the design, production and sale of specialised electronic detonators.

Both businesses continue to explore opportunities to take their products and service packages to niche markets in countries beyond their traditional areas of activity. In specialty chemicals, for example, a stable presence has been established in Brazil and more acquisitions are being sought using the existing investment as a platform for growth.

The Group is fortunate that, in addition to its core businesses, it has a most valuable land asset, the release of which it can control and influence. The realisation of land and the utilisation of built assets that have become surplus to AECI's requirements are managed in the property portfolio, led by Heartland Properties. These activities are significant and offer prime holdings near Johannesburg and Cape Town for commercial, residential and industrial development and leasing purposes. By the end of 2007, 1 450 hectares of the 3 770 hectares of excess land available had been sold.

AECI has a total employee complement of about 6 300, many of whom are engaged in the Group's extensive sales, technical service and distribution networks.

The Company is domiciled in South Africa and is listed on the JSE Limited. At 31 December 2007, its market capitalisation was R9.5 billion.