Afe - Aeci Limited - World Class Joint Venture Plant For Senmin Release Date: 01/02/2008 14:01:01 Code(s): AFE
AFE - AECI Limited - World Class Joint Venture Plant For Senmin
(Incorporated in the Republic of South Africa)
Registration No. 1924/002590/06
Share code: AFE
ISIN code: ZAE00000020
("AECI" or "the Company")
WORLD CLASS JOINT VENTURE PLANT FOR SENMIN
Senmin International (Pty) Limited (Senmin), a subsidiary of Chemical Services
Limited (Chemserve), has concluded a joint venture agreement with Ciba UK plc to
build and operate a R380 million world class plant for manufacturing acrylamide
and polyacrylamide using Ciba technology. Ciba will be a minority equity
partner in the joint venture and, in addition to providing the business with a
royalty-free licence for the use of proprietary technology, will contribute its
brand name to the products manufactured.
The joint venture will supply anionic and non-ionic flocculants as import
replacements to the mining sectors in South and Southern Africa. It will be
part of Ciba`s global network for sourcing mining products previously provided
by manufacturing facilities outside South Africa. It is expected that a
substantial proportion of the plant`s 20 000 tonnes per annum output will be
exported to markets in Australia, North and South America, and Indonesia.
With the current strong market in both precious metals and base metals, demand
for flocculants is growing rapidly. There is currently insufficient capacity to
meet the needs of the mining industry.
Commissioning will start in the first quarter of 2009 and production is
scheduled to commence towards the end of the year. The plant is to be built at
Senmin`s site in Sasolburg. Chemcity, a Sasol enterprise development initiative
and a wholly-owned subsidiary of Sasol Chemical Industries, has been appointed
by the joint venture to facilitate and assist in securing the supply of key raw
materials, utilities and other services from Sasol`s existing operations.
Chemserve is a wholly-owned subsidiary of AECI Limited and this investment is
part of Chemserve`s strategy of growing its position as a provider of specialty
products and services to the expanding mining industry both within and beyond
South Africa`s borders.
1 February 2008
Enquiries: Theunis Botha
Tel: +27 11 794 5902
Fax: +27 11 795 1220
Cell phone: 083 251 0195
Date: 01/02/2008 14:01:01 Supplied by www.sharenet.co.za
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