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Possible closure of Pietermaritzburg branch
BSI STEEL LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2001/023164/06)
JSE code: BSS
ISIN: ZAE000125134
(“BSI” or the company")
POSSIBLE CLOSURE OF PIETERMARITZBURG BRANCH
Shareholders are advised that the company is reviewing the viability of
servicing the KZN market through the current Pietermaritzburg warehouse
and office structure, and relocating the company’s administration function to
the BSI Kliprivier office in Gauteng.
Due to decreasing margins over the years, BSI has been forced to utilise the
lowest cost platform to meet market prices. As a consequence, the company
has been supplying a significant and growing portion of steel to KZN
customers directly from Klipriver, which has made the Pietermaritzburg
warehouse increasingly redundant.
We are entering into a consultation phase with our staff to explore options on
how to preserve jobs in PMB. The outcome of this process will dictate if we
retain a KZN footprint or not. In the interim, it is our intention to continue and
improve the quality of direct delivery from Klipriver.
This restructure is a decisive and progressive move to ensure that BSI
remains a competitive distributor in the market. It is expected that this
restructure will result in an efficient, highly cost-effective distribution platform,
geared to meet service and price expectations going forward.
Johannesburg
27 September 2017
Designated Advisor
Sasfin Capital (a member of the Sasfin Group)
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