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8 Apr 2010 16:00
AECI LIMITED
Incorporated in the Republic of South Africa
(Registration No. 1924/002590/06)
Share code: AFE ISIN No. ZAE000000220
("AECI" or "the Company" or "the Group")
CHANGE TO THE CORPORATE STRUCTURE
AECI's vision is to be the chemical and mining services supplier of choice for customers in its chosen markets. The Group will achieve this vision through the successful implementation of its strategy, which is based on four key pillars: world-class technology, a competitive cost base, a customer-driven culture, and responsible behaviour at all times.
The consistent application of these principles across the whole Group will enable AECI to meet its growth and financial performance targets.
R2 billion has been invested in capital expansion projects over the last three years. All of these projects are essentially complete and the Company is now well positioned for growth. To ensure that it is able to take maximum advantage of all growth opportunities in 2010 and beyond, the Group structure has been reviewed.
The review process indicated, inter alia, that the current corporate structure is not ideal. Of particular concerns was AECI's lack of ability to best perform its parenting role by providing operating companies with the support and guidance they require as they grow locally and internationally. This is particularly true for the 20 diverse entities in the Chemical Services (Chemserve) group.
To address this, the current top management structures, systems and processes of AECI and Chemserve will be integrated. All operating businesses, namely all those currently in the Chemserve group plus AEL Mining Services, Heartland and SANS Technical Fibers in the USA, will report to a single Executive Committee with immediate effect.
Members of this new Executive Committee are: Graham Edwards (executive director and chief executive, AECI Limited), Anthony Diepenbroek (managing director, Heartland), Mark Kathan (executive director and chief financial officer, AECI Limited), Tobie Louw (managing director, AEL Mining Services), and Mark Dytor, Edwin Ludick and Schalk Venter from the Chemserve executive.
The AECI and Chemserve head offices will be merged to eliminate the duplication of roles and responsibilities.
The benefits of the new structure will be faster decision making, better focus, better communication and transparency. It will also provide improved accountability and a framework for enhanced corporate governance across all business units.
It is expected that restructuring will be completed in the third quarter of 2010.
Woodmead, Sandton8 April 2010
Sponsor: RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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