Last checked at 1 Feb 2008 12:01
AECI LIMITED
(Incorporated in the Republic of South Africa)
Registration No. 1924/002590/06
Share code: AFEISIN code: ZAE00000020("AECI" or "the Company")NEWS RELEASE
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.
Ends.1 February 2008Enquiries: Theunis BothaManaging directorSenmin InternationalTel: +27 11 794 5902Fax: +27 11 795 1220Cell phone: 083 251 0195
email: Theunis.Botha@senmin.co.za
AECI LTD