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BUSINESS REPORT Friday, February 17 2017 COMPANIES 17 SPECIAL PROJECTS SALES REPRESENTATIVE: PATSY CHITRAY WRITER: SUPPLIED Published in The Star, Pretoria News, The Mercury & Cape Times Molecor Sizabantu Piping System THE Richards Bay Industrial Development Zone (RBIDZ) is very conscious of its mission of attracting investments and is focused on driving socio-economic development. It also aims to be a catalyst for job creation and foreign direct investment, which is yielding positive results that can be evidenced by the projects taking shape on the ground. In pursuit of this objective and guidance drawn from the Provincial Growth and Development Plans which is linked to the National Development Plan, the RBIDZ is doubling its efforts of attracting new investments into the Zone. This is also evidenced by the investment enquiries showing interest in the key sectors of focus such as metals beneficiation, renewable energy, ICT (techno parks), port optimisation and agro-processing. Presently the RBIDZ prides itself on being home to a R300 million PVC-O pipe plant - Sizabantu Piping Systems factory, which is a leader in the manufacturing and distribution of comprehensive range of high pressure PVC pipes and drainage solutions using Molecor’s proprietary technology. The factory is still in the process of commissioning some of its operational lines however it witnessed its first Molecor production in December 2016 and will soon officially open and be fully operational. The factory’s target markets are the agricultural, civil and industrial sectors locally, as well as in southern Africa and the sub-Saharan region. Plastic pipes come with many inherent advantages in comparison to other traditional materials. These include its non-corrosive properties, which enables a longer lifespan and unlike traditional metallic pipe, no cathodic protection is required. Additional advantages include better hydraulic performance, lower pumping costs, and better surge or water hammer capabilities. Plastic pipe is a tried and tested product, well-suited for Africa and the infrastructure sector. In addition, the demand for potable water in Africa is enormous and its user-friendly products will assist in speeding up the supply of much-needed reticulation systems, particularly in urban centres where the trend points to exponential expansion. This is due to rural communities increasingly migrating to towns and cities in search of better prospects. PVC-O pipes are proving to be a better cost effective alternative option, where large diameter and higher pressure ratings are required for bulk water lines. Sector Solution PVC-O pipes are available in diameters of 110mm up to 800mm (with soon to be introduced 1000mm), in pressure rating up to 25 bar working pressure. Another benefit is the reduction of water leaks that result into less water wastage. “Recognising all the industrial infrastructure on the ground nearing completion accompanied by the strengthened investment pipeline, the RBIDZ is adamant that this milestone will trigger a large flow of foreign and domestic investment (which will) lead to generation of additional socio- economic development, skills transfer and the creation of job opportunities”, emphasised Pumi Motsoahae (CEO of RBIDZ). Why you should opt to secure your investment at the RBIDZ? RBIDZ is recognised as a unique investment destination, boasting: ❑ Purpose-built and secure industrial estate on the northern- eastern coast of KwaZulu-Natal ❑ Linked to the international deep-water port of Richards Bay. ❑ Easy access to roads and railway lines. ❑ Tailored for manufacturing of goods and production of services to boost beneficiation, investment, economic growth and development of skills and employment. ❑ Customs Controlled Area. ❑ Richards Bay has a strong industrial heritage, defined by the existence of its many key multinational companies in the mineral resources, logistics and marine sectors, and these offer strong support in terms of raw and intermediary inputs for downstream beneficiation. To invest in Richards Bay IDZ visit www.rbidz.co.za or contact 035 788 0571. Innovative R300 million PVC-O pipe factory in operation at the Richards Bay Industrial Development Zone RBIDZ CEO – Pumi Motsoahae Molecor production of high pressure plastic pipes. Molecor high pressure plastic piping. Inside the Molecor factory. The RBIDZ CCA approved gated complex. Molecor production facility within the RBIDZ. South32 on opportunistic commodity rebound trail Half-year earnings reach $479m EAGER to capitalise on a re- bound in commodity prices, South32, the Perth-based BHP Billiton spin-off mining com- pany, wants to “opportunis- tically” boost manganese ore output. South32, which was made up of assets deemed too small and unstrategic to BHP Billiton, yesterday counted stronger commodity prices among fac- tors that underpinned its fi- nancial performance in the six months ended December 31. Buoyed by the stronger coal and manganese prices, South32 lifted half-year underlying earnings from continuing operations to US$479 million (R6.25 billion) compared to the corresponding period last year. First dividend In the six months, South32 re- ported a 197 percent improve- ment in free cash flow to $626m. The company declared its first interim dividend of 3.6 cents a share to sharehold- ers. “This dividend is paid in line with our policy to distrib- ute a minimum 40 percent of underlying earnings as divi- dends to shareholders follow- ing each six-month reporting period, having regard to our first two priorities for cash flow, being a commitment to maintain safe and reliable operations and an investment grade credit rating through the cycle,” said South32. Given the rebound in com- modity prices, profit in some divisions was weaker than ex- pected, Peter O’Connor, a Syd- ney-based analyst with Shaw and Partners, said. The divi- dend was also less than antici- pated and “surprising really for a mining company with one of the best balance sheets”, O’Connor said. At end December, South32’s net cash position was $859m, an increase of $547m from June last year. South32 president and chief operating officer of Africa, Mike Fraser, said an invest- ment decision on the project to extend the life of Klipspruit coal mine in Mpumalanga would be made in the second half of this financial year. “There is certainly poten- tial for a long life out of this resource,” Fraser said. In addi- tion to servicing the export market, the mine also supplies Eskom’s Duvha power station. Last week he said that the company would take its plans to extend the colliery to the board later this year. Speaking on the sidelines of the Mining Indaba, Fraser said South32 wanted to get new coal from the extension by 2019. Joint venture South32 chief executive Gra- ham Kerr said that the com- pany wanted to increase its stake in the Samancor Man- ganese Joint Venture in the Northern Cape. South32 is a 60 percent owner and manager of the Samancor Manganese Joint Venture. Anglo American holds the remaining 40 per- cent. But Kerr was doubtful Anglo American would be keen to reduce its interest because of higher commodity prices. “It is a business we know well and we are a large player in it. At the right price, we would be interested in increasing our stake,” he said. In a note, Goldman Sachs said there was no surprise in the South32 numbers. “How- ever, don’t take the lack of surprise as a disappointment. (South32) continues to deliver strong cash flow, has a ro- bust balance sheet and is well placed to take advantage of the next leg of the cycle,” Goldman Sachs said. South32 shares dropped 1.8 percent on the JSE yester- day to close at R26.17. – Addi- tional reporting by Bloomberg Siseko Njobeni 197% Improvement in South32’s free cash flow Stronger coal and manganese prices have lifted South32’s half-year underlying earnings from continuing operations to$479 million. In the past six months, South32 reported a 197 percent improvement in free cash flow to $626m. PHOTO: SUPPLIED AFRICAN News Agency (ANA), the continent’s first content syndication service and social media platform for text, pictures, and videos, has raised $80 million (R1.04 bil- lion) from China, the US and the Middle East. With this investment, ANA has in total raised $165m since its inception. In 2015 the entity raised $30m and last year $55m. The total placing has re- sulted in 15 percent of the shareholding now held by international investors, and 85 percent of shares belonging to the Sekunjalo Group. ANA president Profes- sor Arthur Mutambara said he was delighted at the third tranche of investment. Confidence Mutambara said the invest- ment was a sign of confidence, firstly in an African company, but mostly in the technology platforms which led to ANA exceeding its first milestone three months ago of reaching one billion users. He said he would use the capital to further the technol- ogy platforms and to integrate both business-to-business and consumer-to-consumer. “Technology is the great equaliser. The ANA multi- media technology platform will revolutionise the way Af- ricans communicate among themselves, rebrand the con- tinent, and ignite economic de- velopment,” Mutambara said, adding that the capital would also enhance engagement in social media platforms such as Facebook and to ensure it became the global primary pro- vider for the African content by 2020. ANA is headquartered in South Africa with ownership structures in Mauritius and Switzerland for global expan- sion. It is also planning to set up commercial media bureaus in New York, London, Shang- hai and Dubai, allowing it to continue penetrating global audiences, and furthering its strategy to becoming the go-to source for news, information and data about Africa. Mutambara said ANA would make an announcement about a platform developed in Africa at the World Economic Forum meeting in Durban in May. ANA chief executive Grant Fredericks said the agency had achieved its second strategic milestone, enabling technol- ogy-driven social media plat- forms for text, pictures and videos. “This is an exciting future for ANA and technology in Af- rica as social media platforms are currently dominated by Fa- cebook and others,” Fredericks said. Staff Reporter The capital will also enhance engagement in social media platforms such as Facebook. ANA raises $165m foreign stake ANA president Professor Arthur Mutambara said yesterday the agency had raised a total of $165 million, resulting in 15 percent of the company’s shareholding now being held by international investors. PHOTO: DAVID RITCHIE
