On 26 October, Cummins Southern Africa
broke ground at the site of its planned facility
in Waterfall City, Midrand, South Africa.
Once completed, the facility will consolidate
Cummins’ four existing Gauteng-based facilities
in a single, central location. The new premises
will include the Cummins Southern Africa
Regional Operations, the Master Rebuild
Centre, the current Cummins Longmeadow
Branch and the Technical Training Centre.
The long-awaited, state-of-the-art building is
due for completion in October 2018, with full
occupancy to be achieved in early 2019.
Volvo Financial Services (VFS), the global captive finance arm of the
Volvo Group, has announced the launch of its operation in South Africa
through the newly established Volvo Financial Services Southern Africa.
VFS will provide financial services to the customers of the Volvo Group’s
truck and bus industry brands currently operating as part of Volvo Group
Southern Africa, including UD Trucks, Volvo Bus, Volvo Trucks and
Volvo Construction Equipment (Volvo CE). VFS, formed in 2001 and
headquartered in the US, manages a net credit portfolio of over SEK126-
billion [R213-billion], employs over 1 400 people worldwide and provides
customer financing in over 45 countries. VFS will also continue its alliance
with WesBank, a division of First Rand Bank, to further strengthen
the company’s offering of operating lease agreements, instalment sales
agreements and finance leases to customers.
Open pit mining company
Afrimat, which provides
industrial minerals,
commodities and construction
materials, has released its
interim results for the six
months ended 31 August 2017.
Revenue was flat at R1.2-
billion but headline earnings
per share increased by 7.4%
from 95.2 cents to 102.2 cents.
The contribution from the
aggregates and industrial
minerals segment to revenue
was 69.2%, commodities 2.5%
and concrete based products
contributed the balance
of 28.3%.
Afrimat CEO Andries van
Heerden says he is satisfied
with the results, given current
market conditions, particularly
during the first quarter of the
financial year. “Afrimat has since
its inception subscribed to being
diversified across both products
and locations, being deeply
knowledgeable about its market
and products, driven by an
awareness of cost management.
This stood us in very good stead
in this market.
“We are pleased to advise
shareholders that our dividend
policy of maintaining a 2.75
times dividend cover remains
in place and an interim gross
dividend of 20 cents per share
has been declared,” he adds.
The first quarter was impacted
by an unusually low number
of effective trading days in
April 2017 and by major
political events that severely
impacted business confidence.
However, this was balanced by
the exceptionally good results
delivered in the second quarter.
“We are particularly pleased with
the results from the traditional
construction materials business
in the Western Cape and
Industrial Minerals divisions
Infrasors and Cape Lime,” says
Van Heerden.
Cash generation was
temporarily impacted by
investments in additional clinker
stock for SA Block, and working
capital for the recently acquired
small iron ore mine Diro. The latter
also affected the commodities
segment of the business.
Prior to Afrimat’s acquisition,
Diro’s operations were halted
due to financial distress, and the
mine was placed into formal
business rescue on 7 June 2016.
Diro concluded a final product
sale