AECI

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AECI Limited is a South African chemicals group and is listed on the Johannesburg Stock Exchange.

The AECI Group operates companies in the following market segments:

Mining solutions (explosives and initiating systems)
Specialty fibres
Specialty chemicals
Real Estate

AECI's principal manufacturing sites are located in the following cities in South Africa:

Johannesburg (mining solutions and specialty chemicals)
Sasolburg (specialty chemicals)
Durban (specialty chemicals).

AECI is a specialty product and services Group of companies which provides value-adding solutions to customers through science, technology and industry knowledge. The focus is on serving the mining and manufacturing sectors. As part of enhancing this strategic thrust, the Dulux decorative coatings business was disposed of in 2007 and the unprofitable segments of the SANS Fibres business were closed.

At the same time, the Group confirmed the investment of substantial sums in its future growth. Construction is in progress on five significant projects related mainly to the mining sector, with capital expenditure of about R1.1 billion in total over the next two years. Capital is also being invested to augment the Group’s ability to meet escalating demand in consumer-driven markets. This increase in demand is attributable, in large part, to the ongoing growth of South Africa’s Black middle class.

AECI’s core businesses serve both global and regional markets. They are characterised by application know-how and service delivery, operate in niche markets, and are supported by leading international technology alliances.

Both African Explosives and Chemical Services have expanded their presence throughout sub-Saharan Africa. Furthermore, in mining solutions, the DetNet joint venture aims to be the international leader in the design, production and sale of specialised electronic detonators.

Both businesses continue to explore opportunities to take their proven products and service packages to niche markets in countries beyond their traditional areas of activity. In specialty chemicals, for example, a stable and proven presence has been established in Brazil and more acquisitions are being sought using the existing business as a platform for growth.

The Group is fortunate that, in addition to its core businesses, it has a most valuable land bank, the release of which it can control and influence. The realisation of land and the utilisation of built assets that have become surplus to AECI’s requirements are managed in the property portfolio, led by Heartland Properties. These activities are significant and offer prime land holdings near Johannesburg and Cape Town for commercial, residential and industrial development and leasing purposes. By the end of 2007, 14.5 square kilometres of the 37.7 square kilometres of excess land available had been sold.

At the end of 2007, AECI had a total employee complement of about 6 000, many of whom are engaged in the Group's extensive sales, technical service and distribution networks.

[edit] History

The company was registered as African Explosives and Industries (AE&I) in 1924, with its headquarters in Johannesburg. It was formed as the result of a merger between the South African interests of Nobel Industries of the United Kingdom and the manufacturing arm of De Beers Consolidated Diamond Mines of Kimberley. The company's primary purpose was to provide blasting explosives and detonators to South African gold and diamond mines but AE&I was also the only South African producer of phosphatic fertilizer.