| Thu 8 Apr 2010, 17:00 | | AFE - AECI Limited - Change to the corporate structure |
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AFE
AFE
AFE - AECI Limited - Change to the corporate structure
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, Sandton
8 April 2010
Sponsor: RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 08/04/2010 17:00:01 Produced by the JSE SENS Department.
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