| Mon 25 Jun 2001, 0:00 | | Bridgestone Firestone Maxiprest Expands 'tyre Prin |
|
NEWS RELEASE
JOHANNESBURG - Prior to the peace accord of October 1992, Mozambique's
economy was devastated by a protracted civil war and socialist
mismanagement. In 1994, it ranked as one of the poorest countries in the
world. Since then, Mozambique has undertaken a series of economic reforms,
including the privatisation of more than 900 state enterprises.
From 1996 onwards, inflation has been low and foreign exchange rates stable.
Albeit from a small base, Mozambique achieved one of the highest growth
rates in the world in 1997-98. The medium-term outlook for the country looks
bright, as trade and transportation links to South Africa and the rest of
the region are expected to improve and sizeable foreign investments
materialise.
Among these investments are aluminium and steel production; the exploitation
of natural gas; power generation; cotton and sugar farming; fishing; timber;
and transportation services.
With the revision of their tax system and commercial policy, more South
African companies are stepping up their involvement in the transportation,
telecommunications, and energy sectors there. Not to be left behind,
Pentamax (Pty) Ltd, a division of Bridgestone Firestone Maxiprest Ltd the
JSE listed company, has identified Mozambique as a growing export market,
and is expanding the Maxiprest 'tyre print' to the region with the
establishment of a joint venture with Grupo Entreposto.
Grupo Entreposto has over sixty years of trading experience in Mozambique,
focusing on the agricultural; industry, vehicles and heavy machinery; real
estate; and services sectors. With the holding company's head office in
Lisbon, Portugal, Grupo Entreposto also owns and manages operations in
Brazil.
Through an investment of US$1 million, Pentamax has secured a 60% stake in
the Mozambican operations to develop and jointly grow their market share as
a business partner to Grupo Entreposto.
Managing director of Pentamax, Shane Nesbitt, reveals that existing clients
of the JV already include the large sugar estates Marromeu, Chinovane and
Maragra. "Agriculture, as the main driver for economic reconstruction, ranks
high on our agenda. Growth over the short term may exceed even our most
optimistic perspectives!"
Commenting on the exceedingly difficult times Mozambique has experienced,
Nesbitt believes that the time has come for the country to realise its true
potential. "Having been involved in Mozambique since the early eighties, we
have prevailed not only through the economical rehabilitation of the
country, but also survived the enormous setback caused by the floods during
February last year," states Nesbitt.
"Despite these catastrophic events, inflation dramatically reduced to single
digit numbers, while Mozambique registered an economic growth rate of 11%
during 2000, making it the fastest growing nation in Africa."
Newly appointed general manager to the JV, Mr Miqual de Abreu, will take up
his position in July 2001. His appointment brings modern business methods
and expertise to the market, and will ensure that Mozambique enjoys the
service levels maintained by Bridgestone world-wide.
ENDS
For more information contact
Mr ME Davison
Chief Executive Officer
MAXIPREST LTD
PO Box 440 Bergvlei 2012
Tel: 011-786-3070
Fax: 011-440-3032
Mr S Nesbitt
Managing Director
MAXIPREST EXPORT DIVISION
Tel: 011-613-6711
Fax: 011-613-3189
