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TNT
THGL
Tongaat-Hulett - Hulett Aluminium to expand capacity for High Value Products
The Tongaat-Hulett Group Limited
(Registration number 1892/000610/06)
Share code: TNT
Issuer Code: THGL
ISIN: ZAE000007449
HULETT ALUMINIUM TO EXPAND CAPACITY FOR HIGH VALUE PRODUCTS
Tongaat-Hulett, Anglo American and the Industrial Development Corporation have
given approval to proceed with a R950 million expansion project at Hulett
Aluminium. This follows Tongaat-Hulett"s announcement earlier this year of its
plans to unbundle and list Hulett Aluminium on the JSE Limited, thereby
establishing two attractive, focused investment vehicles and creating the
opportunity for BEE shareholding in both entities. BEE shareholding is expected
to be introduced at the level of 25% in Tongaat-Hulett and 15% in Hulett
Aluminium when the unbundling and listing takes place in 2007.
Tongaat-Hulett CEO Peter Staude said, "The expansion of Hulett Aluminium
reflects the confidence of its shareholders that further value can be unlocked
from the current base. This investment follows the R2,4 billion (US dollar 550
million) Rolled Products Expansion Project that came on stream in November 2000.
This enabled Hulett Aluminium to grow its Rolled Products annual sales volumes
from a position of some 50 000 tons, exporting less than 10% of its capacity to
3 countries to one where in the month of August its annualised sales exceeded
200 000 tons. Hulett Aluminium now exports in excess of 70% of its output to
more than 50 countries. The company has achieved recognition in establishing
itself as a leading global producer of high margin, technologically demanding
products, inter alia winning the overall State President"s Award for Export
Achievement and the MTN/Business Day Technology Top 100 Award."
"This project is another major milestone in the growth of our business," says
Alan Fourie, Managing Director of Hulett Aluminium. "The expansion of the
Pietermaritzburg facility will increase rolled products capacity by 20% to 250
000 tons per annum. The project entails the installation of additional state of
the art foil rolling and plate equipment, continuous casters and upgrades to
existing rolling mills. The project focuses on further enhancing the product
mix, where 58% of the capital will be spent. This will result in increased sales
of high margin products, especially light gauge foil and heat treated plate.
Hulett Aluminium expects to maintain its profitable growth from existing
operations over the next two years, followed by the benefits of the project
coming on stream in 2009. This will enable Hulett Aluminium to continue
unlocking value by further enhancing sales mix, growing volumes and reducing
unit costs."
Ends.
Investor Relations Contact:
Zaf Mahomed (032) 439 4067
12 October 2006
Tongaat
Sponsor: Investec Bank Limited
Date: 12/10/2006 07:00:03 AM Produced by the JSE SENS Department
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