JSE-listed gas and welding firm, African Oxygen (Afrox), on Wednesday said it had successfully managed to retain the R26 million ($2.3 million) a year contract to provide JSE-listed petrochemicals giant, Sasol, with compressed gases for the next five years.
This five-year contract extension is likely to lead to total sales amounting to about R150 million ($1.3 million).
Sasol has also acquired a wide range of hard goods on contract from Afrox and this contract was also extended for a further five years in January this year. The estimated total value of sales as a result of the welding contract extension is R32 million ($3 million).
“The extension of our gas supply contract ensures a mutually beneficial business relationship with this major South African and globally recognised fuels and chemical supplier continues and improves,” Afrox MD, Brett Kimber, said.
“We supply Sasol with many locally manufactured special and imported gases and over the years it has become Afrox’s largest local special gases customer,” Kimber continued.
Since his appointment as the new CEO Kimber has kept these contracts coming from the beginning of this year.
Last Thursday, Afrox said it had signed a five-year R147 million ($13.7 million) contract with Exxaro FerroAlloys, a unit of the JSE-listed mining resources firm, Exxaro.
In terms of the deal, Afrox will supply nitrogen to Exxaro FerroAlloys’ factory in West Pretoria, South Africa. This was the fourth contract that Afrox had won this year.
Earlier this year, Afrox, won a R65 million ($6m) five-year contract to supply gas and welding consumables to Steinmüller Africa, a unit of the global group that provides power generation, Bilfinger SE.
It also won a R25 million-a-year ($2,3m) contract to supply equipment to wholesaler, Matus, which is a unit of Brandcorp, a Johannesburg-based industrial tools distributor.
Afrox also signed a five-year R55 million ($5,2m) contract to supply liquefied petroleum gas (LPG) to Sun International, a well-known South African domiciled hotel chain. Afrox makes its gases and other products on 41 different sites across southern Africa.
