In March 2012 Afrimat's acquisition of S.A. Block (Pty) Limited, and in turn its wholly-owned subsidiary Clinker Supplies, which together make up the Clinker Group, was finalised. The acquisition will be included for the full FY2012.
The Clinker Group pioneered the use of clinker material in the concrete manufacturing and civil construction industries in the 1950s. It is the leading supplier and processor of raw clinker to the concrete manufacturing industry today and also manufactures its own concrete products from clinker material. The group extracts clinker raw material from various stock piles and operates well established and maintained processing and manufacturing plants. Key operations are located close to Vereeniging with support services based in Alrode and the group supplies customers in the wider Gauteng market and adjacent northern provinces.
Operations are situated close to the recently acquired and highly successful Glen Douglas Mine, creating
exciting opportunities for synergy. Further the
acquisition provides Afrimat with a hedge against the volatile cyclicality associated with the aggregates industry. Clinker's distinct characteristics are difficult to substitute which make it resilient to market fluctuations. CEO Andries van Heerden says, "Based on current sales volumes, sufficient clinker raw material resources have been secured under contract for the next ten years – despite a shorter life than that of the average aggregate mine, the expected financial returns of this investment are attractive".
Van Heerden says that the acquisition gives the group a foothold in the clinker supply market and further entrenches the group's presence in concrete manufacturing.
"The acquisition is in line with our strategy of seeking out new avenues for growth and presents us with a unique opportunity to generate further revenue opportunities through new product development as well as a refined, focused marketing strategy."