Chief executive Lindsay Ralphs said the LPG facility in KwaZulu-Natal would have 22600-ton capacity to boost supply in the country and exports to neighbouring countries.
“Our expanding LPG facility in Richards Bay is developing as planned, and we are on track to commission the R1billion storage facility in 2020, which will be a game-changer in terms of a secure source of LPG supply for South Africa,” Ralphs said
Bidvest operates seven core divisions and it holds investments in Bidvest Namibia.
The group owns a 52percent stake in Bidvest Properties and 114 strategic group-occupied properties.
Bidvest also has a 38.5percent stake in Adcock Ingram and 27.2percent stake in Comair. The group’s operations are primarily in South Africa with Noonan presenting the offshore exposure.
Last year, Bidvest acquired management services group Noonan for about R2.7bn, extending its footprint beyond its South Africa home base.
Noonan operates throughout the Republic of Ireland and in the UK. The group also acquired 100percent of Ultimate Security Services, a building security company operating primarily in London.
Ralphs said Bidvest would continue to consider future acquisitions but they must be a perfect fit for the group.
“Many acquisitive opportunities were assessed with some still being considered, while others were declined as we remain steadfast in our acquisition disciplines. We continue to seek opportunities within our target set,” he said.
The group has already spent R682million on bolt-on acquisitions.
In the year to end June, Bidvest increased its revenue by 8.4percent to R77bn and trading profit was up by 8.2percent to R6.50bn.
Freight and logistics reported an increase of 14.6 percent in revenue.
The group’s core divisions include services, freight, commercial products, office and print, financial services, automotive and electrical.
Ralphs said the group expected the year ahead to be lacklustre underpinned by low economic growth. “But we will continue to benefit from freight and logistics growth, as well as other pockets of activity which will increase contributions from certain of our businesses. There will be caution until the national election,” he said.
Bidvest declined 0.27percent on the JSE yesterday to close at R182.50.