AECI on Wednesday celebrated its centenary as it plots a clear growth and expansion trajectory ahead.
AECI has a market capitalisation of R9.69 billion. Posting its annuals last month, the group lowered its final dividend 79% to 119 cents in the year to December 31, but its core mining division saw record results, and group debt reduction targets were met.
Group CEO Holger Riemensperger reiterated the firm’s strategy to become a global top three player in its industry by 2030.
“Through operational excellence and a disciplined approach to capital allocation, we aim to double the Ebitda of our core mining and chemicals business by 2026,” he said.
He said these capabilities were central to the sustainable and profitable growth of AECI, coupled with strategic disinvestments from non-core businesses.
AECI Mining would remain the cornerstone of the growth strategy, with plans to even further expand into key regions such as Asia-Pacific, South America and North America.
AECI’s presence currently spans 22 nations with 7 500 employees.
Riemensperger said the strategy was premised on ensuring that the combined group is structured in a manner that enabled it to unlock value in the near term; delivering operational and executional excellence through focusing on AECI’s core businesses and existing strengths, while ensuring a disciplined approach to capital allocation and execution.
“We believe that in this way the company is better positioned to navigate the changing environment and positioned for strong growth in the future. The group management structure has also been adjusted to reflect the changes in the business and to drive empowerment, accountability and quick decision-making,” he added
“Today we celebrate by returning to the JSE where we were listed in 1966, with our ticker symbol (also called a stock symbol), AFE, unchanged since then. Our first registered address was the National Union of Mineworkers building in Johannesburg city centre. As we open the day’s trade, we mark 100 years of fortitude and success,“ he said.
AECI was the first explosives company in South Africa and Africa and is currently number one in the industry in both.
“This great achievement is why we are here. There are two elements: innovation and excellence, which you cannot buy or take a machine and create. It is all about our people and their minds and hearts. That put us here 100 years later. It is generations and families that have worked for AECI and created this success,” Riemensperger said.
Khotso Mokhele, the chairperson of AECI, said: “Throughout AECI’s century-long journey, our commitment to South Africa’s mining industry has been unwavering. Our enduring legacy of innovation, safety and societal impact underscores our deep-rooted commitment to South Africa’s development and prosperity.”
He said that through a culture of research and development, AECI had consistently introduced cutting-edge technologies and solutions that enhanced efficiency, productivity and sustainability in mining operations.
“From revolutionary explosives formulations to environmentally friendly chemical processes, AECI’s innovative approach has not only propelled its own growth, but has also revolutionised the broader mining industry, paving the way for safer, more sustainable practices,” Mokhele said.
BUSINESS REPORT