/ 24 February 2005

Afrox forges ahead with growth initiatives

African Oxygen Limited (Afrox) is presently spearheading more than 40 growth projects, one of which is a R100-million re-engineering of its gases operations centre in Germiston on the East Rand.

These projects cover organic growth as well as new greenfield’s projects and acquisitions. In addition, the company is substantially increasing the product service offers to customers in South Africa and Africa.

The centre is the largest gas cylinder-filling site in the southern hemisphere and the most complex in terms of its product mix.

The complete modernisation and refurbishment of these facilities will take three years to complete and will include a world-class logistics layout. A new nitrous oxide facility will be constructed to cater for the growth of this important anaesthetic and analgesic gas.

Speaking at the annual general meeting of the gases and welding products group on Thursday, Afrox’s chief executive, Rick Hogben said: “Most of our growth projects are designed to access new markets, improve service levels, and to ensure we have product availability going forward. The GOC facility in particular, will position Afrox at the forefront of global filling technology. This will increase our efficiencies substantially, showing real profit realisation within three years.”

The GOC expansion is part of a programme that Afrox has implemented to focus on its customers and to improve levels of service and efficiency throughout the organisation.

“We have surveyed attitudes towards customer-centricity, and we will continue to identify and present product service offers that suit our customers” needs,” Hogben said.

“We have converted several of our call and collect centres into fully-fledged retail stores under the brand name of Afrox Gas & Gear. The success of these Gas & Gear outlets is extremely encouraging with net sales showing growth of up to 40% for the upgraded centres. We plan to have 16 operational by the year end and to convert 40 more outlets to Gas & Gear centres within the next three years,” said Hogben.

“Over the past few years we have expanded our core gases business and restructured the scientific gases, packaged chemicals, helium and refrigerant services operations. We have also identified new applications and will now expand our offer and service for a complete range of diving gases, fire suppression gases, an improved customised helium service and broader refrigerant services.” – I-Net Bridge