AECI buys stake in Indonesian firm
9 November 2012
South African explosives and chemicals company AECI has acquired a 42% stake in Indonesian chemical firm Black Bear Resources Indonesia (BBRI) for US$23-million, the organisation announced on Wednesday.
"In line with its internationalisation strategy, AECI subsidiary AEL Mining Services entered the Indonesian market in 2009," AECI said in a statement. "Significant sales volumes were achieved and AEL rapidly became the second largest supplier of explosives to that market."
BBRI is building a nitric acid plant and ammonium nitrate solution plant in Bontang in Indonesia and AECI believe in-country access to a secure source of ammonium nitrate will sustain its growth in the country.
"The BBRI partnership is the first phase of a potential future AECI investment programme for the growing Southeast Asian mining services market," the company said.
The firm has also expanded its southern African interests by acquiring 80% of Afoodable Proprietary Limited in Cape Town, which will be merged into the food division of Lake International Technologies.
Afoodable primarily manufactures and bottles marinades and sauces for retailers an manufacturers. Lake represents international manufacturers and suppliers of specialty ingredients for the food industry.
"The Afoodable acquisition provides Lake with entry into the meat sauces industry and enhances the range of products and services available to its customers in Southern Africa," AECI said.
The acquisitions form part of the company's plans to expand its footprint further into Africa, Southeast Asia and South America.