South Africa’s Afrox Wins $2.3 million-a-year Equipment Supply Contract

Johannesburg Stock Exchange (JSE):  listed gas and welding firm, African Oxygen (Afrox), on Wednesday said it had won a R25 million-a-year ($2.3 million) contract to supply equipment to wholesaler, Matus, which is a unit of Brandcorp, a Johannesburg-based industrial tools distributor.

Brett Kimber, the MD of Afrox, said dealing with a wholesaler as big as Matus will help the company in its efforts to cut costs.  Kimber said, “(It also) builds a brand on the newly- launched Transarc 6013 electrode.  In this way, Afrox also reaches a far broader customer base than individual sales teams would be able to achieve.”

This is the second contract that Afrox has won in as many weeks, which means the firm’s track record continues to stand it in good stead this year.  The firm last week said it had signed a five-year R55 million ($5.2 million) contract to supply liquefied petroleum gas (LPG) to Sun International, a well-known South African domiciled hotel chain.

Afrox makes its gases and other products on 41 different sites across southern Africa. Its Bulk Scheduling Center deals with more than 20,000 “customer drops” a month, while its transport fleet covers around 24 million kilometers a year.  The gas and welding firm employs more than 3000 people and has a national network of distributors and branded Gas & Gear centers.

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