Hu­lamin’s up­date well re­ceived

The Witness - - YOUR MONEY - ED­WARD WEST

HU­LAMIN share­hold­ers ap­pear to have re­ceived an op­er­a­tional up­date on Fri­day with open arms if the share price is any­thing to go by.

The Pi­eter­mar­itzburg­based alu­minium rolled prod­uct and ex­tru­sions com­pany’s share price first climbed by 2,94% to R7 per share on Fri­day, the day the op­er­a­tional up­date was given.

Yes­ter­day the share price was an­other 1,40% higher at R7,24, that’s more than six per­cent in a lit­tle over two trad­ing days. In con­trast the JSE All Share In­dex was down 0,30% by early yes­ter­day af­ter­noon.

The com­pany also on Fri­day night be­came a joint run­ner­up in the Pi­eter­mar­itzburg Cham­ber of Busi­ness’ Busi­ness of the Year com­pe­ti­tion, in the man­u­fac­tur­ing cat­e­gory.

Hu­lamin pro­vided some de­tails of its op­er­a­tional up­date on its web­site.

Stock man­age­ment had im­proved, use of its scrap me­tal units had in­creased and man­u­fac­tur­ing costs had been re­duced over the past 24 months.

The com­pany con­sists pri­mar­ily of two op­er­a­tions: Hu­lamin Rolled Prod­ucts and Hu­lamin Ex­tru­sions.

Cost re­duc­tion tar­gets for the fi­nan­cial year were be­ing met — some R300 mil­lion in cost sav­ings were be­ing tar­geted over the medium term.

“The turn­around in the op­er­a­tional per­for­mance of the busi­ness dur­ing 2016 and 2017 has been no­table, and we con­tinue to build on these suc­cesses,” the group noted on its web­site.

On the man­u­fac­tur­ing front, a record 18month per­for­mance was noted, process con­trols were strength­ened, there was a fo­cus on equip­ment re­li­a­bil­ity, safety, busi­ness im­prove­ment projects and on com­pe­tency and ca­pa­bil­ity de­vel­op­ment.

There had also been “rapid growth in scrap util­i­sa­tion”, with scrap now com­pris­ing more than 20% of the in­put me­tal.

A more than 15% im­prove­ment in rolled prod­uct mar­gin, in U.S. dol­lar/ton, was be­ing tar­geted for the next five years.

Also un­der con­sid­er­a­tion, or be­ing planned, were fur­ther equip­ment in­vest­ments, such as pre­ci­sion ma­chin­ing equip­ment to in­te­grate into the com­po­nent mar­ket, new tech­nol­ogy, al­liances with in­ter­na­tional part­ners, and par­tic­i­pa­tion in the hor­i­zon­tal in­te­gra­tion ini­tia­tives in Isizinda.

Isizinda Alu­minium was es­tab­lished in 2014 by Bin­gelela Cap­i­tal (with 60% share­hold­ing) and Hu­lamin (with 40% share­hold­ing). The com­pany aims to be a pre­ferred part­ner in the ben­e­fi­ci­a­tion of alu­minium, through the cre­ation of sus­tain­able value­added alu­minium prod­ucts.

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