Local welding and gas solutions provider Afrox on Friday reported that it had signed additional deals within the liquefied petroleum gas (LPG) sector totalling R1.1-billion.
The first contract will see the company provide LPG to major Lesotho distributor Gordon Enterprises over a ten-year period, valued at R1-billion. This involves a new LPG filling site in the Maseru Industrial Development Zone, providing a significant increase in storage to meet increased demand in the area.
Afrox also secured a five-year agreement to supply LPG to a distribution partner in Mthatha, in the Eastern Cape. This contract is worth R100-million and will enable volume availability of LPG to rise by about 100% in the area.
Afrox MD Schalk Venter says the contracts demonstrate the company’s ability to grow existing business with strategic partners, enabled by its supply-on-demand contract with global LPG supplier Petredec.
“Since May, we have imported 30% of our LPG needs through Petredec and the Bidvest Tanker Terminal in Richards Bay and this security of supply will be an engine for growth in the LPG market for Afrox.”
Edited by: Samantha Herbst
Creamer Media Deputy Editor
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