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Southern Africa’s largest manufacturer of welded tube and pipe
has acquired the KMG Carbon Steel Division from the Blackstar
Group. This agreement, effective from the 1st June 2011 follows
Blackstar’s decision to divest in KMG Steel Service Centres in
return for 5% of Robor’s issued share capital. The transaction
is said to be worth in excess of R50 million Rand.
The acquisiton encompasses the former KMG Vanderbijlpark, Isando
and Welkom operations. This division known as Baldwins Steel
will be part of Robor Steel Services, operating as Robor
Baldwins under the leadership of Andrew Winter and his
management team.
Baldwins Steel handled more than 108,000 tonnes of flat steel
products in 2010, sourced both locally and internationally. “We
are excited about the possibilities that this new venture offers
our existing customers” said Gordon Gilmer, CEO of Robor. The
firm will now be able to offer a wide range of hot rolled, cold
rolled, galvanized and pre-painted, sheet, coil and plate in
commercial, certified and wear resistant qualities.
This aquisition will enhance Robor’s capabilities and fast track
their strategy of adding value to steel products and increasing
their product offering. Robor Baldwins will be one of South
Africa’s largest steel service centres, servicing distributors
and large end users nationally. “In addition to expanding our
product offering to our domestic market, we will be exporting
these products to our already extensive export destinations
across the globe” continued Gilmer.
Robor will make additional investments in the new Robor Baldwins,
including improvements to the plant that will increase
production capabilities. With the company’s far-reaching
distribution network, strong capital resources, efficient
production and robust information systems Robor anticipates
being one of the top steel vendors in Southern Africa.
Robor is a world-class manufacturer and supplier of welded tube
and pipe, cold formed steel profiles, and associated value added
products. Established in 1922, the company is owned by
Management and Staff and has for two years running won “The
Deloitte Best Company to Work For” Award in the Manufacturing
category.
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