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ARCHIVE : Roadspan Group acquires asphalt manufacturing capacity
Posted on 25 June 2008

On Tuesday 13 May, Roadspan acquired the 10 asphalt plants that were previously owned by Blacktop Group subsidiary, Atlas. The plants are located in various smaller towns around Gauteng and securing an asphalt supply that is critical to the future success of Roadspan.

Chairman, James Whitehouse, explains… “Quite frankly, we weren't ready to be taking on asphalt plants at this early stage of our existence. But our assessment of the burgeoning roads surfacing market over the next few years in the region suggests that anybody who does not have a secure supply chain may be compromised. And given that the assets were up for auction, we didn't have the luxury of time on our side. This was an investment to ensure we would be able to access the necessary asphalt on the right terms for our roads surfacing and rehabilitation division. As soon as we have settled the road surfacing business down, we will also be looking for vertical integration opportunities to secure our supply chain.”

Included in the acquisition were operational asphalt plants in Trichardt, Stilfontein, Witbank, Schaaprand, Kimberley, Welkom and Mafikeng. In addition, a new 120tph unassembled plant in Jet Park will be deployed once the optimum location has been determined and there are two further plants in Itsoseng and Polokwane which can be used for smaller contracts. The intention is to modernize the assets through the addition of new wet scrubbing systems and to make them more mobile.

Louis Wessie, who was MD of Atlas Asphalt, has joined Roadspan and with his knowledge of the business will take a leading role in the immediate rearrangement of the plants. As a priority, we will also be employing additional management to drive this part of the business and look for growth opportunities.