MD’s address

Dear customer

Since 2012, Afrox has been focusing its efforts on efficiencies and customer service in order to deliver premium products at competitive prices. Today, we clearly understand our role in your business – we must support your growth to realise our own.

As a result, we have been investing in research and development to bring you innovative global leading products, like the SmoothFlo regulator, as well as new ranges of safety equipment, arc equipment and welding consumables and much more.

We have also expanded our distribution capacity and our tanker fleet strength now stands at 106 following investments in 22new tankers in 2013.

In addition, R300 million is being spent on delivery of a new 150-tons-per-day atmospheric gas separation unit (ASU) in the Eastern Cape, the epicentre of South Africa’s motoring industry, withproduction expected to commence early 2015.

Our state-of-the-art R400 million KwaZulu-Natal (KZN) hub is well in the execution phase and we expect this to come on stream in 2016.

Our Special Gases arm has also upgraded its propellant plant and will commit an extra R12 million over the next two years to further increase plant and storage capacity. The upgrade will ensure improved quality and service to customers in the commercial goods personal care market.

We have also invested in a new central warehouse, which will enable us to maintain operations to world-class standards and provide the levels of service necessary to remain competitive.

In respect of service levels, last year our strong focus on workplace and distribution safety delivered a 64% drop in major incidents, leading to a decrease in vehicle damage/replacement costs and contributing to an improved delivery in full on time level of 93% for the year.

On top of that, independently monitored customer satisfaction levels for our National Customer Service Centre, orders and accounts management, stood at 95.2% for 2013 and we aim to further improve on that in 2014.

Our ongoing investments in our welding goods factories is also proving fruitful, with efficiencies and international manufacturing standards positioning our premier products to successfully compete with cheaper imports from abroad.

And that’s not all. We have a number of new innovations to make your life easier when interacting with Afrox. We have simplified the new customer registration processes and will be launching a new eShop, an online revolution for us, which will enable you to place orders, track deliveries, invoices and so much more, so keep an eye out for that.

I think 2014 will present all of us in business with many challenges and it is our intention at Afrox to make your challenges our goals and to support your business in every way we can.