JSE-listed gas and welding firm, African Oxygen (Afrox), on Thursday said it had won a R160 million ($14.8 million) contract to supply oxygen and nitrogen to Columbus Stainless (Columbus), Africa’s only maker of flat stainless steel products.
Brett Kimber, Afrox MD, said this was in fact an extension of an existing contract to 2021 with Columbus. The Afrox contract was awarded with effect from the 1st of this month.
“This also secures the future of Afrox’s Witbank ASU facilities and, with this, additional liquid to the South African market,” Kimber said, adding the supply would be via pipelines from its Witbank gas plant to Columbus’ Middelburg plant.
Columbus’ Dave Martin said the extension meant a continued supply at reasonable rates.
Martin added the contract also offered advanced consistency with several “back-up” alternatives to guarantee continued supply.
