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Growth of Sasol’s Explosives business being explored through possible partnership or joint venture

Date: 
22 July 2019

Johannesburg, South Africa – In 2017 Sasol commenced a detailed asset review to ensure all assets in the company’s global portfolio deliver against stringent financial metrics.

In line with this review, Sasol’s explosives business was identified as having tremendous growth potential that could be unlocked through collaboration opportunities, including the possibility of partnering with a world-class explosives brand.

Following a stringent evaluation process, Enaex S.A., a subsidiary of the Sigdo Koppers Group, was selected as Sasol’s preferred partner to engage with, for the possible formation of a joint venture, with the partner taking responsibility for the management and operational control of a new joint venture, should it be formed.

The preferred partner was selected based on its track record and potential to create a best in class technical service supplier, offering a one-stop-shop for explosives and blasting solutions.
As part of the exclusive negotiations phase, the potential partner will be required to continue to ensure reliable and sustainable ammonia off-take for Sasol South Africa, maintain Sasol’s leading safety record, and finally, be in a position to offer existing Sasol explosives employees career opportunities in a truly global, focused and growing explosives business.

This transaction is subject to successful negotiations with the exclusive partner, and external approvals, including that of the South African Competition Commission.

 

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