A joint venture telecoms cable company, formed by Altron and Reunert, gets off the ground today.
An announcement made by the JSE-listed companies says the jointly-owned company will be officially known as CBi-electric Aberdare ATC Telecom Cables and will operate from Reunert's existing North West Province facility.
The merged company is expected to have revenue of about R400 million and will comprise Reunert's telecoms cable assets, held in its ATC subsidiary, as well as Altron subsidiary Aberdare Cables' telecoms cable interests.
The official launch of the firm follows conditional approval from the Competition Tribunal last month. The tribunal said the approval was conditional on Altron subsidiary Aberdare disposing of its 33.3% stake in Kewberg Cables and Braids to an independent purchaser.
In a statement to shareholders, both listed parent companies say the new company will be "capable of producing the entire spectrum of copper and optical fibre telecommunications cables".
Aberdare's Port Elizabeth operation will be moved to Brits over time, they note. "With the available capacity, the new company will be able to serve the local fixed-line telecom operators, as well as pursuing opportunities outside SA, specifically in Africa."
Koos Vorster, MD of CBi-electric: Telecom Cables, will head up the new operation.
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