Safripol, SA’s polymer producer and marketer, is bracing itself for a lengthy battle with petrochemical major Sasol over its pricing, in a legal brawl that might reshape how monopolies charge their customers.
Safripol, a subsidiary of JSE-listed KAP, said it had been wrestling with Sasol regarding the price of ethylene, saying the dispute has now progressed to independent arbitration.
Ethylene is indispensable to Safripol’s operations, as it uses the raw material to manufacture polypropylene and high-density polythene.
At the crux of the dispute is contractual rights of the supply agreements between the parties.
Apart from the price of ethylene, Safripol is also in dispute with Sasol regarding the supply volume commitment in terms of the ethylene supply agreement, it said.
“On June 30 2025 Safripol lodged a complaint against Sasol at the Competition Commission and requested the commission to expeditiously investigate whether Sasol’s conduct, as the monopoly ethylene supplier in SA, is in contravention of the Competition Act,” KAP said in a regulatory filing.
“Safripol further applied to the Competition Tribunal for interim relief under section 49C of the Competition Act for the preservation of the status quo in terms of the ethylene supply agreement, pending the final determination of the complaint,” it said.
“The company and its legal advisers are confident of the company’s prospects in the various matters. In view of the complex nature of these matters it is anticipated that the relevant resolution processes will be lengthy.”
Safripol, which operates plants in Durban and Sasolburg, has become the second largest polymer producer in Sub-Saharan Africa, with customers in every sector of industry and business.
KAP acquired Safripol in 2017 for about R4.1bn.
SA companies are increasingly challenging the prices charged by monopolies.
Business Day reported on Monday that embattled steel major ArcelorMittal SA (Amsa) has accused freight and logistics group Transnet of abusing its market dominance and charging excessive prices to the detriment of customers.
To this end, Sub-Saharan Africa’s only primary steel producer has dragged Transnet to the Competition Tribunal for recourse.
However, the company faces a tall order in convincing the tribunal of the merits of its complaint against the state-owned freight and rail group after the Competition Commission threw cold water on the complaint. The decision by the commission forced the steel producer to resort to self-referral of its complaint to the tribunal.
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