Multinational explosives and chemicals group AECI has finally secured a critical skills visa for its German national CEO Holger Riemensperger, seven months after his appointment.
Riemensperger was appointed with effect from May, replacing Mark Dytor who retired a year earlier after spending nearly 40 years with the group, including 10 as CEO.
However, hurdles in securing a critical skills visa from the home affairs department meant he spent the first six months of his tenure working from his home country.
AECI roped in specialist lawyers to support his bid for the visa. It said on Wednesday that the bid was successful.
“As I move to SA with my family following the issuance of my critical skills visa, I am extremely excited at the possibilities for the group and look forward to working closely with this group of seasoned executives into the future,” said Riemensperger.
“I am confident that the structure as it stands puts us in good stead to continue to build on the legacy that has been created and to continue to benefit the communities and societies we operate in.”
In November, AECI announced a major restructuring over the coming 18 months that will see a return to the group’s core mining and chemical sectors.
In outlining its vision for where the strategy will take the company, Riemensperger said previously that the AECI of the future will focus on these areas and divest out of noncore businesses. He said the business would look towards growth in Asia-Pacific, South America and North America as it drives its ambition to be among the top three on a global scale by 2030.
AECI’s chemicals division will also be reorganised and repositioned to enhance its cash-generation capabilities through prioritising high-margin products and services.
The CEO said that underperforming units will be better served under other ownership. Remaining businesses including Much Asphalt, Animal Health, Schrim, Sans Fibers and Beverage — which are not core to the identified growth levers — will be exited “in an orderly manner and over a period of time”.
“This cluster is delivering a return on invested capital of only 9%,” said Chronux research analyst Rowan Goeller on the noncore assets. “Management believes there is a limited value-add that AECI can provide to improve returns.”
Goeller said that as ambitious growth targets to double profitability of the core businesses by 2026 have been set, a key part of this is becoming the clear third-biggest globally in mining explosives by 2030 behind Orica and Dyno Nobel.
He said that future growth areas for AECI after the restructuring will be mining geographic expansion, technology and intellectual property for agriculture and water treatment as well as opportunistic mergers and acquisitions.
“The refocus on core strengths should result in a cleaner business with a clear mining focus,” said Goeller.
On Wednesday, the JSE-listed group said it beefed up with the introduction of four new roles.
These include the posts of chief transformation officer, which will be occupied by former acting CFO Rafael Fernandes who will be responsible for overseeing the rollout of the strategy across all businesses; and group COO to be taken up by Denvor Govender who will be in charge of operational and manufacturing optimisation.
Dean Murray was announced as the executive vice-president for AECI Chemicals. However, the search is still on for the appropriate candidate to take up the role of executive vice-president of AECI mining, it said.
The company said the improved management structure will allow it to be more aligned to a corporate business that will enable the delivery of its strategic ambition to double the profitability of its core business by 2026.
“The group management structure has also been adjusted to reflect the changes in the business and to drive empowerment, accountability and quick decision-making,” said the group.
AECI’s share price was 1.56% higher at close of trade on Wednesday at R106.15.
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