Siseko Njobeni
12 March 2010
Johannesburg — PETROCHEMICALS group Sasol yesterday formally launched a R8,4bn wax expansion programme that, when complete, will double the production of hard wax in SA.
The project was among those that Sasol unveiled when it released its interim results for the six months ended December.
The project, part of Sasol's R14bn expansion programme, is the company's response to growing demand for wax.
Andre de Ruyter, Sasol GM for the chemicals cluster, said yesterday that the project, situated at Sasol's Sasolburg plant, was "market- driven". He said there had been significant growth in demand for wax.
Sasol Wax is the world's leading producer and marketer of synthetic and petroleum-derived waxes, with factories in SA, North America and Europe. Sasol Wax SA MD Louis Fourie said the company's total global market share of wax was 10%.
De Ruyter said most of the production from the plant would be destined for the export market, especially Germany.
About half of the exports from the expanded plant will be to Europe and 20% to the US.
De Ruyter said the increased production would, however, only maintain Sasol's market share.
He attributed that to the growing size of the market. In the six months ended December 31, Sasol reported an increase in wax sales in the European market.
Wax applications include adhesives used to seal cereal boxes. Sasol Wax also manufactures petroleum jellies and liquid paraffin.
De Ruyter said the first phase of the project would be commissioned in 2012.
The first phase of the project will increase capacity by about 40%, Sasol said . The rest of the project would be completed in 2014.
"It is a tight schedule," De Ruyter said. The project was in line with Sasol's long-term plan to grow the chemicals business, he said.
The expansion project would create about 3500 job opportunities during construction, and between 70 and 100 permanent positions, De Ruyter said. He said most of the employees would be drawn from the local community.
Sasol's share price slumped 1,61% to R282,38 yesterday.
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