Afrimat says the role of its integration office, Pieter de Wit has come to an end after a successful assimilation of the South African assets of Lafarge, which it acquire for $6 million. Mr de Wit goes back to his position of CFO but will be joined by Mr Andre Smith who assumes the role of his deputy after acting in the role during the integration process. CNBC Africa is joined by Andries van Heerden, CEO, Afrimat.
According to the company's viewpoint, Afrimat says the role of its integration office, Pieter de Wit has come to an end after a successful assimilation of the South African assets of Lafarge, which it acquire for $6 million. Mr de Wit goes back to his position of CFO but will be joined by Mr Andre Smith who assumes the role of his deputy after acting in the role during the integration process. I'm now joined by Andries van Heerden, the CEO at Afrimat. Andries, thanks so much for your time. So quite a lot of, I think, question marks, excitement and also intrigue regarding the new role that you have created, new role of deputy CFO. Perhaps before we go there, let's dial back to the successful integration that the company is reporting right now regarding the Lafarge assets. Just take us through how that process unfolded. Well, Fifi, it was quite a big project for us. It's the biggest project we've ever attempted. So we had a comprehensive project plan that went through the whole organisational structure, the financial systems, the operational side of the business. And most of that work is now either completed or so well advanced that the projects will run in a way that we don't need Peter to be there full time. Obviously, we'll still be very closely involved with the whole integration and make sure that the business keeps on performing. But it was a big project and fully integrated. And the project plan has come to a point where Peter can now go back to his role. Sure. I mean, we have heard other companies also report a sort of a similar story when it does come to integrating two businesses across the positions lines with certain duplications and positions, but also across the cultural lines. I mean, you're bringing in another entity in an established unit and there's different cultures in assimilating that. You spoke about the fact that most of the work has been done and the work that still remains to be done can be done with Peter going back to his former role. Maybe you take us through that and how long you are expecting sort of the remaining work to take. So you touch on a very important part of an integration and that's the cultural aspect. And that work is never done. Even in our existing business, we continuously work on our culture, make sure that we maintain the culture, the desired culture in the business. And that work will go on. And there's a very strong focus and once again, a very structured plan around that. And we have a dedicated team to make sure that the culture is integrated. And I think we've made a lot of strides on that and it's going a lot better. The biggest part of work that's still outstanding is in the information systems where we're actually integrating the information systems onto our platforms. There's still some work that will probably carry on for another, I would guess, another three, four, five months until that is done. But once again, we've got a dedicated team on that. They know what to do and they are progressing well and we'll just manage it as part of our normal management structures. Okay, so going back then to the roles. So Peter goes back to his role, effective immediately, but now has a little help from André. So walk us through, I mean, the KPIs, exactly who will be doing what right now with Peter having a deputy? So Peter will remain the CFO and have the normal KPIs of a CFO. André's role is a little bit more focused to the detail. There's some work where we think we can get some benefit from managing our treasury, for instance, more accurately, having a very tighter control on some of our cost management processes and things like that. So André's role will be a little bit more detailed, a little bit more focused on some of the day-to-day operational stuff, where Peter and I are more focused on the strategic longer-term type of initiatives. All right. Before I let you go, just one last question on how you're feeling about 2025. Various parts of the business did succumb under pressure in 2024. But I had a chat earlier with another CEO of Karoo and he was talking about the local operations here in South Africa, saying he's extremely excited about South Africa. How are you feeling about the year, sir? It's a very interesting year ahead of us. Obviously, with the Lafarge integration now almost behind us, we're gaining very good momentum on the aggregate side. The business is already doing very well. The cement business is now turning and starting to contribute. Our anthracite business, the impact of the Mozambique riots had a bit of an impact towards the end of last year. We think that we've got some plans, even if Mozambique were to be a problem, we can export through other sources. I'm quite positive about that. On the iron ore side, on the domestic side, we're working very closely with Arsenal Metal to plot the new road ahead. I think there's some interesting and some exciting opportunities for us in there to actually partner with them on certain aspects. All in all, I'm quite positive about the year ahead. I think nothing is going to be easy, but it never is. It's about focus and about executing and about innovation. I think the team is ready for it. Sure. My producers are going to not be happy with me, but just one last question, just in reference to Arsenal Metal, you're talking about working with them on a new plan. Of course, we are seeing that they're also going through the most right now, closing a couple of plants on their long steel business. Does that impact you at all? It has a very, very limited impact on actually only on one of our dolomite mines, but the main supply of iron ore, we do not supply Newcastle, we supply Funnelvale Park, so there's no direct impact at the moment. Okay. Andries, thanks so much. We'll leave it there. So, catch up at your next announcement, perhaps the results report. Andries F. van Heerden, CEO at AFRIMAT.
Theme: Afrimat's successful integration of Lafarge assets and positive outlook for 2025
Afrimat, a leading construction materials group in South Africa, recently announced the successful completion of the integration of the South African assets of Lafarge, which it acquired for $6 million. The company's integration office, led by Pieter de Wit, played a crucial role in ensuring the smooth assimilation of the Lafarge assets into Afrimat's operations. With the integration process now concluded, Mr. de Wit will resume his position as CFO, while Mr. Andre Smith will take on the role of deputy CFO after acting in the position during the integration period. In an exclusive interview with CNBC Africa, Andries van Heerden, the CEO of Afrimat, shared insights into the integration process and the company's outlook for 2025. Van Heerden highlighted the extensive project plan that was implemented to integrate the organizational structure, financial systems, and operational processes of the acquired assets. He emphasized the importance of addressing cultural differences and the ongoing efforts to ensure a seamless transition. Van Heerden acknowledged that while most of the integration work has been completed, there are still some tasks remaining, primarily focused on integrating information systems onto Afrimat's platforms. He expects these remaining tasks to be finalized within the next three to five months, with a dedicated team overseeing the process. With the integration nearing completion, Afrimat is optimistic about the year 2025. Van Heerden expressed confidence in the company's performance, citing the positive momentum in the aggregate and cement businesses. Despite challenges in the anthracite business due to external factors like the Mozambique riots, Afrimat has contingency plans in place to mitigate potential disruptions. Looking ahead, Afrimat is exploring new opportunities in partnership with Arsenal Metal on the iron ore front. Van Heerden highlighted the collaborative efforts to chart a new path forward and capitalize on emerging prospects in the industry. He emphasized the importance of focus, execution, and innovation in navigating the evolving business landscape. When asked about potential impacts from Arsenal Metal's recent plant closures in their long steel business, Van Heerden noted minimal impact on Afrimat's operations, with only one dolomite mine being affected. Overall, he remains optimistic about the company's resilience and readiness to tackle the challenges and opportunities that lie ahead in 2025. In conclusion, Afrimat's successful integration of Lafarge assets demonstrates its strategic vision and operational efficiency. The appointment of a deputy CFO reflects the company's commitment to enhancing financial management and operational control. As Afrimat looks towards a promising future in 2025, stakeholders can expect continued growth, innovation, and strategic partnerships to drive sustainable success in the construction materials industry.
"It's about focus and about executing and about innovation. I think the team is ready for it."
Afrimat, Lafarge assets, integration, construction materials, South Africa, CFO, deputy CFO, 2025 outlook, CNBC Africa, Andries van Heerden