SEPTEMBER 2007

Strategy

Building capacity

The acquisition of Concor in June 2006 has strengthened the construction capacity of Murray & Roberts at a time of new opportunity


Oprah Winfrey ona a tour site with Stephen Thompson		Concor built the Oprah Winfrey Academy for Girls At Henley on Klip

Concor has established its position as a leading business in the domestic construction market since 1948. The company has undergone a significant transformation following a troubled period in recent years and has been positioned to benefit from the current growth in infrastructure investment.

With a strong focus on the South African public sector infrastructure market and a proven track record in complex engineering projects, Concor has strengthened the capacity of Murray & Roberts at a time of significant opportunity.

Since the acquisition became effective, Murray & Roberts has embarked on a plan to position Concor as a major player in the domestic infrastructure sector.

Certain assets such as the resource base of the marginal underground mining business and concession investments have been relocated to Murray & Roberts while Concor’s reputable roads & earthworks business has assumed responsibility for the Murray & Roberts activities in this sector, and the toll road operator Tolcon has been relocated to Concor. The core construction business will keep the Concor identity and continue to be managed as an independent entity as the market segment it serves often differs from that of Murray & Roberts Construction.

Cobus Bester has retained his position as MD of Concor, while Murray & Roberts executive director, Keith Smith, has been appointed chairman of both Concor and Murray & Roberts Construction to ensure that each business remains focused on its target markets, with an integration of resources where necessary.

Concor’s order book is R1,8 billion (2006: R1,5 billion), of which 70% is for the current financial year to 30 June 2008. This reflects the significant growth trend in the domestic building and civil markets.

LEADERSHIP TEAM


Cobus Bester: Managing Director	Jerome Arendse: MD, Tolcon	Jean Charoux: MD, Engineering	Paul Deppe: MD, Technicrete	Trevor Robinson: MD, Civils & Open cast mining


Dick Taplin: MD, Plant	Frik Venter: MD, Roads	Brad Wantenaar: MD, Building	John Millward: Project Development	Chris Scholtz: Financial Director


Dirk Theron: HR Director

OPERATIONS

BUILDING

The Concor building operations have undergone a successful transformation in recent years, exiting all but the Gauteng market and strengthening management and risk management capacity. Concor recently completed the Bel Air shopping centre in North Riding, the Oprah Winfrey Academy for Girls at Henley on Klip and the International North Pier at the OR Tambo International Airport. Work commenced on an enabling contract to build the multipurpose head office complex for the Department of Foreign Affairs in Pretoria which will be let under a PPP concession contract if financial close is achieved.

CIVILS

Concor is a leading civil engineering contractor in the mining and industrial sector. The business has strengthened its focus on heavy civil engineering, road building and infrastructure development with its specialist capacity to build incrementally launched bridges and sliding structures.

Major resource beneficiation and industrial programmes offer significant opportunity in the domestic civil engineering market and Concor has recently completed the Dwaalboom expansion project for PPC and work for Anglo Platinum at PP Rust.

Major opportunities in the power sector have started to materialise as Eskom commences the roll-out of its first phase R150 billion fiveyear capacity expansion programme. Murray & Roberts operations, including Concor, are prepared for a leading implementation role in the expansion of the Matimba power station and the Mmamabule power station in Botswana. In addition, Concor will tender in joint venture with Hochtief, Murray & Roberts Construction and Murray & Roberts Cementation for the Braamhoek pump storage system.

ROADS

Concor Roads has built a reputation as a professional and competent road building company in Southern Africa. While the business focuses on the construction of major road projects, its core competencies extend to all earthworks and mining infrastructure related projects.

Concor Roads is currently working on road contracts valued at R1,1 billion, including bulk earthworks for the Sishen and Assmang projects, Gautrain and the Voorspoed mine. The business has also been awarded the expansion of the railway between Sishen and Saldanha for Transnet.

Having completed an exploration tunnel for the Braamhoek pump storage system, Concor has submitted a tender in joint venture with WBHO for work on two dams that will supply the power generation system.

ENGINEERING

A reputation for precision work, attention to detail and meeting strict deadlines has secured Concor Engineerng preferred contractor status with key clients. Concor is currently installing four platinum concentrators as part of the major producers’ expansion programmes.

OPEN CAST MINING

Concor’s open cast business focuses on steep dipping hard rock mining. Concor has a number of long term contracts in this market and new contracts will require significant capital expenditure due to the increasing depth of the pits.

TECHNICRETE

Concor Technicrete is the largest cement paving manufacturer in South Africa with 14 factories throughout the country. It produces paving blocks, roof tiles and masonry products for the commercial building market and cementatious products for underground mining.

The business will undertake a significant upgrade of its facilities and capacity in 2008, including possible geographic expansion, to entrench a market leading position. Acquisitions concluded over the past two years have been bedded down and will add value to the business in future. Other acquisitions in the masonry stock brick and tile sectors are under consideration.