A Czech-based cyanide chemical firm, Draslovka Holding Company, has acquired Sasol's sodium cyanide business which is located in Sasolburg for R1,46 billion.
The company specialises in cyanide specialities and agricultural chemicals that include next-generation fumigants and biocides.
Draslovka describes itself as a family-owned private company focused on the production of speciality chemicals and proprietary manufacturing technologies, with over 100 years experience of operating within the hydrogen cyanide (HCN) production and chemistry sector.
Cyanide is a substance consisting of Carbon and Nitrogen (CN). CN-based substances have a large variety of usages in mining, agriculture, automotive, electroplating & surface treatment, pharmaceutical intermediates, which are used in producing many products of daily use.
According to the company, the acquisition forms part of its international expansion strategy and will be its first major investment in the continent.
Draslovka chief executive officer Pavel Bruzek, said the company believed the South African market offered significant long-term opportunities and investment, both strategically and culturally.
“This acquisition will allow Draslovka to not only better serve the South African mining and associated industries but, in the longer term, enhance South Africa’s exports and provide greater access to Draslovka’s leading agricultural materials.
“From a wider perspective, the announcement represents the first step on our global ambitions to take Draslovka to the next level, leveraging our leading technology to drive output, increase efficiency to better serve the mining and agricultural industries.
“In addition to our initial investment, we plan to invest a further $50m into modernising the facility, expanding the plant, and ensuring it meets our world-leading environmental standards. This will allow us to enhance our offerings into products that are currently imported into South Africa from other countries.”
Bruzek said the company is committed to maintaining the strictest and most up-to-date safety and environmental measures, and align with European regulations and international standards.
The company said, as part of its commitment to addressing the economic transformation objectives of South Africa, it had partnered with Navuka Investment Holdings, as its broad-based black economic empowerment (B-BBEE) partner. Navuka will own 25% plus one share of the SA operations.
Navuka CEO, Nathiera Kimber, said its partnership with Draslovka would allow it to play a more meaningful role in South Africa’s chemical industry.
“This opportunity will further expand our investments into this sector of the mining industry and allow us to play a meaningful role with Draslovka in servicing the mining sector, especially the country’s all-important gold industry.”
The transaction is subject to various regulatory approvals and is expected to be completed in the first half of the calendar year 2022.
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