Market Update - Corobrik appoints additional two black directors and is well poised for future growth

Corobrik appoints additional two black directors and is well poised for future growth.

Following a three year recession in which the construction industry faced a severe downturn, Corobrik’s Managing Director Dirk Meyer says the company has weathered the financial storm of the last 3 years extremely well.

“At our December 2010 board meeting Bertha Zwane, Corobrik Centre Manager at Lawley and Nomvuyo Mkhefa, Assistant Factory Manager Emalahleni were appointed Corobrik directors.   The influence of these two women, both of whom have had many years of experience in the business, will add to the already wide pool of knowledge and experience available at Corobrik.”

In addition, the company share trust, launched in 2008 when 26% of the company shares were placed in employee’s hands raising the control of the company in previously disadvantaged people’s hands to 51% allows the company to be fully participative in all aspects of the industry.

“We are confident that in the year ahead we will experience a gradual upturn with the return of confidence.  Although interest rates continue to remain low, the financial institutions are slowly relaxing their lending criteria for home buyers in the residential segments,” says Meyer.

“During the last upturn Corobrik re-invested some R400 million in its manufacturing facilities to increase capacity, improve yields and improve manufacturing efficiencies.”

“We have also focused investment in new technology to provide quality building materials for new markets where Corobrik has not been previously exposed.”

“In the paving market clay pavers are continuing to gain market share, and have proven to be the material of choice for enhancing hard landscape environments.”

This re-investment program, strong strategic focus on its core business and commitment to meeting customer needs has enabled Corobrik to achieve a solid financial performance in respect of ongoing profitability and strong positive cash flows, ensuring the long term sustainability of the business.

“Corobrik has benefited significantly from the introduction of new extrusion technology that has resulted in fuel savings for the drying and firing of products, this in the order of 20%.  This technology innovation and the wider use of natural gas for the firing our products, (natural gas nearly halves the carbon footprint of clay brick manufacture), is driving Corobrik’s embodied energy reductions.”

“Sustainability is inextricably linked to durability.  In conjunction with the thermal properties of clay brick products the company’s environmentally friendly status augers well for the future,” concludes Meyer.

Distributed on behalf of Corobrik (Pty) Ltd

For more information contact Dirk J Meyer on 031 560 3111.

Distributed by Shirley Williams telephone 031 564 7700 or 083 303 1663.