Afrox confirms cost cuts at May AGM


Sub-Sahara’s leading gases and welding company, African Oxygen Limited (Afrox), has confirmed operational and structural changes to deliver R200 million (approx. $23.8m) in cost savings by the end of 2009.

The measures announced at its 7th May AGM will see a reduction in Afrox’s filling sites, the elimination of minimally profitable or slow moving product ranges, and optimisation of routes to market.

In addition, a review of all outlets is complete and the closure of branches that do not meet minimum return thresholds is underway – while the company notes that a head-count reduction of almost 15% will be achieved by the third quarter.

Mitigating the impact of the global economic crisis and minimising outlay during a time of uncertain forecasting are cited as the reasons for the structural changes.

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