Insimbi flags sale of its plastics business

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The group is engaging with labour on the disposal of a business that accounts for less than 1% of its revenue, expected to be finalised by September

Small-cap Insimbi Industrial says it intends to sell its plastics business in a bid to streamline its operations, expecting all relevant processes to be finalised by the end of August 2022.

The group, valued at R400m on the JSE, has a plastics business that manufactures containers for various industries including the chemical, agricultural and food industries. It contributed less than 1% of Insimbi’s R6.06bnThe firm said on Wednesday it was looking to improve its efficiency and move away from “non-performing marginal activities”. Talks with labour unions have already begun, and the firm will now commence active engagements on a sale.

Insimbi also supplies alloys to the steel sector, as well as ceramic refractory linings to the cement, paper and pulp, steel and platinum industries. It operates from premises in Johannesburg, Cape Town and Durban, with local sales making up about 85% of revenue.

 

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