African Oxygen Limited (Afrox), sub-Saharan Africa’s leading industrial gases and welding company, has expanded its operations in Mozambique to support growing customer and regional demand.
Under the expansion strategy, The Linde Group member has established a new, upgraded headquarters hub in the Machava Industrial Area in Mozambique’s capital Maputo.
The 8,600 m2 area will be the backbone of Afrox’s operations in the African country, housing a sales centre, storage facilities for cylinders and hardgoods and filling facilities for oxygen (O2).
It will provide full sales services, stock, equipment and technical support for Afrox’s branches in Beira and Tete, central areas in the African country, and will offer large-volume onsite installations and bulk gases, cylinder gases, refrigerants, helium (He), carbon dioxide (CO2), medical gases and safety products, gas equipment, welding products and ancillary safety products.
With sufficient space for future expansion, it is understood that Afrox has further plans to extend the hub’s services to include a workshop for cylinder inspection, maintenance and painting, as well as filling services for argon (Ar) in the near future.
The company also plans to build a demo centre at the location, which will be used to showcase product usage or applications.
Investment in the new site was initiated after Afrox’s business needs and customer demands outgrew its former rented location, which the company has now closed permanently.
Prince Tsuro, Managing Director for Afrox Mozambique, said that the new site reflects the company’s commitment to fostering long-term relationships with its customers in Mozambique.
He added, “Our headquarter hub will benefit a wide spectrum of sectors in Mozambique ranging from mining, agriculture, sugar mills and transport through to manufacturing and fabrication, the hospitality, medical sectors and the future needs of the liquefied natural gas (LNG) industry and its spin-off industries.”
Afrox marks its 90th year in business in 2017. In its 2016 fiscal year financials, the company inched its overall revenue up by 1% to reach ZAR 5.53bn ($420m) despite the weakness in the South African economy and supply constraints seen in the region’s CO2 sector.
Around 14% (roughly $50m) of this total revenue was generated through its operations in ‘Emerging Africa.’ As James Barr, Senior Business Analyst at gasworld Business Intelligence, highlighted, “Afrox’s financial growth in the Emerging Africa region was flat in 2016, so this new investment should help the company improve its performance in the region.”