Austro Group Limited is a player in complementary markets in the industrial supplier and construction-related sectors. Unsurpassed quality, service and technical expertise and supplying the world's leading brands are core values of the group.
Since listing on the Johannesburg Stock Exchange (JSE) in February 2007, the group has made significant strides to realise these objectives. This includes entering into and consolidating its position in the generator sale and rental business through the acquisition of New Way Motor and Diesel Engineering (Pty) Ltd, and Neptune Plant Hire (Pty) Ltd, as well as augmenting its service offering in respect of the woodworking machines and tools market through the initial listing of Austro Woodworking Machines and Tools, and then by acquiring Gearing Moss Supplies (Pty) Ltd. Both these markets are particularly exciting and lucrative as they are key inputs into the construction and allied sectors which are showing exceptional growth.
The construction industry as a whole and Austro in particular, will benefit from the economic commitments from government and state enterprise investment programmes. The group believes its success will be underpinned by government’s preparation for the 2010 FIFA World Cup, which will see the upgrading of five stadiums, and substantial improvements to public transportation and related infrastructure in the host cities. On a provincial level, the Gautrain development, and ever-increasing demand for new residential and commercial properties, and their need for wood-related products, will also result in increased demand for Austro’s products and services up to and beyond 2010.
The growth in the economy has also highlighted key limitations of various infrastructural elements. One of which is the problem of power outages. South Africa’s existing power-generating capacity is insufficient to meet the growing demand for power in the country. As the economy expands, the lack of capacity severely impacts the day-to-day functioning of commerce and industry across the business spectrum. The most acutely affected are hospitals, municipalities, residential and commercial developments, and our harbours – where traffic is increasing due to growth in imports and exports. The recent boom in the mining sector has also seen an increased demand for free-standing and diesel generators used in mine slurries. Ultimately, hiring or buying generators will present the only viable alternative to actualize sustained economic growth in these sectors. This has created additional, lucrative markets for Austro acquisitions New Way and Neptune.
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