Chemicals and mining explosives group AECI says it is on track to realise the R3-billion to R4-billion in proceeds from the sale of noncore businesses it forecast at the start of its far-reaching restructuring in late 2023, having signed deals worth R2.4-billion over the past few months.

The company has already received proceeds from the R1.1-billion Much Asphalt disposal and CEO Holger Riemensperger says that he does not foresee any difficulties in meeting the outstanding conditions precedent in relation to the sale of Schirm USA and its Food & Beverage unit.

AECI has entered into a R1.1-billion asset purchase agreement with Liberation Chem-Toll for Schirm USA, a chemical toll manufacturer with formulation, packaging and warehouse facilities located in north Texas and southern Illinois and will sell the Food & Beverage business as a going concern to a South Africa-based private equity company.

It has also closed Schirm Germany’s Baar-Ebenhausen site to avoid €3-million in future restructuring costs and environmental liabilities, and is still planning to sell the Schöenebeck and Luebeck sites in future, having repurposed the Wolfenbütte to be retained as a mining chemicals production hub.

AECI is also planning to sell its Sans Fibres, public water and animal health units, as it refocuses on growing and internationalising its core chemicals and explosives businesses.

Riemensperger says with transactions of R2.4-billion either completed or close to completion, AECI is closing in on the lower end of its expected proceeds range of R3-billion, despite describing market conditions as favouring buyers over sellers.

The outstanding disposals could be either finalised or announced over the coming 12 months, but Riemensperger tells Engineering News that his priority is to realise fair prices for the remaining businesses, especially given the efforts it has made to improve their performance and prospects.

Should offers fall short of fair value, the group would wait for better offers to arise, he confirms.

In parallel, he says good progress is being made in growing the core international businesses, particularly in the six key markets of Australia, Botswana, the Democratic Republic of Congo, Ghana, Indonesia and Zambia. These markets make up 95% of the JSE-listed group’s mining explosives business, with South Africa contributing the balance.

During the six months to June 30, AECI recorded three contract renewals with major mining clients in those countries, where strong sales helped offset the operational problems experienced at Modderfontein, in Gauteng.

Modderfontein experienced an unprecedented 16 power interruptions during the first four months of 2025, while it also declared force majeure, owing to inadequate supply of an input material known as lead azide.

While South Africa remains a key production hub and market, Riemensperger confirms that the future of the historic Modderfontein site is under review, with a decision expected in November.

During the interim period, AECI reported a 134% period-on-period rise in group headline earnings a share of 604c and declared a 100c-a-share dividend, on the back of a 24% rise in earnings before interest, taxes, depreciation, and amortisation of R1.6-billion.

The group expects to continue its positive performance during the second half, but Riemensperger says the results will lag the financial aspirations set as part of the restructuring, largely owing to the underperformance of Modderfontein in the first half.