Entrepreneurship is vital for any economy to thrive. In order for people from the previously disadvantaged background to be integrated into the country thriving economy, we need to build our own mainstream business and future over and above what currently exists.
We need to move away from being beggars, wishful thinkers, armchair critics and or back seat drivers and take our rightful position taking advantage of the existing and enabling BEE legislative framework which presents us with programmes designed and meant to encourage and facilitate initiatives aimed at creating wealth and jobs while eradicating poverty, again a process which sees people from previously disadvantaged background getting involved in the country’s mainstream economy in a meaningful and sustainable manner.
It is against the above background that a series of meetings ensued where Johan Kolesky, Ian Hattingh of Xtreme Profiling and Rhoda Masendo together with Sydney Kunene representing the BEE entity had to finally agree to the 50/50 partnership in the existing Xtreme Profiling which will include Eastvaal Engineering as part of the deal. The above decision was prompted by a number of positive facts and factors prevalent in our country
What Informed Our Decision
¨Our belief is that a niche market for our business has always been there and continues to exist in a much bigger way as a result of the following:
¨ Governments decision to invest billions and billions of rands in the country’s infrastructure development.
¨Strategic location of our business in the Middelburg/Witbank area in the Nkangala Region (Highveld) which is Mpumalanga’s economic hub.
¨The presence of Columbus stainless steel (The world’s third biggest stainless steel producer) Middelburg Ferrochrome, Thos Begbies, Barloworld’s plant.
¨The presence of big mining operations run by Anglo Coal, BHP Billiton, Estrata followed by smaller operations run by Exarro, Eyesizwe, Shanduka and others.
¨The presence of most Eskom’s Power Station in the Nkangala Region which include the Kusile Power Station currently under construction with the total cost of ± R 110bn with Eskom insistence on local content.
¨The launch of the R1bn found for BEE by the IDC sometime last year played a decisive role in our decision of course being mindful of the requirements that go with the latter. The fact that the equity is shared equally by the four partners bears testimony to the latter which also serves as both an incentive to and commitment by all four partners ensuring the envisaged growth and sustainability of the entity.
Xtreme Profiling currently owns Eastvaal Engineering which will be collapsed into the new entity. The latter will undoubtedly add value to Xtreme Profiling rendering it more profitable and sustainable (This will form part of the shareholders agreement currently been finalized