China features on M&R's radar

Posted On Tuesday, 02 March 2004 02:00 Published by eprop Commercial Property News
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Murray & Roberts (M&R), the listed building, construction and engineering group, has placed China firmly on its radar screens.

Brian BrucePretoria - Murray & Roberts (M&R), the listed building, construction and engineering group, has placed China firmly on its radar screens.

Brian Bruce, M&R's chief executive, said last week: "With China about to dominate trade and investment affecting our sector over the next decade at least, M&R is actively seeking new opportunities to access the potential of this growing market."

Bruce said this did not mean the group had to go to China. But the group needed to be part and parcel of the process when China secured its supply lines.

Bruce said in the absence of natural resources, China had a great demand and, similar to what Japan had done, it was securing its supply lines.

"We don't see the internal construction market [in China] as a real opportunity for us, but we must position ourselves where China draws its resources from. We must get our strategy right to tap into this market." This would involve growth contracts to supply raw materials and value-added products to China.

Bruce said M&R's operations in southeast Asia/Australia and Canada/North America would be important in this context, adding that the acquisition of The Cementation Company Africa put M&R in the international market.

M&R reported last week that following a due diligence, it was finalising an offer for the acquisition of 79.13 percent of the shares of The Cementation Company Africa and 100 percent of the mining contracting business of Cementation in Australia and Canada.

This transaction remains subject to approval by the South African competition authorities and the JSE.

Bruce said M&R would have made a different decision about its strategy if all it was seeing was a stagnant Chinese market.

 

Last modified on Wednesday, 23 October 2013 20:01

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