Witness Reporter
1 minute read
18 Jan 2008
00:00

Nkunzi snaps up Daytona Chemicals

Witness Reporter

Durban-based Nkunzi Chemicals yesterday announced its first acquisition, that of fellow Durban company Daytona Chemicals, less than a year after it was established as part of the dynamic black empowerment group, Nkunzi Investment Holdings.

Durban-based Nkunzi Chemicals yesterday announced its first acquisition, that of fellow Durban company Daytona Chemicals, less than a year after it was established as part of the dynamic black empowerment group, Nkunzi Investment Holdings.

The holding company was launched in 2006 to invest around R500 million in sizable companies in the “mid-cap” market, within three years. In February of 2007, Nkunzi bought Durban-based chemical company CIM and changed its name to Nkunzi Chemicals.

The company imports and distributes chemical raw materials for the detergent, personal care, household products, textile, paint, ink, water treatment and

pharmaceutical industries in South Africa.

Raw materials are bought in bulk from the world’s primary producers in Germany, Spain, China, India as well as in South Africa.

“We are extremely proud of our first acquisition. It opens up a number of new areas to Nkunzi Chemicals in the food, feed and general manufacturing industries and will increase our business by about 30% in terms of turnover. It also provides both customer bases access to an expanded range of products,” said managing director John Thompson.

Nkunzi Chemicals is the first company in this sector to be wholly black empowered, with management owning a 50% stake in the company.

The organisation currently employs 70 people countrywide with sales, warehousing and distribution facilities in Johannesburg, Cape Town and Durban.

The 23 additional Daytona staff will be absorbed into the operation immediately.