Safripol buys majority share in compounder Xuba
SAFRIPOL has purchased a majority shareholding in Xuba Compounders, operating out of Krugersdorp.
The purchase, from a group of private investors for an undisclosed sum, took place during 2022.
The purchase forms part of Safripol’s polypropylene beneficiation plan where its aim is to add value and expand the use of Safripol’s base polymers to incorporate fillers, glass fibre and specialized flame retardants. Part of the strategy is to supply fully compounded PP grades, to the automotive component manufacturing sector and industrial sector. Many of these specialised grades have been imported up till now. The upcycling of post-industrial and post-consumer based waste materials is a further interesting development project at Xuba Compounders.
Established as recently as 2011, Xuba has developed and is now seen as one of SA’s leading manufacturers of mineral-filled polymer materials. Its main focus has been PP compounding. Xuba operates various lines at its 10,000m² site in Chamdor and is in the process of a capex investment programme.
“It is Safripol’s intention to increase output at Xuba by a multiple figure and grow the business in support of its PP customers,” a spokesman for the group said. The intention is thus import substitution as well, as most of the specialised PP grades have had to be imported.
Safripol also manufactures HD and PET and rPET at its plants in Sasolburg and Durban.
This is not Safripol’s first venture into compounding, as it has had compounding JVs in the past. Through Xuba Compounders, Safripol plans to add value to the standard PP grades it produces at its polymerization plant in Sasolburg, the spokesman added.