Company Annpouncement - Ampcontrol Pty Limited (Ampcontrol) today announced it has ceased operating from its base in Johannesburg, South Africa. The shareholders of Ampcontrol Africa Pty Limited have resolved to close the business effective immediately and will work with the relevant authorities to ensure the closure is conducted in an orderly and efficient manner. The South African business has been underperforming for some time and has required significant funding from the Ampcontrol Group to operate. The expected turnaround has not materialised nor is it expected in the near term due to several factors including the current global weakness in commodity prices and resources investment and the instability and uncertainty present in the South African market.
Mr Rod Henderson, Ampcontrol CEO, commented that the Ampcontrol Board recently determined that Ampcontrol Group would not continue to fund the South African operation at the cost of missing attractive opportunities for investment elsewhere in the Group.
“We have invested significantly in our South African business however the business has been underperforming and the expected turnaround has not materialised and is not expected in the near term”, said Mr Henderson. “This is a difficult market to operate in with significant uncertainty and instability, such as the major strike action in July, and this has been compounded by the global weakness in commodity prices and resources investment that is currently being experienced”.
“Ampcontrol is committed to its remaining operations across Australia and internationally (including in Botswana) and we are focused on working in sectors and markets where there are current and real opportunities for our technology and expertise. Our investment will be concentrated on these areas because they provide the most assured growth and returns for our business”, said Mr Henderson.