Everite spearheads growth in sustainable construction

A respected leader since 1941, Everite Building Products (Everite) has evolved through a series of owners, the most recent being its acquisition by majority shareholder and Mauritian investment entity Lonsa Group Limited (Lonsa). Robin Vela, Lonsa’s chairman, expands on the benefits for the South African and international markets. By Alastair Currie

Lonsa Everite, the specialpurpose vehicle incorporated to execute the approximately R600 million acquisition, comprises Lonsa (55.49%), Everite Management (Pty) Ltd (14.5%), Legacy Africa Capital Partners (Pty) Ltd (25.01%), and Muvhango Netshitangani (5.0%).

The deal, effective 1 May 2021, includes Everite Group’s assets, businesses and companies (including Sky Sands and Sheetrite), as well as the purchase of Everite’s production facility in Kliprivier, Gauteng. Previously part of Group Five, Everite was sold as a going concern.

For the local market, it’s a new lease on life for Everite and its more than 500 employees. The company is a leading manufacturer of fibre cement and allied products for the commercial, industrial and residential markets. Within the product mix, Nutec is a household Everite brand for a range of ceilings, internal and external cladding, and roofing systems.

As an early adopter of alternative building technologies, Everite also holds an exclusive licence in South Africa from the Xella Group in Germany to manufacture Hebel autoclaved aerated concrete (AAC) block and panel products. This technology has been commonly used worldwide for more than 80 years, with a growing application footprint, including landmark developments in Dubai and South Africa. This is due to AAC’s exceptional green building qualities, high speed of building, and superior technical properties.

“As the only large-scale fibre cement manufacturer in South Africa, and sub-Saharan Africa, Everite is in a unique position to service building and social infrastructure requirements in the region,” says Vela. “This is backed by some 50% excess production capacity on idle plant that is ready to run as demand increases. As we ramp up, this will drive expansion on the continent, which currently only accounts for 10% of Everite’s sales,” he continues.

“Lonsa would also like to position Everite more aggressively as an enabler and delivery agent for UN Sustainable Development Goals (SDGs) – infrastructure, housing, employment, poverty alleviation – and, in doing so, make it an attractive participant for the capital committed to infrastructure in South Africa and Africa by the G7 and leading economies,” he adds.

Alongside fibre cement, key growth is expected in AAC alternative building systems, supporting South African government initiatives that include the roll-out of essential projects in the housing, education, health and sanitation markets.

Industry engagement

To facilitate this process, Everite is engaging with government entities, South African built environment professionals and contractors to present the business case. Industry alliances include a partnership agreement with Sanjo Fabtech Sterling Building Technologies, which forms part of Sanjo Construction (Sanjo). The former is a technology holder and custom manufacturer of internationally developed modular loadbearing construction systems suitable for use in structures up to six storeys high, servicing all sectors of the market – from low-cost to high-end applications.

Within the social housing market, Sanjo has recently constructed numerous multi-storey buildings. These include developments in Tembisa, Tshwane and the West Rand.

Everite has also formed a partnership with one of its shareholders, Instratin – a 100% black-owned property development, investment and asset management specialist focusing on turnkey solutions. Instratin is currently investigating the development of several high-rise buildings on behalf of the Social Housing Regulatory Authority within Durban and Johannesburg.

The conversion of the Absa Tower in Johannesburg’s CBD employed autoclaved aerated concrete during its conversion from office to residential accommodation

AAC advantages

Between two to ten times faster than conventional construction, AAC passes on major savings for a wide range of loadbearing and non-loadbearing applications. Its lightweight properties and superior strength are core

Everite is a direct enabler of infrastructure and affordable housing development, and an indirect contributor to the creation of employment and alleviation of poverty in Africa.”

Autoclaved aerated concrete was extensively used during the construction of The Leonardo in Sandton

features, significantly reducing foundation and structural costs, while providing excellent fire resistance (being non-combustible), acoustic and thermal insulation properties.

According to Xella, insulation performance is five times greater than that of clay brick of the same thickness. From a weight perspective, AAC also ticks all the boxes. This is underscored by the fact that the typical brick and mortar wall load is approximately 350 kg/m2 compared to AAC blocks at around 90 kg/m2, which comes from the 600 kg/m³ density at which the product is fabricated.

Xella’s Hebel AAC products are made from sand, lime, cement and water, with aluminium powder acting as a foaming agent to form a homogeneous cellular structure known as calcium silicate hydrate. This is also a green product, since the manufacturing process consumes approximately 70% less energy compared to clay brick production. AAC offcuts at the factory can also be recycled.

Critical to the manufacturing process is the autoclave curing cycle. This not only fully cures the cement in a highly accelerated 12-hour curing process, but significantly improves the chemical structure of the raw materials to create a unique cementitious phase called tobermorite – specific to both fibre cement and AAC manufacture – giving these materials superior properties.

The incorporation of stained Nutec fibre cement planks adds a key aesthetic element for a building entrance Fibre cement cladding forms a distinctive feature of the Nedbank head office in Sandton

South African flagship projects

So far, the various alternative building technologies supported by Everite have been employed for various landmark projects in South Africa. These include The Leonardo, a mixed-use development in Sandton, which is currently the tallest building in Africa at a height of 234 m, where AAC was used as infill walling. Within Johannesburg’s CBD, the conversion of the Absa Tower office block from commercial to residential accommodation is a further example in a growing list of local AAC applications.

The conversion of the old ENS building in Sandton, which is now the Sky Hotel, extensively used Sanjo infill walling products, as did the conversion to high-end residential units of the Department of Home Affairs building in Fredman Drive, also in Sandton. It’s common knowledge that the advent of Covid-19 has had a negative impact on commercial office space, brought on by a shift to a working-from-home culture. All indications are that this trend will remain a permanent feature, motivating property owners to rethink alternative uses like housing and student accommodation. Both are in huge demand in South Africa.

Everite is receiving a growing pipeline of enquiries from landlords and potential developers about how AAC can form the basis for future building reconfigurations. These projects also dovetail well with Everite’s complementary Nutec range.

“Lonsa’s strategic goal is to provide the best return for our shareholders, clients and communities in the regions where we operate – while doing good. The driving force for our investments is not simply monetary return but also delivering a social dividend and contributing towards the attainment of the UN SDGs,” adds Vela.

“The acquisition of Everite is our contribution to promoting local content, growing South Africa’s manufacturing base, and helping to accelerate and lower the cost of infrastructure delivery in a sustainable manner. We are highly optimistic about what the future holds,” Vela concludes.

Robin Vela, chairman, Lonsa Group Limited and Lonsa Everite