| INDUSTRY NEWS |
2Roads has expanded its ownership and participation in the process f low value chain by acquiring a 51% stake in Applied Welding Technology (AWT), a specialist welding and machining company capable of welding and machining a wide variety of metals, including basic carbon steels, low-a l loy steels, sta in less steels and aluminium. The official announcement was made at the 2Roads head of f ice in Illovo, Johannesburg, on 13 January this year. AWT is a natural fit into the 2Roads Group’s portfolio, as it expands its current ser vice of fering to the industr y. The acquisition is also in line with the group’s strategy of investing in businesses that deliver superior earnings and dividend growth over the long term. “AWT is a bolt-on acquisition in line with 2Roads’ process f low value chain approach. T he acqu isit ion ex pa nd s the service offering to various clients, especially within the high-pressure and high-temperature sector. It also positions 2Roads as one of the largest specialised welding and engineering f irms in the country,” says Kagisho Bapela, executive for strategy, mergers and acquisitions at the 2Roads Group. Bapela adds that the end goal is to offer a comprehensive asset integrity management of products and services to target clients. AWT adds to the current service offering and
2ROADS ACQUIRES STAKE IN APPLIED WELDING TECHNOLOGY complements existing products and services. In addition, the acquisition enables the group to establish a fully-fledged training centre that will offer skills development and vocational training, as the welding techniques performed by AWT are unique and in high demand.
Founded in 1987 by Johnny Hattingh and subsequently bought in 2005 by Ross and June Tudhope, AWT is an essential services provider, offering specialised welding for turbine valve components and rebuilding parts machined to tight tolerances. Only a handful of companies in SA have this capability. “The fit of AWT in the structure of 2Roads is an exciting development for the future growth of the company. The combination of the 2Roads Group of companies with the markets AWT serves, is a powerful one and will substantially extend the capabilities of the group, as well as providing synergies within it,” says Ross Tudhope, CEO of AWT.
(Above): Specialised technologies and techniques at work on specialised steel equipment. (Left): 2Roads conducts training from its premises, ensuring the handing on of specialised welding techniques.
“The acquisition enables the group to establish a fully-fledged training centre that will offer skills development and vocational training, as the welding techniques performed by AWT are unique and in high demand.” 10
PRECAST | ISSUE ONE | 2022
