Ricochet News

Realtile Gaz opens R10-million facility in Markman

SEPTEMBER 11, 2014
Realtile Gaz opens R10-million facility in Markman

Realtile Gaz opened its first facility in the Eastern Cape this morning, the company’s chairman Simphiwe Mehlomakulu saying he had been “encouraged by the positive growth prospects of the Eastern Cape, specifically those in Nelson Mandela Bay.

“Developing the gas supply market within a growing region made business sense for us,” he said, adding that the Port Elizabeth depot also “enhances our national footprint and forms a vital supply chain link with our existing Western Cape and KwaZulu-Natal facilities”.

The depot and cylinder-filling facility in Markman, Port Elizabeth “extends the national footprint of Realtile Gaz,” the company said in a statement.

In addition, it said, it “supports the company’s ability to meet the demands of key national customers, as well as its wide base of small and medium enter-prise customers”.

The R10 million investment has set up a facility in Markman with a storage capacity of 45 000 litres and there are plans for future expansion The company states that it will be able to fill approximately 400 cylinders of various sizes per eight-hour shift.

Realtile is the BBBEE alliance partner of Air Products and the company’s expansion into the Eastern Cape follows Air Products R300-million investment in an air separation unit in the Coega Industrial Development Zone.

Realtile Gaz General Manager Roger Rudd said this morning that the company’s expansion “aligns well with the Department of Energy’s objectives for the transformation of the energy sector”.

It also dovetailed with the department’s drive “to promote LPG as a safer, cleaner and more affordable alternative to the likes of paraffin for household use”.

Since acquiring Air Products LPG business in 2009, the company has grown considerably, subsequently acquiring Engen’s LPG business and a stake in Egoli Gas and opening depots in Germiston and Krugersdorp and Blackheath in Cape Town, in the process implementing downstream enterprise development for small black-owned business.- metromin


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