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In a somewhat slower day for corporate news, Volkswagen announced a hefty new spend at its plant in Kariega. Afrimat slipped a little despite flagging a hefty earnings rise, while Purple Group surged after reporting record results. In international news, PricewaterhouseCoopers (PwC) has rejected allegations contained in an anonymous letter that criticised its auditing of beleaguered Chinese real estate giant Evergrande.
Volkswagen Group Africa said on Tuesday it was embarking on a R4 billion investment in its manufacturing plant in Kariega in the Eastern Cape. The investment will be used to upgrade facilities in various areas in preparation for the addition of a third model to its production line-up from 2027, it said in a statement. The third model, which will be an SUV, will be manufactured on the same production line as the Polo and Polo Vivo. "Plant Kariega is an important manufacturing plant within the Volkswagen Group production network," said Martina Biene, chair and MD of Volkswagen Group Africa. "Since 2011, Volkswagen has invested R10.28 billion in production facilities, manufacturing equipment, local content tooling and training of people."
Building materials and mining group Afrimat flagged a between 21% and 26% rise in headline earnings per share for its year to end February, though it didn't go into details in a brief statement. Earnings per share are expected to rise in a range of 11% and 16%. The group, valued at about R10 billion on the JSE, booked headline earnings of R662 million in its 2023 year. Afrimat's shares closed about 1.7% lower on Tuesday but have still risen by a quarter in the past year.
