COMPANY NEWS IN BRIEF

NuScale abandons plans in South AfricaIn the 1990s, South Africa started work on small, modular nuclear reactors that promised to be safer and cheaper than the likes of Koeberg Nuclear Power Station in Cape Town and the latest generation of plants being sold by the likes of Russia.In 2010, the country walked away from that project, which had grown too expensive and failed to attract enough investment.But the idea was a solid one, organisations around the world still maintain, and one to which American nuclear power company NuScale Power attracted significant funding from the US government for a plan to build such reactors in Cape Town.This week, NuScale abandoned plans for what would have been its first production plant, in Utah, because it had grown too expensive and failed to attract enough investment.The project could not reach an 80% subscription level from local governments with the Utah Associated Municipal Power Systems, its chief executive Mason Baker told local outlet Deseret News.Earlier this year, NuScale revised its long-held estimate of the cost of power it would produce in Utah. It believed generation would come in $89 per megawatt-hour (MWh), the company said, an increase of more than 50% on its previous calculations, even with a US$30 per MWh subsidy – and the billions of dollars in development costs and other support poured into the concept by the US government.-Fin24 Sappi shares jump as it maintains dividendShares in pulp, paper and packaging group Sappi jumped almost 8% in Thursday morning trade even after it reported a halving of profit for its year ended in September.Despite severe pressure as its customers reduced their inventory, the group still returned US$107 million (about R2 billion) in dividends and share buybacks, with the group saying it remains confident.After a record year in 2022, customers whittled away stocks built up in fear of shortages during Covid-19. Sales volumes for many of its major products came under severe pressure in 2023, with Sappi responding by curtailing production to manage the weak demand. Sappi said it expects the destocking to continue to weigh on demand during 2024 and that demand for graphic paper has experienced a permanent structural decline. Even with the lower demand, prices were still 14% higher than the prior year, though sales volumes fell by more than a third."What we are seeing is a rundown of the inventories as clients had anticipated paper shortages," CEO Steve Binnie told News24, adding:The big thing is the global economy, which is in bad shape. It was a reasonable year, but not as good as last year. This result is difficult to compare to 2022, which was a fantastic year for us. Sappi has responded to lower demand by cutting production, and further closures may be on their way. - Fin24Sephaku says market is seeing excess demand Cement maker Sephaku said on Thursday while South Africa has seen a pickup in activity in road construction, overall infrastructure development remains subdued, with excess capacity in the market and cost pressure cutting its interim profit by a quarter.Profit fell 26% to R19.7 million in the six months to end-September, the group said, even though revenue climbed almost a fifth to R627 million.The group's subsidiary Métier struggled amid an 11.5% rise in diesel costs between April and October 2023, and the cost of electricity increased by 18.7%, with CEO Kenneth Capes saying in the results that while the value of residential buildings passed declined during 2023, activity on civil construction projects and non-residential buildings increased."The rising cost of essential goods and services, coupled with higher interest rates, continued to erode the disposable income of consumers, maintaining pressure on the retail market," he said.Valued at about R255 million on the JSE, Sephaku's portfolio comprises a subsidiary, Métier Mixed Concrete, as well as a 36% stake in Dangote Cement SA, or SepCem.SepCem compensated for lower retail cement sales by supplying cement to the blender market and capitalising on opportunities to supply cement to industrial sectors, the group said, but despite price increases, margins came under pressure from an inability to recover input prices.-Fin24Watchdog to probe scandal-hit BHI TrustSouth Africa's financial watchdog has started to probe investment companies that advised or assisted their clients to put their funds into the scandal-hit BHI Trust. The trust's founder, Craig Warriner, is in custody on fraud charges after handing himself over to authorities last month.The 59-year-old investment manager from Bryanston is a former chairperson of the Old Boys' Association of St Stithians College in Johannesburg. He was reported to authorities by his co-trustee Christian Ashcroft, also a St Stithians old boy, who claims to have lost his entire inheritance after investing it in the trust.It's still unclear how much money flowed through the trust and what happened to it. Provisional trustees appointed to administer BHI last month found only R4.5 million in its bank account. The Financial Sector Conduct Authority (FSCA) has now widened its probe beyond Warriner and the trust."The main focus of this part of the investigation is to determine whether these providers acted with due care and diligence and considered suitability and risk when advising their clients," it said."It is also not permissible for financial services providers to recommend financial products to clients that are not issued by licensed entities."-Fin24Balwin introduced a new apartment trade-in initiativeSouth Africa's largest sectional title developer, Balwin Properties, has introduced a new apartment trade-in initiative that will allow owners of its sectional title properties to upgrade to newer units.The new offering, Balwin Approved, is a "world-first trade-in opportunity for sectional title apartments," says CEO Steve Brookes, who told News24 the group borrowed the idea from the motor industry.Brookes says the trade-in programme will initially be piloted at selected Balwin developments in Gauteng and KwaZulu-Natal but may be expanded to the Western Cape in 2024."We’re very excited about this concept, which enables homeowners to trade in their current Balwin apartment for a new Balwin apartment," Brookes said in a separate statement, adding: Premium motor vehicle brands have been doing this for years, where you can trade in your good quality car for a later model or buy a vehicle with peace of mind because of the manufacturer’s multi-point inspection and backing."Balwin Approved works on a similar basis, backed by our trusted brand, in what I believe is a first-of-its-kind concept for sectional title homes."The group's new apartment trade-in programme will involve it inspecting, evaluating and certifying apartments before granting them Balwin Approved status.-Fin24

COMPANY NEWS IN BRIEF

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Namibian Sun 2025-12-23

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COMPANY NEWS IN BRIEF

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Namibian Sun 2025-12-23

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