Aveng Group reveals staffing and structure changes

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07-05-2013
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Business Day
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JSE-listed diversified engineering and construction company Aveng Group said on Friday it would regroup certain business units into more relevant and aligned operating groups, and reorganise management structures of new divisions.

Aveng’s steel operations would be combined into Aveng Steel. In the current structure, there are three steel-related businesses in three different operating groups. These are DSE in Aveng Grinaker-LTA, Aveng Steeledale in Aveng Manufacturing, and Aveng Trident Steel.

“To improve the customer focus of the businesses and to streamline operations, it is proposed to combine all of the above-mentioned steel units into one operating entity called Aveng Steel,” Aveng said.

A new division called Aveng Construction Africa would be created.

This would incorporate the entire construction portfolio in SA and the rest of Africa.

Aveng Grinaker LTA, as the main business unit within the Aveng Construction Africa operating group, would continue to function in its current form with the exception of certain specialised businesses.

The specialised business cluster would be collapsed by moving construction-related units directly under the construction units of Aveng Grinaker-LTA, and manufacturing or sales units to directly under Aveng Manufacturing or Aveng Steel.

Aveng Engineering would become the central unit responsible for generic engineering services and project management activities, and Aveng Water, Power & Energy, including Renewables and Minerals, the customer-facing sub-units.

Senior management changes would also be made. Brian Wilmot agreed to relinquish his role as group executive: Aveng Mining to become the MD of Aveng Construction Africa. Mr Wilmot has spent the last 22 years in contract mining.

In view of Mr Wilmot’s appointment to an executive role for Aveng Construction Africa, the current MDs for Aveng Moolmans and Aveng Shaft and Underground Mining would, in the interim, report to the Aveng Group CEO.

Aveng also announced the resignation of Grahame McCaig as MD of Aveng Grinaker-LTA. Hercu Aucamp, currently MD of Aveng Trident Steel, would be appointed to lead Aveng Steel.

Gavin Young, currently the MD of Aveng E+PC (Engineering and Projects Company), would lead the Aveng Engineering cluster.

The main threats to Aveng’s nearterm profits were strikes, Aveng CEO Roger Jardine said earlier this year. Mr Jardine said strikes had cut 23% off Aveng’s operating profit for the six months to December.