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UPDATE - Cambria Africa’s new Millchem supply deals mark significant progress

Published: 09:32 23 May 2014 BST

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Cambria Africa (LON:CMB), the Southern Africa focussed investment company, has revealed exciting progress in the Millchem business - one of the AIM firm’s core subsidiaries.

Millchem, a chemical distributor that is expanding into new markets, has obtained a number of key new regional supply and distribution agreements.

Its new suppliers include blue chip companies such as ENI/Agip, Sealed Air Corp and Donau Carbon.  

The new deals marksignificant progress in the expansion of Millchem, the first accredited "Responsible Distribution” company (being both FECC and NADC Accredited) in Africa. Millchem continues to broaden its base of suppliers, expand its regional offering and add new end-markets.  

“I am pleased Cambria can announce several key distribution agreements for Millchem, in line with our strategy to grow the scale, scope and regional presence of our investments,” said chief executive Edzo Wisman.

“Following these achievements for our Millchem business, the team at Cambria team continues to identify further opportunities to open our portfolio of business up to their regional growth opportunities.”

Here we look in closer detail at Millchem’s exciting new deals.

Millchem, Diversey and Carlsberg:  Brewing winning chemistry in Malawi

Millchem has executed a distribution agreement with Sealed Air Corporation (NYSE:SEE), the global leader in food safety and security, facilities hygiene, and product protection. 

It will become distributor in Malawi for Sealed Air’s well-known Diversey Care range of sustainable cleaning, sanitation and hygiene solutions.  

The Carlsberg Group (COP:CARL) will be the first customer of these products in Malawi.  Carlsberg Malawi comprises 5 bottling plants, a distillery and a brewery.  The company produces world class brands such as Carlsberg Green Label, Coca-Cola, Fanta, and Sprite, as well as the iconic Malawi Gin. 

Matthijs Mulder, CEO of Millchem said:  “Importantly, earlier this week Millchem has been listed for the first time by Coca-Cola’s Technical Bulletin as an approved supplier of Diversey products.  

“An important achievement for our company, the arrangement between Sealed Air and The Carlsberg Group lays testament to Millchem’s ability to deliver on key relationships responsibly adding value for a wide range of suppliers and customers.”

Ezra Njobvu McDonald, Purchasing Officer at Carlsberg Malawi said: "When deciding on our supply chain, we recognised the cost and time benefits of contracting with Millchem, who are able to supply from local stocks in local currency. Operating from within our region enables a lead time of only 48 hours, instead of our current lead time of several weeks." 

Arent van Wassenaer, Milchem's business development head for Malawi Millchem, said: "With Carlsberg signing up to procure our Diversey range of products, we have received yet another endorsement of our commitment to high quality standards and best practice principles gained from implementing the Responsible Distribution Program."

Millchem becomes exclusive distribution partner of MEKZ in Zimbabwe, Zambia and Malawi 

Millchem has also become the exclusive distribution partner of London based chemicals trader MEKZ for Zimbabwe, Zambia, Malawi Namibia and Botswana.  

MEKZ specialises in supply into Africa and has built up a leading position in the paints and coatings market in a large number of countries. 

As a result, Millchem will exclusively bring products such as Crystal Titanium Dioxide, Shin-Etsu Tylose and Eagle Alkyds into these Southern African countries.

This exclusive partnership follows a successful working relationship, which has seen increasing levels of co-operation over a three-year period, between Millchem and MEKZ. 

Roald Sommersel, Founder and Managing Director of MEKZ comments:  “We certainly benefit from Millchem’s international management and operations structure. 

“Overall, Millchem offers an appealing proposition: proximity to end-users; technical support; supplying from local stock in local currency; and offering an expanding network of branches.”

Millchem will exclusively partnering with CENTLUBE for ENI (former AGIP) lubricants

Millchem has become the exclusive Centlube distributor in Zimbabwe, Zambia and Malawi for South African license holder and blender of ENI’s (Former AGIP) lubricants.  

The main target market for Millchem for these lubricants are heavy equipment and the mining industry, but also the cash sales of 2-stroke engines will be catered to.

Lionel Maiden, the Managing Director of Millchem Zambia, plays a pivotal role in establishing a firm presence in the Zambian market. He comments: 

“We are pleased that Centlube has confirmed us as their exclusive partner for Zambia, Zimbabwe, and Malawi. This partnership will prove invaluable in further improving our capability to distribute the broad range of products on offered by Millchem”.

Grant Hinckley, CEO of Centlube comments: "Once we received the offer from Millchem, to supply our full range of ENI lubricants to end-users in the mining industry, from local stocks and in local currency, we realised the value of this hands-on, focused, local marketing approach". 

He adds:"We also highly value the ‘Responsible Distribution’ programme initiatives that Millchem operates, such as their policy to recycle oil for use as heavy fuel oil after we clean it in South Africa." 

Millchem exclusive distributor for DonauCarbon in Zimbabwe, Zambia and Malawi

Millchem has also become an exclusive distributor in Southern Africa for Donau Carbon Corporation, a leading global player in the activated carbon business.  

Activated carbon is an environmentally friendly and recyclable product with applications in many different industries with applications in mining and industry for cleaning purposes - ranging from exhaust air and (waste) gas clean-up via water and liquid treatment through to processes such as solvent recovery.  

Jürgen Ries, Donau Carbon’s Managing Director said: “Dealing in the mining industry, we are highly aware of the need to ensure responsible practices are conducted throughout our supply chain. With Millchem’s unique accreditation, we are well-placed to maintain our high standards.”

Meanwhile, MILLCHEM itself continues to grow

With a growing network of warehouses and branch offices throughout Southern Africa, Millchem supplies to increasing numbers of small, medium and large consumers of industrial raw materials, within Zimbabwe, Zambia and Malawi.  

High quality management systems and established installations for handling bulk liquids make Millchem an appropriate partner for global leaders and local end-users in the chemicals manufacturing sector.   

The new, recently obtained distribution agreements are a testament to Millchem’s ability to add value to its customers as well as suppliers.

“These are very exciting new developments for Millchem,” said chief executive Matthijs Mulder.

“MEKZ brings a wealth of experience and goodwill, as well as quality principals EAGLE, Shin-Etsu and Cristal and other leading brands. These superior products complement our excellent portfolio from other international principals such as OCI, DonauCarbon and Sasol

“The new Sealed-Air Diversey relationship establishes us as a leading technical service provider in the region, as well.  

“All of these new distribution agreements place us as a provider of a full range of specialties and commodities, technical support and logistics excellence for each major industry in our region.”

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