Africa's 2nd-biggest construction group Aveng Ltd expects its performance in the 1st-half of 2010 to be worse than 2009 as trading conditions remain tough, it said on Friday.
The South African World Cup stadium builder said volumes in its steel manufacturing and processing business had stabilised, but said the continued strength of the Rand currency would hurt foreign earnings. Aveng said its 2-year order book at end-September rose to R31.3-bn from R30.4-bn at end-June, while its total project pipeline remained stable at R100-bn.
The firm said it had been awarded several contracts during the period, including a R350-mn contract to build a hospital in the Western Cape and a R320-mn contract for chimneys and silos for the Medupi power station. Aveng was granted an extension of its contract at Two Rivers Platinum mine for R360-mn and McConnell Dowell won contracts to construct marine facilities on the Sino Iron Project in Hong Kong and the Singapore International Cruise Terminal on Jurong Island.
Construction continues to be the best-performing sector in South Africa, bolstered by a government infrastructure spending program and preparations for the 2010 soccer World Cup, for which Aveng's Soccer City stadium will host the final.
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