• Ecobat, a global leader in battery recycling, divests all its South African Operations, Zimco Group Proprietary Ltd, to AutoX.
  • The firm is the world’s largest battery recycler. Ecobat has decades of experience recycling and producing lead-acid battery materials.
  • AutoX Proprietary Ltd has over 3,000 automotive replacement retail outlets across South Africa and UK markets.

With the world steadily evolving to a more digital and eco-friendly era, many organizations have sought better ways to grow and consolidate their market. South Africa has recently caught the eye of many investors due to ongoing innovation and competitive government policies. However, Electricity rations have left the economy reeling, hurting many companies’ operations.

In the latest developments, South African battery manufacturer AutoX Proprietary Limited received ample support from Ecobat, which sold all its subsidiary businesses. This move represents an opportunity to scale for AutoX and highlights the country’s prevailing business environment.

AutoX Proprietary Ltd gains Ecobat’s SA market.

South Africa is among Africa’s Big Four countries and is the most industrialized nation on the continent. Its years of progress and change have enabled South Africa to consistently improve its tactics, marking it as an investment hub for years. Its government has advocated for technological revolution since 2000, and its ICT capabilities are among Africa’s best. Unfortunately, the nation is not without its challenges.

Deep-rooted corruption within the nation has done a lot of damage to its progress. For instance, severe power cuts mainly due to corruption significantly drain the nation’s potential. As a result, Ecobat, a global leader in battery recycling, will divestiture all its South African Operations to AutoX Proprietary Limited. Its Zimco Group Proprietary Limited and other platforms to AutoX significantly overhauling the South African battery manufacturer.

According to the official filing, Zimco Group comprises several businesses operating across various areas. They include Fry’s Metals, Castle Lead Works, Associated Additives, Zimco Metals, G&W Mineral Resources, Dutton Plastics, and Sondor Performance Foams. 

White & Case and Investec Bank Limited presided over the transaction as their legal and Financial advisors, respectively. According to Marcus Randolph, Ecobat’s CEO, the transition was necessary for their organizations. The current state of South Africa has proven strenuous for Ecobat, and collaborating with a South African Battery manufacturer ensures continued support for the ecosystem.

Marcus Randolph said, “I would like to thank the Zimco Group management and workforce across southern Africa for their service and commitment. This divestment advances Ecobat’s strategic initiative to focus on our core business of battery recycling in North America and Europe.”

Expansion and growth

AutoX Proprietary Limited clarified that acquiring a new market will aid their efforts to expand their operation throughout South Africa. In addition, Glenn Geldenhuis claimed that some functions would significantly help overhaul their performance and dominate South Africa’s market.

Glenn said, “The acquisition of Fry’s Metals, through the acquisition of the Zimco Group, forms part of AutoX’s strategic intent regarding its vertical backward integration and enables AutoX to have greater control over its supply chain in a volatile market, with the added benefit of providing opportunities to improve overall efficiencies and enhance control over its manufacturing processes. Fry’s Metals has to date been a long-standing supplier and lead recycling partner to AutoX.”

Read also: Africa Makes Its Mark and Claims a 1 cent share in the Global digital economy.

AutoX Proprietary forays into South Africa’s market

AutoX is South Africa’s leading automotive lead-acid battery manufacturer, with access to several European countries. Like most industries in the region, AutoX has a long history of struggles and success in the SA market.

Since the 1920s, the South African battery manufacturer has serviced the nation with high-quality car batteries, significantly aiding the region’s transport industry. Auto has developed batteries that are optimized for the African market. The firm’s expertise has led to the creation of a robust battery technology powering millions of vehicles throughout Africa.

Its well-recognized Illard and Sabat Battery brands have gained recognition worldwide. This attests to the organization’s commitment to excellence. In addition, AutoX services both OEM and aftermarket replacement battery sectors.

According to its official site, it has over 3,000 automotive replacement retail outlets across South Africa and the UK. The company also has a diversified range of batteries, from gel to specialized battery applications like lithium and solar.

Read: Women Entrepreneurs Dominating Digital Presence in Africa: MasterCard

Eco-friendly batteries

As green manufacturing gathers pace across Africa, AutoX Proprietary Limited has shifted its focus to offer eco-friendly batteries. It develops a Lead-Acd battery, which is 98 per cent recyclable. It contains a substantial life cycle, preventing environmental damage. Moreover, the South African battery manufacturer has set up a scrap battery program. This initiative allows the franchise to save on costs by reusing old batteries without infringing on quality.

On its part, Ecobat is the world’s lead battery production franchisee. Its network features 11 smelters across two continents with an average annual output of 840,000 tonnes.

Ecobat also leads in recycling lead batteries while offering renewable alternatives. Overall, it boasts a 99 per cent recycling rate through this initiative. The firm’s primary goal is to provide greener choices to standard battery cars.

Ecobat has focused on recycling lithium-ion battery materials to bolster its green energy objectives. It has erected three lithium-focused facilities throughout the globe, offering a wide range of functionalities. As per their official site, they designed these facilities for lithium battery collection, discharge, diagnostics, dismantling, crushing/sorting, and recycling management. 

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