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Freeing cement from the shackles of cartelsMICHAEL DOYLE
MIKE Doyle, new managing director of Alpha Ltd, has never really had to contend directly with the cement and stone cartels which, for a long time, virtually dictated the activities of the industry's three main players, even though he's been in the business since 1971. With a wry smile, he says he became a director of the Alpha stone and readymix division in January 1990, one day after the stone cartel was disbanded. And he was appointed managing director of parent group Alpha Ltd at the beginning of this month, about a year after the cement cartel was outlawed. However, he has been compelled to "oversee and experience the instability that ensued". As a result, he's had to contend with the latest set of financial results which show a 12% decline in attributable profits to R174.5-million for the year to December, blamed partly on promotional and advertising costs relating to the re-launch of the cement division's products in a "free" market. Replacing Johan Pretorius, who retired after 39 years with the company, Doyle is committed to upholding a proud record for the company by producing the annual report only weeks after preliminary results were published. The company's first managing director set the standard and subsequent appointees have tried to better his example. However, Doyle says that in September 1994 an award, made of copper, for the excellence of the annual report was struck by lightning which bolted through an open window, reducing it to a molten heap. "Pride comes before the fall," he notes. Doyle joined Alpha, then Anglo-Alpha, in 1971 as assistant to the company secretary, but "it was a year before I was allowed to sign my first letter". He held a number of financial positions in the group and was appointed general manager of Alpha stone in Gauteng and Mpumalanga in 1979, then general manager of Natal Portland Cement in 1984. In 1996 he became director of management services, a position he relinquished last year to prepare for his new job. s group managing director this month. While Doyle has been at the helm for only two weeks, he is totally au fait with the operations of the group and how he wants to shape them. He concedes the break-up of the cartel resulted in rising costs, but he believes that as new systems become more sophisticated, costs will fall. Effective capacity will be increased from 3-million tons of clinker to 3.5-million tons, largely by using improved technology, new kiln systems, improved plant utilisation and increased storage facilities. Total domestic consumption is expected to increase by about 2% this year, he says, but will be spread more evenly throughout the country. Most of the increase will be in the second half of the year, spilling over into 1999. The group is still considering the construction of a greenfields factory at Saldanha in the Western Cape, but this will depend on the granting of two permits - the environmental impact assessment, due for completion during the middle of the year, and a mining permit for the limestone deposits. A final decision is not expected for about 18 months. Alpha is also looking at opportunities outside South Africa following the successful acquisition of Tanga Cement in Tanzania. "We currently operate, directly or indirectly in 11 of the 14 SADC countries and the ability to link and network these operations has been very rewarding. We hope to make further strategic investments in sub-Saharan Africa later this year," says Doyle. Doyle is married to Shale and they have two daughters. Don Robertson
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