Gases and welding company African Oxygen (Afrox) announced yesterday, that MD Brett Kimber had resigned with immediate effect.

The company, which started a cost-cutting programme to counter falling volumes in November last year, informed shareholders that Kimber had decided to leave the Company to pursue other career opportunities.

“A recruitment process to seek a suitable replacement has been commissioned and further announcements will follow in due course,” said the company.

Improving profitability

Last year, Afrox initiated a cost reduction programme “aimed at improving profitability”, BDlive reports.

“This programme has been initiated due to prevailing depressed market conditions which have led to volume erosion,” it said at the time.

Options to reduce costs included overhead reductions, “streamlining of management” and a review of the company’s geographic footprint, distribution network, and business and product portfolios.

Kimber, who had been at the helm of the company for three years, was overseeing a R1.5 billion capital investment programme, according to reports by BDlive.

He said last year Afrox had received board approval for a strategy to target further growth in the rest of Africa, where the firm derives 20% of its profits.

Afrox Chairman, Mr Mike Huggon, will assume transitional responsibility for the executive management of the Company until a successor is identified.