Reatile Gaz opens depot in KwaZulu-Natal

Simphiwe Mehlomakulu, Reatile Gaz Chairman is congratulated by Mike Mabuyakhulu, MEC for Economic Development, Tourism and Environmental Affairs, at the opening of a new depot by Reatile Gaz in Hammarsdale, KwaZulu-Natal.

The modern plant and cylinder-filling facility will act as a distribution facility, supplying cylinders in various sizes to customers and will also provide back-up bulk storage for the benefit of bulk customers.

The plant currently has a storage capacity of 45,000 litres of LPG and approximately 400 cylinders in various sizes can be filled per eight hour shift.

The company has been monitoring the economic growth of KZN closely and believes the idea to develop a gas supply market within a growing region makes good business sense. An ever-increasing and diverse customer base in KZN, including small to medium-sized enterprises and major national companies across South Africa, emerged as one of the business imperatives.

Strategic link

Durban was identified as a strategic link between Eastern Cape and Gauteng where Reatile Gaz already has an established presence in the market. The geographical positioning of the depot in Hammarsdale is a plus factor. The plant is conveniently located midway between Durban and Pietermaritzburg which provides direct access to markets in both regions.

Engen Petroleum, a major shareholder of Reatile Gaz, has a well-established and efficient refinery in KZN from which a substantial portion of Reatile Gaz's LPG supply is sourced. Hence, the location of the refinery is seen as a strategic advantage to Reatile Gaz and further motivated the company's substantial investment in the KZN region.

"A national footprint enables us to enhance our service to companies that have multiple sites. Such companies benefit from group advantages such as pricing and resource allocation," said Simphiwe Mehlomakulu, Reatile Gaz chairperson.

"Our goal is to always offer tailor-made solutions to cater for individual customer requirements and we therefore, encourage our customers to be forthcoming with their specific expectations from Reatile Gaz."

Focus area

Mehlomakulu said the leisure and tourism industries, among others, were a strong focus area for Reatile Gaz owing to KZN's warm subtropical climate and scenic attractions which render the region an increasingly popular tourist destination.

The Hammarsdale depot is the fifth plant to be opened by Reatile Gaz in the last five years. The first depot located in Germiston, Gauteng was opened in 2010 followed by Blackheath, Cape Town in the Western Cape (2011), Chamdor in Gauteng where Reatile Gaz is headquartered (2012) and Port Elizabeth in the Eastern Cape (2014).

The Hammarsdale depot currently affords 12 people a livelihood on a full-time basis as part of the first phase of development with progressive employment prospects in the offing for locals as plans to increase the capacity of the depot take shape.