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Johannesburg - Africa's second-biggest construction group Aveng Ltd expects its performance in the first-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 two-year order book at end-September rose to R31.3bn from R30.4bn at end-June, while its total project pipeline remained stable at R100bn.
The firm said it had been awarded several contracts during the period, including a R350m contract to build a hospital in the Western Cape and a R320m contract for chimneys and silos for the Medupi power station.
Aveng was granted an extension of its contract at Two Rivers Platinum mine for R360m 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 programme and preparations for the 2010 soccer World Cup, for which Aveng's Soccer City stadium will host the final.
- Reuters
