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METAIR INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1948/031013/06
ISIN: ZAE000090692
JSE and A2X share code: MTA
('Metair' or the 'Company' or the 'Group')
OPERATIONAL AND TRADING UPDATE FOR THE YEAR ENDING 31 DECEMBER 2026
The Port of Durban is South Africa's principal shipping container gateway and a critical link in the supply
chains of retailers, manufacturers, food producers and distributors. Durban Gateway Terminal, which
manages terminal operations, has experienced significant operational challenges in recent months,
resulting in substantial disruptions, frustration and financial losses for importers and their supply chains.
Among other issues, implementation of the new terminal operating system has severely disrupted
container handling. Equipment failures and limited crane availability have compounded the problem,
with delays at times approaching 20 days.
These disruptions have adversely affected businesses reliant on imported components and raw
materials, resulting in, among other things:
' Production interruptions ' Delays in the delivery of components and raw materials required for
manufacturing operations.
' Stock shortages and increased working capital requirements ' Higher levels of inventory in
transit, increased safety stock requirements and the need to place orders further in advance.
' Increased logistics costs ' Reliance on alternative transportation arrangements, including
airfreight and additional road freight, to mitigate supply chain disruptions.
The commercial impact on Metair has been significant. Airfreight has been utilised as a logistical
substitute and the related costs since August 2026 have been exorbitant. Delayed deliveries have
forced significant overtime to meet customer commitments and have contributed to a temporary
stoppage to one of our customer production lines.
As a result of the aforementioned challenges, the aggregate additional costs incurred and expected to
be incurred by the Group for the financial year ending 31 December 2026 are currently estimated to be
approximately 20% to 25% of the Group's reported earnings before interest, tax, depreciation and
amortisation (EBITDA) before exceptional items in comparison to the financial year ended
31 December 2025. These additional costs are not recoverable from customers.
The Port of Durban continues to experience serious congestion with indications that meaningful
improvement might not occur before the end of the first quarter of 2027. Should these conditions persist,
the Group may be unable to meet certain commercial commitments to customers and suppliers. In such
circumstances, and where the disruption is beyond its reasonable control, Metair may be required to
consider invoking applicable force majeure provisions under its contractual arrangements or exercising
such other rights as may be available to it under South African law.
Metair continues to engage proactively with relevant stakeholders, including its primary lender and
customers, to manage the operational and financial consequences of these disruptions and mitigate
the impact on the Group.
In addition to the port-related challenges, the industrial electron beam ('e-beam') machine at Metair's
subsidiary, Unitrade 745 Proprietary Limited, which is pivotal to its production processes, has
experienced several break downs since August 2026, exacerbating the operational challenges
presented by the imported components / raw materials for that business. The e-beam machine has,
however, been repaired and its operations have stabilised over recent weeks.
As reported previously, key strategic decisions by the government in the near term are pivotal to
sustaining and growing production levels, with stakeholder collaboration required to strengthen local
manufacturing competitiveness, support localisation and Complete Knock-Down (CKD) manufacturing
operations, and protect and diversify export markets as well as fix structural constraints. These key
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strategic decisions remain outstanding, and slow decision making continues to further hamper the
industry in the medium term.
The financial information contained in this announcement is the responsibility of the board of directors
of the Company and has not been audited, reviewed or reported on by the Group's external auditors.
13 November 2026
Johannesburg
Sponsor
One Capital
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Date: 13/11/2026 08:05:58
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