Specialists in the development, manufacturing and distribution of HDPE piping systems

Our client offers niche services in plastic engineering and welding, the supply of specialised plastics, and provision of mining supplies. The company designs, manufactures, develops, distributes, installs and maintains HDPE pipe systems, pumps, valves and related accessories. They have a strong history and deep experience in servicing the mining industry, and maintenance of piping systems in various plants, typically used for mineral processing, dewatering, and water reticulation purposes.

Key Aspects

• A first-rate reputation developed over many years of operation
• Deeply entrenched in the mining industry
• Very loyal and long-standing client base
• Skilled staff with in-depth knowledge, experience and industry-certified training
• Word-of-mouth referrals for service excellence and competitive pricing
• Offers a complete service package
• Quick response times, ensuring minimal downtime for clients
• High stock holdings
• Strong relationships with suppliers support the rapid manufacturing response times
• Competitive advantages within a market with high barriers to entry

Opportunities

• Producing own HDPE pipes: With current plans in place to begin manufacturing their own HDPE pipes, the implementation thereof will make our client one of the top HDPE pipe suppliers and installers in the country. It is estimated that initiating, importing and setting up the pipe manufacturing process will take approximately 16 weeks to implement, and once operational, will increase the GP margin by 40%.
• Direct imports of raw materials: Importing materials and products directly from the international suppliers will significantly reduce costs and increase profits.
• Purchase of own machinery: When small plant and specialised machinery is needed for the installation of complex dewatering systems currently, it is hired from local suppliers. Purchasing some small plant, such as a JCB and TLB for example, will reduce operational expenditure.

Headquartered

• The company is headquartered in Mpumalanga, South Africa, in the heart of the coal mining area where the majority of the client base is located. From here, the company services clients across the province and into the neighbouring Gauteng province. 

Current Markets

• With 34 mines as clients, the company offers onsite condition maintenance services, meeting with mining engineers weekly to determine current needs and install manufactured products. These long-standing, reliable relationships are a significant barrier to entry.
• Specifically, the current market comprises coal mines (80%), power generation companies (10%), the farming sector (5%), and for tailings dams (5%).
• The company has approximately 60 clients, with 70% of these being active within the last 12 months. 80% are repeat customers, the company typically has an 80% success rate in winning tenders, and in 2018, the company again renewed 3-year contracts with five major mines in the area.