A specialist mechanical engineering fabrication company designing and manufacturing solutions for the coal mining industry

Mpumalanga
Industrial & Manufacturing
Client Code: BN000025496
Turnover (Forecast): R80,149,795
EBITDA (Forecast): R20,566,691

Acquire a mechanical engineering fabrication company that specialises in manufacturing solutions for the coal mining industry. Providing a full service offering to a blue-chip customer base, the company designs, develops, manufactures and assembles equipment, parts and accessories for customers to meet their specific needs. With many originally patented products developed and designed in-house, the company has a reputation as a problem solver in the coal mining sector due to its expertise and extensive engineering capabilities.

Key Aspects
  • Proven ability to design and manufacture bespoke engineering solutions
  • Very stable intellectual property base through documented procedures, best practices and constant training and mentoring of younger staff
  • Multiple products patented when first designed
  • Significant asset base of machinery and equipment as well as own fleet of vehicles; this expense forms a significant barrier to entry
  • Established brand that is well recognised and respected in the coal mining industry
  • Loyal blue-chip customer base
Opportunities
  • Expanding the company's service offering to include on-site installation, maintenance and repairs; this would open up tender and procurement opportunities and increase the scope of contracts the company could tender for.
  • The company can increase its customer base by expanding its geographical footprint. The expanded service offering of on-site work would immediately increase the customer base by reaching new customers outside the current geographic radius of operation. Looking further afield, the company could expand its footprint to neighbouring countries in sub-Saharan Africa; this would require a distribution network to be established.
Headquartered
  • The company is strategically headquartered in Evander, Mpumalanga in the heart of South Africa's coal mining industry.
Current Markets
  • The company operates within a niche customer market of companies in the coal mining industry, with a key preferred supplier relationship with one of the country's biggest coal mining houses.
Potential Markets
  • The company's multi-use asset base is a great platform for entry into other markets requiring engineered and fabricated products, such as other mining sectors, project management houses and other industrial customers including solar and wind farm developers.