Specialist manufacturer, designer and supplier of steel roof bolts for the underground mining industry

Gauteng, South Africa
Industrial & Manufacturing
Client Code: BN000043576
Turnover (Forecast): R120,514,853
EBITDA (Forecast): R10,965,384

This company specialises in designing, manufacturing and supplying steel roof bolts to the underground mining industry in Southern Africa. The leadership team has long-standing relationships with blue-chip clients in the mining industry. Operating from a fully-equipped manufacturing facility in Gauteng, this company is ideally positioned to serve a local and cross-border customer base with high-quality, SABS-approved mining products. 

Key Aspects
  • Established business in operation for 16 years with a strong presence in the Southern African underground mining industry 
  • Loyal customer base of blue-chip companies operating in the underground mining industry 
  • Significant barriers to entry, such as high start-up costs, in-depth industry insight and long-term client relationships 
  • Hard-earned reputation for high-quality products and excellent customer service
  • Fully-equipped manufacturing facility with an in-house test laboratory with calibrated tensile test machines to ensure product quality and durability
  • Extensive asset list and fleet of vehicles with a replacement value of R12m
  • BEE Level 1 and ISO 9001:2015 accredited, enabling successful tender applications
Opportunities
  • Expanding the geographical footprint by serving underground mining clients in the SADC region 
  • Diversifying the product range to include other core and ancillary products, such as mesh and Oslo strappings 
  • Automating core business processes for cost savings, faster production and safer working environments
  • Growing an affiliated company that specializes in steel bolt installations, to provide clients with a more holistic service offering 
  • Sourcing additional machinery and hiring more skilled staff to meet increased demand without compromising on quality or turn-around time
  • Developing high quality drill bits and supplying them to new and existing clients 
Current Markets
  • The company serves a loyal customer base of blue-chip customers and has nurtured long-term and highly-rewarding relationships with these customers with a strong customer retention rate. 
  • The company secures 3–5-year contracts through referrals, networking and securing tenders. The company currently has a 70% success rate in tendering and capitalizes on this to secure repeat business and develop long-term relationships.