http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.34Change: -0.01
R/$ = 10.68Change: 0.03
Au 1294.21 $/ozChange: -0.38
Pt 1463.50 $/ozChange: 3.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 17, 2012

Manufacturer’s carbon steel division progressing well after acquisition

Back
Kulungile|Kulungile Metals Group|Pipe|PROJECT|Road|Robor|Safety|Systems|Carbon Steel Division|Equipment|Local Steel Tube|Logistics|Pipe Manufacturer|Product|Products|Steel|Systems|Andrew Winter|Infrastructure|Harman On Time Radio|Pipe
Kulungile|Pipe|PROJECT|Road|Safety|Systems|Equipment|Logistics|Products|Steel|Systems|Infrastructure|Pipe
kulungile|kulungile-metals-group|pipe-company|project|road|robor|safety|systems-company|carbon-steel-division|equipment|local-steel-tube|logistics|pipe-manufacturer|product|products|steel|systems|andrew-winter|infrastructure|harman-on-time-radio|pipe
© Reuse this

Local steel tube and pipe manufacturer Robor’s new carbon steel division, Robor Baldwins, is progressing well in its establishment since its introduction to the market in February, says Robor Baldwins MD Andrew Winter.

A year has passed since Robor acquired Kulungile Metals Group’s (KMG’s) carbon steel division, after it had been announced that the company would make additional investments in the newly established carbon steel division.

The additional investment included a R10-million maintenance and improvement project, aimed at increasing the production efficiency of the carbon steel division.

Year one of a three-year improvement project for the company has now been completed, during which the existing equipment was refurbished and safety measures, as well as improved speed and efficiency strategies, were established.

“The initial R10-million investment was always about improving the equipment to meet a reliable standard,” says Winter, adding that Robor Baldwins is in year two of the improvement project.

“We will continue to upgrade our facilities and will attend to some of the objectives that could not be reached in the first year, including the refurbishment of additional equipment.”

Winter says Robor Baldwins is on track in terms of projected growth expectations for the year, adding that the division was always aware of its holistic position within the Robor group and how it would proceed in furthering its milestones and key objectives.

With year two under way and the next R10-million investment planned for use in continuing the ramp-up of its facilities, Robor Baldwins will continue to prioritise safety issues before considering project-based investments in the latter part of 2013.

In the last 12 months, Winter and his team have also focused on improving the general infrastructure of Robor Baldwins and have dedicated time to stabilising the business and its customer base.

Hygiene and Safety First

After taking over from KMG’s carbon steel division, Robor Baldwins’ primary objective was to create a safer, more hygienic environment to ensure the safety of workers and visiting customers.

Excessive speed and a disregard for road signs on site went unnoticed prior to acquisition, and the factory had not been cleaned in years, says Winter. It took some time for the Robor Baldwins team to change the mindset of the existing organisation, which, in turn, would help in implementing a safer, cleaner workspace, as well as improving the standards to meet those of the Robor group.

It was only once these standards had been met that Winter allowed Robor Baldwins to present itself to the industry. “It was important to have a safe working environment and a clean factory, which we could proudly show to people. Moreover, I could not go out into the market without the right stock and reliable machines. This ramp-up was all about getting the basics right.”

Improving Logistics

Another important upgrade for Robor Baldwins was the improvement of its delivery fleet, as well as its systems and controls, ensuring that customers received their orders efficiently and timeously.

The logistics ramp-up meant that overall communication between Robor, its delivery team and the customers needed to be improved. “We have now achieved that level of visibility where, at any point in time, we know what needs to be planned, scheduled and delivered. We can also provide customers with feedback about the status of their delivery on a proactive basis,” says Winter.

Robor Baldwins’ fleet of delivery trucks are also branded, clean and well presented. “If any of our trucks is involved in an accident, it will be taken off site immediately. It’s all about portraying the right image to the market in ensuring that Robor is recognised for its high standards and consistency,” he explains.

Winter reports that, since the acquisition, the on-time delivery success rate has improved to 85%, up from 65%. He says that a new target of 95% has now been set.

The Next Step

Robor Baldwins aims to differentiate itself in terms of service quality. Winter believes the company is ready to service the market now that it has been stabilised, stocks the right products and offers more reliable service delivery.
Since the division was launched in February, there has been a steady increase in customer support. “Now it’s just a matter of growth and hoping the market improves,” he says.
“So far, every quarter in the past year has posed unforeseen challenges. We are trying to provide a competitive price, superior service and a quality product, but the demand is limited. From that perspective, it’s been an uphill battle.”
Further, as a result of the steel industry’s negative outlook, owing to low demand – which is directly affecting steel supply – Robor Baldwins has had to put counter measures in place to ensure the wellbeing of its business.
Therefore, the company has had to source steel from other countries, albeit reluctantly. “We don’t want to bring in product from outside – we want to keep things local – but sometimes we are forced to consider other alternatives, as a result of limited supply,” says Winter.
 

Edited by: Chanel de Bruyn
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Steel Construction and Cladding News
POSITIVE RESPONSEBSi Steel’s range of carbon-steel products include sections, sheet and plate, tubing, cold-formed sections, roofing and selected mining products
In the last two years JSE-listed steel distributor BSi Steel has opened a total of six branches in Gauteng and the North-West pronince, and has enjoyed strong support from its respective markets to date, BSi Steel South African stockists division CE Ross Teichmann...
LIGHT-STEEL-FRAME HOUSINGLight-steel-frame building offered the best solution for creating a village on Saint Helena islan
A workers accommodation project, which used the light-steel frame building (LSFB) method on Saint Helena island, in the South Atlantic Ocean, about 1 770.2 km west of Luanda, Angola, and the new office building of banking firm Standard Bank in Rosebank, Johannesburg,...
STEEL CONVEYER SPM Engineering is supplying a steel conveyer structure to a coal mine in Mpumalanga and hopes to complete the contract by the end of the year
The South African steel construction industry is monopolised by the larger companies, which possess significant customer bases, making it extremely difficult for new smaller companies to break into the industry, says Boksburg-based steel solutions provider SPM...
More
 
 
Latest News
While the global economy continues to battle growth headwinds as it slowly emerges from a lingering post-recessionary phase, the greatest inhibitors to South African economic development are largely domestic and within government’s control, Finance Minister...
Building materials firm Infrasors said on Friday that FD Marius Potgieter, who had occupied the position since July 1, 2009, had tendered his resignation and would leave the company with immediate effect.  Construction supplies manufacturer Afrimat FD and Infrasors...
Telecommunications group Telkom on Friday announced that, following extensive facilitated consultations and deliberations, management and organised labour had reached consensus that the company’s current restructuring process would proceed.  “The parties have...
More
 
 
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
South African construction company Group Five says work on the rehabilitation of the 800 km stretch of the Plumtree–Mutare highway, in Zimbabwe, should be completed by the end of this year. Giving evidence before the Parliamentary Porfolio Committee on Transport...
SINGLE EXPERIMENT An artist’s impression of OCO-2 in orbit
The Space Operations division of the South African National Space Agency (Sansa) revealed on July 17 that it had supported the successful launch of the US National Aeronautics and Space Administration’s Orbiting Carbon Observatory-2 (OCO-2) satellite on July 2. The...
RICE TAG The real costs of operating Rea Vaya have become clear
Phase 1A of Johannesburg’s Rea Vaya bus rapid transit (BRT) system should carry around 42 000 people a day, while it was been expected that Phase 1B, rolled out last year, would add another 60 000 daily passengers. However, the entire system is currently carrying...
A stormwater project in Bedforview, east of Johannesburg, has stalled for eight months after project managers in the Ekurhuleni municipality resigned and municipal managers were placed on special leave without designating replacements. Construction to reinforce the...
The design of the Beit Bridge border post is the biggest impediment to efficient freight movement between Zimbabwe and South Africa, says Cross-border Road Transport Agency CEO Sipho Khumalo. Beit Bridge is the busiest border post in Africa. A research study on the...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks