The Southern African Plastic Pipe Manufacturers Association (SAPPMA) hosted their 2022 annual general meeting (AGM) on Wednesday, 19 October 2022. Although this year’s event was once again a virtual meeting, SAPPMA directors and members made it clear that they wished to return to in-person meetings as soon as possible. SAPPMA Chairman Terence Hobson welcomed the guests who logged in to hear the day's presentations, explaining that many of the association's members were attending the K-Show in Germany, thus the lower-than-expected attendance.

In his written report which was circulated to members prior to the meeting, SAPPMA Chief Executive Officer Jan Venter stated that the financial year ending 30 June 2022 was a relatively stable and normal time of business activities compared to the previous reporting period of 2020/2021. However, polymer prices continued to escalate during this period to levels that were previously unheard of. HDPE prices escalated from 162 to 220 and PVC from 172 to 180.

“Linked to these extraordinary cost increases, was the short supply of PVC polymer in particular. Despite the fact that these factors inevitably adversely affected our members’ productions and volumes and margins, we saw the resilience of the market absorbing most of the negativity,” Jan recounted.

Another source of concern raised by Venter was the excessively low selling price of plastic pipes on the South African market. He emphasized that certified pipe's average selling prices do not reflect its long-term value.

“It is certainly justified to make reasonable gross margins on products that must last up to a hundred years and are essential to the overall well-being of all citizens. We can only hope that manufacturers and traders will start to be more conservative with their discount structures. Continuing with these low prices will have a negative impact on profitability and, eventually, product quality of pipes, as manufacturers begin to cut corners for financial survival.,” Venter warned.

New SAPPMA Board of Directors announced

All members of good standing were invited to for who they wanted to have represent their interests on the SAPPMA board of directors. In accordance with the the association’s MOI, the Board should have a minimum of three and a maximum of seven directors (one of which should be the CEO). The following members were voted in for the period 2022/2023:  

• Kuda Chigiya (Pro Plastics)
• Gordon Rootman (Eurocelt)
• Trevor Woolward (Pipetech)
• Shaun Hart (Macneil)
• Terence Hobson (Sun Ace)
• George Diliyannis (Safripol)

Jan Venter congratulated the newly elected board members on their election and thanked them for volunteering to serve on the board. He also thanked the departing board members for their work and commitment to SAPPMA over the previous year.

“SAPPMA continues to play a crucial role in the industry by contributing to its long-term viability. The uninterrupted supply of clean water to our homes and the continuous removal of waste water remain an indispensable part of public health. It is our industry that makes this possible. We look forward to a New Year that holds the promise of significant investment by Government to upgrade and repair large sections of the country’s water infrastructure. After many years of neglect, the work has accumulated. The plastic pipe manufacturers wait with eager expectation that the promised spending will finally materialise and to play their part in restoring hope, health and honesty to the country,” Venter concludes.