Buy-back and trade-in scheme introduced to industry

21st March 2014

By: Mia Breytenbach

Creamer Media Deputy Editor: Features

  

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Slurry pump manufacturer Hazleton Pumps has introduced a new buy-back and trade-in scheme for submersible slurry pumps in cases where it has become uneconomic to repair these pumps, states Hazleton Pumps MD Thys Wehmeyer.

“The decision was taken to introduce the scheme to provide users of submersible slurry pumps with the opportunity to sell or trade in their old submersible pumps, and to give our customers a financial incentive not to sell to scrap metal dealers,” he says.

When the repair of a submersible pump becomes uneconomic, it is normally sold as scrap metal at the low rate of about R2.30/kg, Wehmeyer points out.

While the submersible pumps are con- structed from different material compositions, with copper and aluminium comprising about 30%, copper scrap is bought at about R68/kg, while aluminium scrap is bought at about R13/kg, he notes.

Wehmeyer notes that pump repair costs are generally high, owing to most of the submersible pumps sold in South Africa being imported and the repair of these ageing pumps, therefore, require components that are costly and difficult to obtain, which is the main reason for scrapping the submersible pump.

“This initiative offers an option to trade in an old or obsolete submersible pump when buying a new submersible pump. The trade-in amount offered will be calculated based on a trade-in value of R600/kW for any submersible pump, irrespective of the brand or condition, provided that the pump is complete and it has not been stripped. He notes that the price is based on the amount of copper and aluminium to be recovered and the higher the kilowatt rating of the pump, the more copper and aluminium is available to be sold.

“Submersible pumps that have been stripped will also be bought back at double the actual metal scrap value by weight,” Wehmeyer adds.

“Submersible pump users will benefit from the trade-in scheme, as the estimated weight of an 18.5 kW submersible pump is 275 kg. The highest amount that can be paid, according to the current scrap metal price, is about R 2.30/kg but the end-user can receive an additional amount of at least R10 467.50 for 275 kg than what is available at current scrap metal prices ,” he says.

The submersible pumps that are traded in, will be stripped and all the scrap components will be sold according to the metallurgical composition of the components, while the rotors and stators will be used in service exchange pumps, Wehmeyer explains, adding that, in most cases, the scrap metal dealers do not strip down the pumps completely and certain high-value metals are lost in the process.

“This aspect will be eliminated, as every pump that is received, will be completely stripped down and the components will be sorted to ensure the full recovery of high- value metals.”

Further, Wehmeyer says that, by saving clients money with the scheme, the company expects growth in local pumps sales.

Some submersible pumps have already been bought back from local scrap dealers and this gave rise to the idea of offering the user the opportunity to trade in used pumps, he notes.

He concludes that the company has received several enquiries from the industry, particularly from the mining sector, about the new scheme. “We expect to receive trade-in pumps with our future orders, for which quotations have been issued.”

Edited by Megan van Wyngaardt
Creamer Media Contributing Editor Online

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