The consolidation of the global chemical manufacturing industry has resulted in the worldwide growth of the chemical distribution industry, particularly in Southern Africa, Protea Chemicals executive director Peter Gubb reports. "With more companies beginning to concentrate on bulk supplies to big clients, the role of distributors in servicing clients is becoming increasingly important," he explains.

As one of South Africa's premier industrial chemical distributors, the company delivers a quality service to large and smaller chemical consumers, offering competitively-priced products often within hours after orders have been placed and, increasingly, to meet just-in-time demand.

The privately-owned company boasts 600 different chemicals in its product range and services the entire spectrum of business sectors, including the mining, water treatment, engineering, agricultural, paper and pulp, food and personal care industries.

Products are sourced locally and internationally and, depending on the nature of the products, imports vary from as little as 20% to as high as 80%.

"Historically, Europe used to be the leading supplier of chemicals into South Africa.

However, although we still enjoy good relationships with European companies, and retain valuable agency relationships with these producers, we are beginning to import products increasingly from China and India," Gubb notes.

Exports are still a relatively small part of the company's activities, with between 10% and 15% of products being earmarked for, mostly, African countries.

As a classic distributor, Protea Chemicals has warehouses in all the country's major provinces, as well as more remote areas such as Nelspruit, Phalaborwa and Welkom.

An associate company in Zimbabwe, which has offices in Harare and Bulawayo, warehouses some of the products destined for the African market, but export customers are also serviced by Protea Chemicals from Cape Town and Durban.

The company makes use of different modes of transport to distribute products to customers, but, with railway use generally declining, road transport is by far the preferred choice of transportation.

Apart from using external trucking companies, the distributor also owns its own fleet of about 100 vehicles.

Once chemical products are bought from manufacturers in their original packaging, the company takes full ownership of them.

This means that consumers place orders for products with Protea Chemicals and not the actual manufacturers themselves. As a chemicals distributor, the company's warehouses and transport policies are subject to strict safety regulations.

Apart from being an ISO 9002 accredited company, which entails regular audits by the South African Bureau of Standards, Protea Chemical facilities are also audited frequently by their international clients. The company is also a signatory of the Chemical and Allied Industries Association's responsible care programme.

At present, the instability of the South African exchange rate is posing many challenges to those industries which are dependent on imports, and Protea Chemicals has consequently been able to assist many customers who were previously direct importers.

"With the rand having depreciated by 50% over the last year, we have been able to come up with innovative ideas to continue to supply our customers with the best and most cost-effective products," Gubb concludes.