Vehicle component manufacturer Metair had the ambition to expand its battery distribution footprint in Africa significantly and would try to advance this dream in 2013 already, said MD Theo Loock on Monday.

Speaking at the company’s annual results presentation in Johannesburg, he said Metair was currently servicing the African countries of Angola, Namibia, Lesotho and Swaziland with its Exide brand, Malawi with the Raylite brand, and Algeria, Egypt and Morocco with its Romanian Rombat battery.

Loock said Metair “wanted to push” its Exide brand into Africa, particularly Eastern African countries such as Uganda, Kenya, Zambia, Zimbabwe, Tanzania, Egypt, Rwanda, Burundi and the Democratic Republic of the Congo. More Francophone countries, such as Chad, Niger, Mali and Mauritania, as well as Nigeria, could potentially be added as Rombat customers.

Expanding Metair’s battery business was part of the company’s strategy to expand its battery business up from the current 38% of overall business, to 50%.

Metair’s new 3 X 50% strategy also wanted to ensure that 50% of revenue came from supplying parts to vehicle manufacturers, or original equipment manufacturers (OEMs), with the other 50% of business residing in the after, nonauto and export markets.

The current split saw 58% of revenue come from the OEM market and 42% from the after, nonauto and export markets.

Loock said many of Metair’s competitors were exiting the OEM business, but noted that the company would remain active here as it believed supplying vehicle manufacturers provided it with access to the parts aftermarket and a continuous flow of new vehicle technology.

Metair supplied all seven OEMs in South Africa, such as Toyota, in Durban, and Ford, in Pretoria.

Loock was also positive about business opportunities in Europe, with the Rombat acquisition, now one year in the Metair stable, playing a significant role in boosting Metair’s operating profit for the financial year ended December 31 to R669-million, up from the previous year’s R576-million. Revenue increased to R5.27-billion in 2012, up from the R4.29-billion recorded in 2011.

“Our new business really contributed to this result,” said Metair FD Brian Jacobs as he unpacked the company’s financial results.

Consolidated results showed Rombat recording a turnover of R713-million and profit after tax of R45.5-million in 2012. While revenue was not up on 2011, profit was higher than the R34.2-million recorded in the previous year.

Loock said the installation of a start-stop battery manufacturing facility had been completed at Rombat, but emphasised that it would take around three years for this project to come to fruition.

The first start-stop batteries off the line were currently being tested. Loock expected sales of around 150 000 units in 2015, growing that into 2016 and 2017 as the company expanded into more of Europe.

Looking ahead, Loock said it “would be challenging” for Metair to continue the growth spurt seen in recent years, backed strongly by rising vehicle sales in the local and global markets.

Maintaining the company’s positive position would require “continued demand for local vehicle production and aftermarket products”.

Loock added that a prerequisite for success in 2013 would be “a stable and nondisruptive labour environment, combined with reasonable currency stability”.

The automotive manufacturing industry this year had to negotiate a new labour deal, following the end of a multiyear agreement.

Loock estimated that the 2012 Marikana labour conflict cost Metair, which also supplied the mining industry, around R30-million to R40-million in sales to the mining sector, with a spillover strike at a vehicle manufacturer costing the group another R150-million in revenue.