Two South African process-control companies have been taken over by
a large multi-national UK-based firm.
Spirax-Sarco Engineering hasacquired the entire issued sharecapital of Actuators and Controls, trading as Mitech, and Proportional Control Technology, trading as PCT.
“This move is set to benefit all the companies involved,” Spirax Sarco business development manager in the controls division Richard Ransome assures.
Based in Johannesburg, Mitechspecialises in the design and manufacture of globe-control valves,pneumatic actuators, desuperheaters and allied equipment for the process industry.
The acquisition includes Mitech’s range of specialist control valvesand actuators for steam and high-pressure industrial processes andthe PCT range of control instrument-ation. Ransome tells Engineering News that the addition of the Mitech and PCT’s range of process-controlproducts perfectly complements Spirax Sarco’s previous productrange which supplied the necessary components for any steam application andcondensate loops. “These two companies are constantlyintroducing new products to the market to match niche areas in the industry,” explains Ransome.
PCT has announced the imminent intro-duction of a middle-range semismartpositioner. The semismart positioner will not be the most technologically advanced but will also not be as expensive as the previously-available smart positioners.
“This product will fill a key position in the market, in that it will give the most essential benefits of the smart positioner without anyof the luxurious additional features. Thiswill allow companies for which the smartpositioner was too expensive, to upgrade their systems and gain additional benefits without breaking the bank,” explains Ransome.
Mitech continues to offer world-class valve solutions to the especially-nasty applications, some of which have included 600-bar-water pressure drop and 950 ˚C gas. These install-ations are to be found around the world.
Ransome explains that Spirax is not the only company which will see gains arising from the deal and that the two South African companies will benefit from the increased exposure tointernational markets.
“Previously, our companies were marketedmainly to local industries, with some minimalexporting to Zambia, Zimbabwe, the UK, New Zealand and Australia; now we will be able to take advantage of the worldwide Spirax Sarco network, which will add significantly to our current exporting programmes,” explains Ransome.
While the Mitech range does already conform to ISO 9001:2000 and PED specifications, the intention is to ensure the adoption of other internationally-accepted quality procedures.
“The more procedures we adopt, the more likely it is that we will successfully penetrate the international market,”explains Ransome.
Ransome adds that this added exposure is set to have a significant impact on the overall turnover of both Mitech and PCT and that thecompanies are readying them-selves for the increased turnover.
“We expect to start seeing the benefits in the third quarter of next year,” reports Ransome.
The deal has been in development since the third quarter last year but finally went through in June. Ransome explains that at the moment the company is still made up of three separate Pty Ltds but legal integration is expected very soon. The new controls group of products will be marketed under the name Spirax-Mitech.
“Physical integration is expected towardthe end of 2006 but Mitech will begin manufacturing Spirax Sarco products much sooner than that,” explains Ransome. Ransome adds that the acquisition of Mitech and PCT by Spirax Sarco has also focused the group’s sales ideology. “Essentially Spirax Sarco was a sales-focused company which also happened tomanufacture their products. Mitech and PCT were the other way around. The new arrangement allows Mitech and PCT to do what they do best, which is manu-facturing the products and freeing up the Spirax sales staff to focus on delivering better service to the client,” says Ransome.
The new group has sales branches around the countrywith the total number of staff employed in direct selling increasing from 10 to 50 people across the merger. Mitech was founded in 1985, producingrotary pneumatic actuators, which quicklydeveloped into linear actuators and control valves.The company currently employs 50people and is ISO 9001:2000 approved.In June of 2002 the company obtained TUVaccreditation to the European Pressure Equip-ment Directive 97/23/EC module H (PED)in respect of design, manufacturing and conformity to the directive.
PCT was founded in 1991 as an independantcompany designed to supply Mitech’s positioner needs and act as an independant supplier of positioners to the OEM market. To date, the company has supplied more than 20 000 units to the local market.
Spirax-Sarco Engineering hasacquired the entire issued sharecapital of Actuators and Controls, trading as Mitech, and Proportional Control Technology, trading as PCT.
“This move is set to benefit all the companies involved,” Spirax Sarco business development manager in the controls division Richard Ransome assures.
Based in Johannesburg, Mitechspecialises in the design and manufacture of globe-control valves,pneumatic actuators, desuperheaters and allied equipment for the process industry.
The acquisition includes Mitech’s range of specialist control valvesand actuators for steam and high-pressure industrial processes andthe PCT range of control instrument-ation. Ransome tells Engineering News that the addition of the Mitech and PCT’s range of process-controlproducts perfectly complements Spirax Sarco’s previous productrange which supplied the necessary components for any steam application andcondensate loops. “These two companies are constantlyintroducing new products to the market to match niche areas in the industry,” explains Ransome.
PCT has announced the imminent intro-duction of a middle-range semismartpositioner. The semismart positioner will not be the most technologically advanced but will also not be as expensive as the previously-available smart positioners.
“This product will fill a key position in the market, in that it will give the most essential benefits of the smart positioner without anyof the luxurious additional features. Thiswill allow companies for which the smartpositioner was too expensive, to upgrade their systems and gain additional benefits without breaking the bank,” explains Ransome.
Mitech continues to offer world-class valve solutions to the especially-nasty applications, some of which have included 600-bar-water pressure drop and 950 ˚C gas. These install-ations are to be found around the world.
Ransome explains that Spirax is not the only company which will see gains arising from the deal and that the two South African companies will benefit from the increased exposure tointernational markets.
“Previously, our companies were marketedmainly to local industries, with some minimalexporting to Zambia, Zimbabwe, the UK, New Zealand and Australia; now we will be able to take advantage of the worldwide Spirax Sarco network, which will add significantly to our current exporting programmes,” explains Ransome.
While the Mitech range does already conform to ISO 9001:2000 and PED specifications, the intention is to ensure the adoption of other internationally-accepted quality procedures.
“The more procedures we adopt, the more likely it is that we will successfully penetrate the international market,”explains Ransome.
Ransome adds that this added exposure is set to have a significant impact on the overall turnover of both Mitech and PCT and that thecompanies are readying them-selves for the increased turnover.
“We expect to start seeing the benefits in the third quarter of next year,” reports Ransome.
The deal has been in development since the third quarter last year but finally went through in June. Ransome explains that at the moment the company is still made up of three separate Pty Ltds but legal integration is expected very soon. The new controls group of products will be marketed under the name Spirax-Mitech.
“Physical integration is expected towardthe end of 2006 but Mitech will begin manufacturing Spirax Sarco products much sooner than that,” explains Ransome. Ransome adds that the acquisition of Mitech and PCT by Spirax Sarco has also focused the group’s sales ideology. “Essentially Spirax Sarco was a sales-focused company which also happened tomanufacture their products. Mitech and PCT were the other way around. The new arrangement allows Mitech and PCT to do what they do best, which is manu-facturing the products and freeing up the Spirax sales staff to focus on delivering better service to the client,” says Ransome.
The new group has sales branches around the countrywith the total number of staff employed in direct selling increasing from 10 to 50 people across the merger. Mitech was founded in 1985, producingrotary pneumatic actuators, which quicklydeveloped into linear actuators and control valves.The company currently employs 50people and is ISO 9001:2000 approved.In June of 2002 the company obtained TUVaccreditation to the European Pressure Equip-ment Directive 97/23/EC module H (PED)in respect of design, manufacturing and conformity to the directive.
PCT was founded in 1991 as an independantcompany designed to supply Mitech’s positioner needs and act as an independant supplier of positioners to the OEM market. To date, the company has supplied more than 20 000 units to the local market.
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Edited by: warren robertson
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