Increased valves stock to ensure market availability

9th May 2014

By: Mia Breytenbach

Creamer Media Deputy Editor: Features

  

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While valves and valve components supplier Macneil Steel & Valves (MSV) is currently involved in three significant projects, valued collectively at more than R5-million, in the sewage and water treatment industry, MSV project manager Brian Saverton says the company has also increased its stock to provide and ensure increased availability of locally manufactured valves.

“It is a new direction for MSV and valves manufacturer Aveng Manufacturing DFC, for which the company has been a local distributor for more than 15 years,” Saverton says, adding that DFC approached MSV with the proposal to increase the stock of its ranges last year.

MSV has been stocking DFC’s ranges of valves since January, with products that include DFC’s Vent-O-Mat range of air-release valves, the Leveldex range of level air valves and the Cla-val range of control valves, as well as the Vosa range of nonreturn valves and equili- brium float valves, which are all available immediately, upon request.

Clients can now receive the ordered products in a shorter time, as opposed to having to wait longer because of the time it takes to manufacture valves, as the supply lead time is halved, he explains, adding that, while MSV’s market share increases by distributing the valves, the focus on production at the DFC manufacturing plant is greater.

The company’s increased 20% stockholding has been equalled by a marked increase in enquiries and sales and a growing client base, Saverton says.

“However, we also plan to stock additional ranges of DFC products next year,” he comments, adding that the company has registered business growth of more than 30% in the last five years, with a 40% distribution of locally manufactured products and a 60% distribution of imported products.


Although Saverton notes an increase in prospects for the valves industry in conjunction with the sewage and water treatment industry, he expresses his doubts about the local valves designation policy and its imminent impact.

The valves designation policy, developed by the Department of Trade and Industry, states that 70% of valves procured by State-owned enterprises are to be manufactured locally. The instruction notice for the policy came into effect at the beginning of March.

“I understand the reasons for the policy’s implementation and, although I believe the concept is right, I disagree with the policy’s structure and manner of enforcement,” he says, stressing its potential detrimental effects on the local industry and the local market, such as increased production costs and increased lead times for products.

Further, he cites a lack of capacity and capability in the local foundry industry to manage the additional manufacturing demand as another key challenge.

“Although a key aim of the policy is to increase employment opportunities, the found-ation and capacity for foundries to manage the increased demand have not yet been met, or implemented, owing to lack of investment in industry,” he says.

Saverton concludes by emphasising the potential threat of job losses in the industry, as major valves importers may have to decrease their workforce, owing to a decreased demand for imported products.

“There is a definite marketplace for importers, but these businesses will suffer, owing to the policy,” he concludes.

Edited by Megan van Wyngaardt
Creamer Media Contributing Editor Online

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