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Commercial viability a driving force

Commercial viability a driving force

Johannesburg, 25 March 2021 – Commercial sustainability in tough economic conditions remains one of the driving forces behind Macsteel’s business transformation journey.  In June 2020, Macsteel merged Macsteel Trading Pipes, Fitting and Flanges into Macsteel Fluid Control, which has since achieved the forecast growth it set out to achieve.  The merger required an extensive change management programme that was not without its challenges, but has yielded great success.

The merger was built purely on the synergies between the valve and piping businesses.  The valve business has always been Macsteel Fluid Control since 2007 while the piping business formed part of the greater steel business. We understand the necessity for change in business and why it’s important to our company, consequent to close scrutiny we realised that in order to remain competitive, sustainable and relevant we needed to evolve.  Prior to the merger the businesses were less effective in working across the divisions however this has been strategically remedied through the amalgamation of the two business units.  With the new integration the business can continue to supply products manufactured within each business unit but now under one roof. This complete solution is offering improved results for both existing and new customers.

Macsteel Fluid Control currently holds 11 international licensing agreements with 11 different suppliers as well as a number of informal agreements. Courtesy of the business’s strong performance over the years and excellent relationships with these international principals, Macsteel carries the rights to represent their products in the African market.

A good example is the partnership that started in 2018 between LNT India and Macsteel Fluid Control.   Based in India, LNT India is also a leader in fluid control solutions drawing on the extensive experience and heritage spanning six decades to deliver bespoke valve solutions to the oil and gas, power, petrochemicals and chemical industries.  Macsteel Fluid Control acquired the exclusive rights for sub-Saharan Africa and currently carries the largest stockholding of approved gate, globe and check valves in Southern Africa.

Macsteel Fluid Control’s investment in stock, pressure testing and positive material identification (PMI) equipment enables the business to assist clients in all sectors, but specifically the oil and gas industry.

Macsteel Fluid Control has two mainstays:  Amri Butterfly Valves and Bermad Hydraulic Control Valves, both of whom have been part of the Macsteel group for about 30 years and contribute a large portion of business.  An area ripe for growth opportunity are the number of smaller agencies under the Fluid Control banner, however they are more technical and have more niche product offerings.

What sets Macsteel Fluid Control apart from the competition is their ability to provide service, back-up, and technical support on behalf of their licensing partners as a turn-key solution.  Not only do they represent the agency in the market, they carry the stock and employ the correct skills and expertise to represent the products and understand the technical attributes.  Essentially, Macsteel Fluid Control provides great stock holding without typical lead times of importing parts on demand.

Macsteel Fluid Control Business Development Specialist, Carol Lloyd says, “We too carry a diverse range of carbon & stainless-steel pipes, fittings & flanges to assimilate our full range of piping components operating within the requirements of ISO 9001:2015 Quality Management Systems.  This is further supported by our in-house manufacturing of plain ended ERW pipe to SANS 62-1 and SANS 719.  The range of piping include for both welded and seamless types with complementing fittings and flanges to suit from 6 to 1200 nominal bore.”

Macsteel Fluid Control also supplies value-added steel pipe systems for the conveyance of petrochemicals, liquids and gases in the petrochemical, mining and potable water industries.  The product portfolio includes more traditional systems such as Threaded & Coupled, Flanged, Shouldered & Grooved in various coatings & linings including galvanising, painting, rubber lining, cement mortar lining, Denso wrapping to meet customer needs.

“The merge is set to unite the strengths of both teams bringing efficiency and as well as numerous other benefits to our valued customers.  Being a strategically focused business unit ensures that the right resources are assigned to the requirements of the Macsteel Fluid Control supply chain nationally,” says Lloyd.

Rowan Blomquist, CEO of Macsteel Fluid Control says, “We understand that change is necessary and provides a great opportunity to generate new value, unlock new prospects and drive new growth to deliver new efficiencies. The current economic climate dictates the necessity for business reform in order to remain competitive.  To retain our competitive edge, we are regularly evaluating how our business creates value and sustains growth and in doing so are continuously pursuing reinvention.”

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