CT A LU M I N I U M
CT ALUMINIUM Manufacturing Quality and Strength =
Solid Sustainable Growth PRODUCTION: David Napier
Leading window, door and shopfront business, CT Aluminium, is bucking the trend when it comes to growth in the manufacturing industry. By carefully investing into new technology and approaching business with a sound strategy, the company has done nothing but expand since 2014. Production Director, Gareth Gilks talks to Enterprise Africa about the success of this expert aluminium and glass organisation. www.enterprise-africa.net / 3
INDUSTRY FOCUS: MANUFACTURING
//
South Africa’s manufacturing industry has been in decline for the last decade. In the past, the country has been a strong manufacturer, known for its expertise across multiple industries including automotive, textile, metals, chemicals, electronics, food and beverage products, and many more. But with cheap imports of extrusions coming from around the world, high costs associated with labour and distribution, and a lack of skills, local manufacturing has struggled. In 1997, manufacturing contributed 18% of the country’s GDP. Last year, that figure was down to 11%. The global financial crisis impacted on the industry hard. With the wider economy growing at no more than 2% between 2008 and 2012, manufacturers have faced many hurdles. Across Africa, manufacturing has been hailed as a solution to unemployment and balance of payments concerns, but with the fast onset of the Fourth Industrial Revolution, many companies are struggling to keep up and the fear is that manufacturing could again fall to the wayside. For South Africa, President Ramaphosa has highlighted manufacturing as part of his plan to
// THE KEY IS TO GET YOURSELF INTO A POSITION SO THAT WHEN TIMES ARE TOUGH AND THE OPPORTUNITY FOR WORK IS LIMITED, YOU ARE THE PREFERRED SUPPLIER THAT PEOPLE WANT TO APPROACH // 4 / www.enterprise-africa.net
stimulate economic growth. By the end of 2018, he was already ahead of his target to attract R100bn in FDI, and big manufacturers including Nissan, Ford, Mercedes-Benz, BAW SA, Defy and many more have made hefty commitments to the country. On the ground, it seems as though the tide is turning, at least for some of the country’s quality-focussed manufacturing businesses. For Cape Town-based CT Aluminium - a leading supplier of aluminium windows, doors and shopfronts - investments into modern technology and a positive approach to business have helped the company to achieve impressive growth. “Last year was a tough year but, thanks to good management, we created a buffer for lean times,” explains Production Director Gareth Gilks. “That allowed us to get into a position where we could ride out the storm. Things are a lot better this year and, yes, the economy remains weak, not growing as it should be but there is still development taking place and the key is to get yourself into a position so that when times are tough and the opportunity for work is limited, you are the preferred supplier that people want to approach. “Providing a good product, with good service, while being competitive, we have placed ourselves in a position so that we are well-known in the Western Cape and the people that deal with us know that they can rely on us. Word of mouth has taken us a long way and right now, we are extremely busy,” he says. MANUFACTURING SUCCESS Founded in 2000, CT Aluminium began as a small-time manufacturing business, serving a small client base from a small rented building on a farm in Durbanville. After initial success, Richter van Renen bought into the business as a partner and eventually became the sole owner. He continued with a focus on quality. By 2012, the company’s
// WE CHOOSE TO NOT COMPETE ON PRICE ALONE. WE OFFER FANTASTIC SERVICE AND REPUTATION, AND WE ARE BACKED BY QUALITY // reputation spanned the Province and CT Aluminium had become the go-to supplier in the Western Cape. Capacity had been reached and a move to bigger premises was required. In 2014, the company settled into its new home at the Brackenfell Industria. “Since we moved in 2014, all we have done is grow. We are now at a point where we need to stop growing so quickly and consolidate everything and streamline so that we can look at growth again. In 2015, we became a (Pty) Ltd,” states Gareth. Key in the company’s growth has been investment into new technology that has improved efficiency, quality and capacity. By sourcing machinery from Europe, CT Aluminium has aligned its tech with the best in the industry. Over the past two years, R8 million has been spent on profiling, cutting, glass and double-glazing technology. “The first big buy we completed was from Elumatec which supplies profile machining centres to the aluminium and UPVC industry and is a world-leading company,” details Gareth. “In 2015, they came to us with the idea for a revolutionary machine called the SBZ628. It is a fully automated profile machining centre and it eliminates a lot of manual work. We looked into the idea and learnt more about the technical details and we decided to go for it. We placed the order in 2015 and they started building it. In September of that year, Elumatec had a trade show at their factory in Germany and we
CT ALUMINIUM
went over the look at the machine for the first time.” Elumatec installed the machine at CT Aluminium’s site in February 2016 and it was just the second installation in the world. “Currently, it remains the only machine of its type in Africa and the only one in the southern hemisphere. It gives us an extreme advantage,” says Gareth. Efficiency, safety and labour savings have all been achieved since the installation was completed. “Previously, we would send down paperwork with cutting lists for operators on saws. Now, everything is programmed on computers in the office and that programme is exported to the machine which tells the operators which profiles to load onto the conveyor belt and the machine does the rest. Everything comes out
of the other side with labels printed so that the assemblers know exactly where each part goes. It has allowed us to redistribute staff to other areas of the production line, taking them away from the processing part and moving to the assembly line.” GLASS UPGRADE After the Elumatec SBZ628 was installed, CT Aluminium’s production capacity grew significantly and the machine helped the company to push through bigger numbers. While this was of course a real boost for the business, it was creating a bottleneck in the glazing department. “We decided that the next step must be to automate the glass department which was still very manual,” Gareth explains. “We approached FG Trading and created a glass processing plant inside
our existing factory. We invested into two new Macotec cutting tables from Italy, one is an automated float glass cutting machine and the other is an automated laminate glass cutting machine. We also invested in an inline polishing machine so that we can process our glass, especially performance glass, and a washing bay to clean the glass.” A new overhead crane with a suction unit was added so glass could be moved around the factory safely and quickly. All of this new equipment meant that the building had to be expanded but management was more than willing to make the investment so that quality, efficiency and productivity could improve. Another addition to the glass system is a double-glazing machine. Double-glazed windows trap air
www.enterprise-africa.net / 5
INDUSTRY FOCUS: MANUFACTURING
between two glass panels reducing heat loss, dimming outside noise, and improving efficiency performance. The introduction of CT Aluminium’s new machine - being installed in June - will allow the company to cater for its own requirements, avoiding long waiting times. “It’s big enough to be able to manufacture what we need for ourselves. It’s solely for inhouse use as currently, we are waiting from seven to 10 working days for double-glazing from other suppliers,” says Gareth. RENEWABLE ENERGY INVESTMENT One of the major hindrances for South Africa’s manufacturing businesses has been security of energy supply. Manufacturing is an energy intensive industry; it requires a constant supply of electricity, especially as machines take on more and more of the workload. Eskom has faced significant challenges keeping the lights on and load-shedding has returned in 2019. For CT Aluminium, this is unacceptable
6 / www.enterprise-africa.net
so the company has taken action, investing in a solar panel and wind turbine installation to bring muchneeded power to the factory when the national grid fails. “Production is important and any interruption to our production can have major impacts on the business,” admits Gareth. “Going down the renewable route, apart from saving money on electricity, offers us consistency and reliability so that we can keep manufacturing regardless of the situation with Eskom.” Solar panels are already in place on the roof and they contribute to the company’s power system, but when the wind turbines are installed later this year, CT Aluminium will have the potential to be almost completely selfsustainable as Gareth explains. “It makes a lot of sense to go that way,” he says. “Electricity is expensive wherever you are and, in South Africa specifically, supply has been inconsistent with recent spates of power outage; unfortunately, it doesn’t
look like the situation will be sorted anytime soon. Without electricity, manufacturing is impossible. So, we are currently in the process of having renewable energy installed. We have solar panels on the roof of the building already and by the end of June, we should have four large wind turbines installed as well. On a sunny day with a nice wind, we should be able to go off the grid. “The solar panels are a small component of the whole installation; the wind turbines will generate the majority of the electricity. There’s not a significant benefit from just solar on its own but when combined with wind turbines, we will start to see the real benefits. The technology is all coming out of Europe and it is an investment into security of supply.” PROJECT BUSINESS Despite the economic challenges that have plagued the country, and the SADC region, South Africa’s Western Cape – particularly the Cape Town metro area
CT ALUMINIUM
– has been somewhat sheltered when it comes to property development. According to leading real estate business, Knight Frank SA, coastal cities are among the most desired when it comes to residential property – the area where CT Aluminium is strongest. “The major coastal cities of Cape Town, Port Elizabeth and Durban outperformed inland markets. This trend was driven in part by demand from domestic buyers relocating to the coast from inland cities for lifestyle reasons, with locations in Cape Town and along the Western Cape coast generally attracting the strongest interest,” the report stated. The city itself is seeing a number of new apartment blocks being developed, there are several retirement villages and gated communities under construction, and new private housing estates are popping up all over Cape Town’s suburbs. For CT Aluminium, strong relationships with property developers including Rawson, Devmark Construction and GLC Developments make for an exciting project pipeline. “Right now, the Evergreen Lifestyle Village is a big project for us. It’s an upmarket retirement village which is situated in Val de Vie Estate in the Western Cape. Val de Vie is probably the number one estate in South Africa and it’s a big project where we are busy with Phase 1 which will go on until around October this year. We are also hoping to be awarded Phase 2; so far, it’s looking good, but nothing is guaranteed,” says Gareth. The entire project consists of around 400 units with Phase 1 consisting of 81 units. “We are responsible for the windows, doors, garden gates, and pergolas for garages and patios.” An apartment block started in 2018 is nearing completion right now. “It’s a big project for Rawson Property Developers. We are working on an eight-story building and it was the fourth building we have done with
LEADING MANUFACTURER OF ALUMINIUM SYSTEMS CT Aluminium is a long standing elumatec customer. From humble beginnings to a world class manufacturing plant elumatec is proud to have been part of their journey. Understanding the principal that “only quality can produce quality” their management invested in the latest machine technology supported by innovative software to complement their already quality driven operation. Elumatec wishes them well with their new products and is looking forward to being part of the next chapter of CT Aluminium’s journey.
www.elumatec.com +27 21 5514 420 capetown@elumatec.co.za
www.enterprise-africa.net / 7
INDUSTRY FOCUS: MANUFACTURING
// WITHOUT ELECTRICITY, MANUFACTURING IS IMPOSSIBLE. SO, WE ARE CURRENTLY IN THE PROCESS OF HAVING RENEWABLE ENERGY INSTALLED // Rawson,” Gareth explains. He says that work with Rawson in 2017 displayed the value of the company’s new technology. “They were busy with two buildings that went up simultaneously and that was a challenge. The factory goes into overtime and the investment into new machinery starts to really prove its worth. There is absolutely no way would have been able to take on such a job without those investments.” Rawson and similar clients are perfect partners for CT Aluminium as
8 / www.enterprise-africa.net
the focus is all about quality. All CT Aluminium designs are verified using AAAMSA (Association of Architectural Aluminium Manufacturers of South Africa) specifications and guidelines, and the company’s technology ensures international quality standards are met. “When Rawson approached us for the first building, the contract was out for tender and we won that contract despite being unknown to them. We got to refine our methods while working in that first building and since then we have moved forward with the same formula which works very well,” says Gareth. Because of the number of projects underway in the Western Cape, and the ongoing desire for residential property in the area, CT Aluminium’s expertise is now in high demand. “Between Evergreen and everything else we have going on, we are very busy. There are a number of upmarket estates going up right now and quite a few of our long-term clients are working in these estates.
“We are hoping to get Phase 2 at Val de Vie, Rawson will be putting up another building later this year and we hope to be involved there, and then there is GLC Developments which is putting up mixed estates and apartment blocks and has some exciting projects in the pipeline,” details Gareth. STRONG AGAINST COMPETITION CT Aluminium’s product is proven in various environments. It is made in South Africa, for South African conditions. It is made to specific strength standards and this sets the company apart from its competitors who often focus on price over quality. “We buy all of our profiles and extrusions from WISPECO stockists,” states Gareth. “They are the biggest extruder in Africa and have been around for decades. A few years ago, we decided to only use WISPECO profiles so that we could rely on quality, technical back up and more. “There are a lot of other suppliers
CT ALUMINIUM
Stockist & supplier of all Crealco Architectural Aluminium Extrusions and related Hardware
Beyond a Stockist
At Bauxite Extrusions and Hardware (Pty) Ltd we pride ourselves in quality and service. We understand the demands of the construction industry and therefore understand the importance of delivering the correct, quality aluminium extrusions and hardware on time. We assist in the following: • Tender Support • Technical support at factory & on site • New extrusion designs & die cutting • Shop drawings We are a proud Crealco Distribution Partner (CDP) and AAAMSA Corporate Member. All of our aluminium extrusions comply with the British Standard of Aluminium Extrusions BS EN 755:2008. Our Powder Coating Applicators carry the Qualicoat Seaside mark for all exterior and interior architectural aluminium extrusions.
Unit 3, 52 Willow Road, Bellville
of the same-looking systems who import cheaper profiles from China. They decrease the wall thickness and make things lighter as the price is based on the weight of the extrusion. When you put together a product like a window or a door, these extrusions look the same but they do not perform the same way and that is a challenge for us. Consumers are price sensitive and are not always aware of what they are buying. It’s difficult to compete against others like that but we choose to not compete on price alone. We offer fantastic service and reputation, and we are backed by quality. At the end of the day, we offer lots of technical expertise, we have an inhouse draughtsman, and we have years of industry knowledge – that goes a long way.” Because of this focus on quality,
|
021 204 8232
|
Corporate Member
collin@bauxitestockist.co.za
CT Aluminium has outlasted many of its rivals in the industry and is now positioned perfectly for further growth. Gareth even hints at expansion into new markets as the company approaches the end of its second decade in business. “We are looking at getting into the aluminium shutters market and if that takes off, there is no more space in our building so we would have to run that from a new business premises.” Whatever challenges the economy is facing, and however the manufacturing sector is performing, CT Aluminium makes it abundantly clear that success is very achievable and, with the correct strategy, ongoing growth can be realised. “Personally, I feel that things are going to get better in the economy. We are not having discussions about what
we will do if things slow down - we are only talking about growth. You have to keep up the momentum because if you don’t you will lose any advantage,” says Gareth. “When times are difficult, that is not the time to crawl back into your shell and wait for things to happen. Those are the times to see opportunities and get a step ahead so that when things improve, you are already ahead of the competition. You have to use the bad times to your advantage to get ahead of the curve,” he concludes.
WWW.CTAL.CO.ZA
www.enterprise-africa.net / 9
Published by CMB Media Group Chris Bolderstone – General Manager E. chris@cmb-media.co.uk Sackville Place, 44-48 Magdalen Street, Norwich, NR3 1JU T. +44 (0) 20 8123 7859 E. info@cmb-media.co.uk www.cmb-media.co.uk CMB Media Group does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher. Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. Š CMB Media Group Ltd 2019
AS FEAT UR ED IN
ENTERPRISE AFRICA
J UNE 2019