YNF Engineering by CMB Media Group

YNF ENGINEERING

YNF Engineering’s Young Team and

Big Growth

Completely bucking the current recessionary trend in South Africa, YNF Engineering has seen a remarkable growth trajectory from a turnover of about R10 million a year in 2011, to over R100 million today. It was in 2011 that Jade Orren – at the tender age of 24 – took over the reigns of the operation as the youngest CEO in the country in the sector following his father’s passing, and instituted a new direction for the company. Fritz and Natasha Orren had started YNF (which stands for Yolanda, Natasha and Fritz) in 1995 as an electrical engineering company. Fritz had an engineering background and had previously worked for company’s servicing and repairing equipment for various mining sectors. He started manufacturing and reconditioning

a range of subcomponents, first for the mining and then for the railway industries. Subsequently, the operation expanded into the full repair of components such as traction motors, alternators, transformers, and low voltage machines. Today the company manufactures and repairs a wider range of components and sub-components for the railway, mining, and power utility industries. Jade Orren refers to YNF as a “one-stopshop”, offering the complete package in component supply and repairs, particularly for the railway and mining industry. It’s a unique offering as no other company delivers such a comprehensive range of products and services, and it manufactures 80% of the sub-components in its range. Orren had been on a sales call to Transnet and recognised the potential for growth if

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INDUSTRY FOCUS: ENGINEERING

YNF undertook to provide all the services that Transnet provides, apart from building the complete train. That move boosted the growth of the company and has resulted in rail transport representing about 80% of the company’s business. Orren mentions that most popular in their product range are rotating machines and wheels, and low voltage motors, which can be used in many applications – from massive gear boxes and winches, down to small motors like swimming pool pumps. The company’s strengths also include quick turnaround times and guaranteed quality because of in-house manufacturing, which means they’re not dependent on external suppliers for their product quality. Orren says his father’s motivation for starting the company was to become financially independent and to establish an ongoing empire for his family. The Orren family are continuing to build the legacy and succession plans are in place to ensure the company’s longevity. Natasha Orren, an original founder and Fritz’s wife, is owner and chairperson of the company, making it the only 100%

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black-woman-owned company in the country in the sector. She also heads up Human Resources, leaving her sons Jade and Ricardo as CEO and Financial Director respectively, to manage the day-to-day operations. Her daughter Melissa also works in HR, and her youngest son, Fritz Jnr is running a sister company to YNF. The family has expansion plans for YNF. Orren admits that his aim for the company has evolved from his father’s original objective. “We’re different men with different visions. My aim is for the company to become a preferred transport solution in Africa. We’re heading in that direction.” At this stage, the company can boast being the industry leader in the railway industry and one of the leaders in the other sectors it operates in. Orren himself joined the company straight out of high school. He had had a mind to become a rapper, but his father “laughed at me” he says, and gently steered him into the family business. He has “no regrets.” He started sweeping floors and worked his way steadily and conscientiously through every department in the company, learning the business inside out as he went, and

gaining excellent insight into all the jobs. He says the next step for YNF will be to build a national footprint in South African and further into Africa. “The opportunity and economic circumstances are in our favour. Transnet recently bought 1064 locomotives, and Prasa’s procurement of Alstoms of 600 X’Ttrapolis Mega commuter trains – is the biggest contract ever given to the company. The railway industry is booming and there is a lot of opportunity for a company such as ours to thrive.” New YNF workshops will be duplicates of the existing operation, servicing regions within the railway industry with rotating machine repairs and wheel repairs. In this sector certainly, Orren is convinced that South Africa is the gateway to Africa. “South Africa has sound infrastructure to service the rest of the continent.” At this stage, YNF Engineering is already active in countries to the north, servicing mines and railways in countries that include Mozambique, Namibia and Botswana. Looking further into the future, he says the future of electric motors is in AC motors as opposed to DC, and AC traction

YNF ENGINEERING

motors in railways specifically. “It is much cheaper to maintain AC, it is easier to prevent an AC motor being damaged, or burning its windings through the installation of new technology – the options are greater. DC motors present problems with current overloads, with voltage surges, and needs a lot more maintenance and man power.” But the bottom line is that the DC motor market in South Africa will continue for another decade, in his opinion. “Because of the population and the infrastructure in this country, the DC motor is still very popular choice. We will eventually follow Europe and the rest of the world where the AC motors are being used.” While Orren is concerned about political stability in South Africa, which is a problem area for just about everyone in the country, he concedes that government has shown its commitment to railway infrastructure through massive

investment. “This means that for a company like YNF that has such a large proportion of its turnover from the railway market, we can rest assured that we will have a lot of maintenance work coming our way over many years.” This also means that the economic downturn is not directly affecting the business and that it continues to invest and grow. Even the fluctuating Rand is not impacting YNF as it doesn’t buy imported products, and most are sourced locally. “As far as we are concerned, South African industries are in a relatively strong position. The mines are cutting jobs, but they are still operational. It certainly helps being a diverse company that is not dependent on one single market,” he says. YNF employs 150 full-time people. Jade is proud of his staff. “Staff turnover is low and those with skills have been with us for a long time. Because we are really one-of-a-kind in our industry, all

the in-house staff development, training and upskilling programmes that we run continuously are adding value and skills to our industry as a whole. It’s a good place to be.” Orren’s criteria for new staff members, apart from the essential skills for the job, include enthusiasm, an eagerness to learn, and a determination not to give up because engineering is a highly challenging industry. “We also look for vibrant young people – after all this company is run by young people.”

YNF ENGINEERING (011) 477 2170 sales@ynf.co.za www.ynf.co.za

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