MACNEIL PLASTICS
MACNEIL PLASTICS
Long Lasting, Superior Quality From MacNeil Plastics PRODUCTION: Manelesi Dumasi
Cape Town’s MacNeil Plastics is looking to capture market share with new products and superior quality. The company has partnered with a European specialist to bring the very best to its South African customers. Managing Director, Derek Faulds talks to Enterprise Africa about the company’s strong position. www.enterprise-africa.net / 3
INDUSTRY FOCUS: CONSTRUCTION
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“It’s a very exciting time at the moment,” says MacNeil Plastics Managing Director, Derek Faulds. Since separating from the MacNeil Group, which handles wholesale and distribution of a range of building supplies, MacNeil plastics has forged new relationships with international partners in order to bring first class quality and service to clients in Southern Africa. Founded in 1993 as part of the MacNeil stable, MacNeil Plastics has built its reputation over the years, becoming known as a leading manufacturer of plastic pipes and fittings within the PVC (polymerizing vinyl chloride) civils and merchant industries. Headquartered in Somerset West, Cape Town, MacNeil Plastics works from a large, ISO-certified
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manufacturing facility that operates 24 hours a day, throughout the entire year. The company’s more than 300 people are highly experienced and knowledgeable with the product portfolio and have managed to develop market share in regions all over Southern Africa. “We export around 5% of our product to other African countries including Namibia, Botswana, Mozambique, Zimbabwe but the majority of our production is for the local South African market,” says Faulds. But, while he is keen on developing the company’s exposure to the export market, Faulds explains that MacNeil Plastics has developed a partnership with European manufacture to bolster its already impressive product range. “Technology in the industry is developing,” he says. “Companies in
Europe have made great strides in terms of oriented PVC (OPVC) and we have a partnership with a Spanish company called Adequa with whom we import OPVC. The development of polymer plastic is obviously trying to improve the image and make plastics more acceptable considering the current environmental challenges in packaging. From a plastic pipe point of view, we manufacture a product that is 100% recyclable and we want to make plastic a completely viable alternative to concrete or steel or other products. Technological development continues but there are limitations to the amount of innovation that you can achieve – a pipe is a pipe – but longevity, resistance to corrosion, ability to resist elemental and chemical attack which effects flow, and other factors are all things that we work on continually with our partners in the market.
MACNEIL PLASTICS
// WE WORK WITH OUR CLIENTS ALL THE WAY UP UNTIL THE POINT THAT WE PASS THE PIPE OVER TO THE CONTRACTOR FOR INSTALLATION // “We have only been working with Adequa for a few months and we are now their preferred distributor into Southern Africa for OPVC. OPVC is the top of the range and you can make a pipe that can hold an equal amount of water but using less plastic. Adequa have got the machinery and technology to make OPVC and we hope to gain that ability in time.” LONG LASTING QUALITY At the end of 2017, South Africa’s struggling economy was at breaking point. Viewed by international investment houses as a risk, and
downgraded by credit agencies, the country was in something of a rut. But, following the appointment of President Ramaphosa, business confidence has improved and the landscape for commercial activity has improved. But Faulds says that the quality of MacNeil Plastics products and services has moulded the company into an industry leader, irrespective of economic plight. “We differentiate ourselves by quality,” he says. “There are a number of pipe manufacturers in South Africa but we are members of SAPPMA (Southern African Plastic Pipe Manufacturers
Association) and I serve on the Board of that association. Our adherence to quality standards and specifications is absolutely non-negotiable. Our customer service and our delivery to site is first class. We work with our clients all the way up until the point that we pass the pipe over to the contractor for installation. Where possible, we try to give advice on the appropriate pipe for use in the project. We are not simply a manufacturer who makes the pipe, hands it over and washes our hands of it; we want to see things through until completion.” The company ensures quality throughout its product range by sourcing the best raw materials and components from all corners of the world. Where a leading material is not available in South Africa, reducing quality is not considered. The company
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INDUSTRY FOCUS: CONSTRUCTION
searches out exactly what is required. “We get a lot of raw materials from Sasol – our local manufacturer, but we’re also importing raw materials from a variety of locations around the world. We stay away
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from China but we do import from Thailand, Malaysia, the Middle East, Europe, and North America as long as they can deliver quality,” explains Faulds. Providing products of the highest
// WE ARE LOOKING TO INCREASE OUR OUTPUT CAPACITY BY 30-50%. WE’D ALSO LIKE TO CREATE 10% MORE JOBS // possible quality does not only bring benefits to MacNeil Plastics and its clients; it is also advantageous to the wider community in which the products are utilised. “We are based in the Western Cape and we are going through one of the worst droughts we have faced in the past hundred years,” details Faulds. “We are very dedicated to responsible water usage and responsible purchasing of water management systems, which includes pipes, so we try to differentiate ourselves through quality of service. When the quality is there, less water is lost through inefficient piping.”
MACNEIL PLASTICS
MANUFACTURING A STRONG FUTURE MacNeil Plastics is a now standalone pipe manufacturer and thanks to its frequent and sustained delivery of quality products and services, it is now positioned perfectly to grow. Faulds, who has been with MacNeil Plastics for three years and was previously with the MacNeil group since 2009, sees increases in export and manufacturing capacity as key focus areas for the future. “We are looking to increase our output capacity by 30-50%. We’d also like to create 10% more jobs on top of what we offer the local community. We want to upskill our staff and address the skills shortage in the industry. We also want to serve the South African mining, construction and agricultural sector by providing them with quality piping, ensuring water security.” He adds that excess capability in the factory is likely to be taken by export demand, saying: “We are aiming to grow our export market. We have
// OUR ADHERENCE TO QUALITY STANDARDS AND SPECIFICATIONS IS ABSOLUTELY NON-NEGOTIABLE // just appointed a new Sales Director and exports will be one the major focuses. We have excess capacity in the plant so we are hoping that exports will become around 20% of our sales by the end of the year.” And new product development is always a focus. New products for this year include a range of microcellular polyvinyl chloride (mPVC) goods. “We are involved in the supply of all of the pipe for a development in the Hex River Valley. We’ve also just launched our MPVC range of pipes for the market. Previously, we only made UPVC and so adding the MPVC means we cover both ranges, in all sizes from 50-400mm,” explains Faulds. Going forward, the future looks strong for MacNeil Plastics. The company is facing its challenges head on and investing in training and selfsustainability to ensure it overcomes
any unpredictable hurdles. “The biggest challenges we have faced is managing the procurement of appropriate raw materials. In South Africa, we had a period where we experienced major load-shedding and that was a big challenge for us. We are also faced with a major skills shortage in terms of working with polymer plastics,” says Faulds. The company’s reputation and undoubted skill set will stand it apart from the crowd, and with ever-growing demand for products showing no sign of abating, MacNeil Plastics is perfectly placed to continue its flow across the entire South African market.
WWW.MACNEIL.CO.ZA
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May 2018
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ENTERPRISE AFRICA
MAY 2018