WIRQUIN SOUTH AFRICA
WIRQUIN SOUTH AFRICA
France’s Wirquin to Expand Further
in South Africa PRODUCTION: David Napier
World leading sanitary equipment specialist, Wirquin, will expand its operations in SA following an extended period of growth. New products will be added to the portfolio, manufacturing capacity will be increased and marketing activities stepped up to help the company realise the potential of the Southern African market and assist in a global push for expansion.
2 / www.enterprise-africa.net
C
GRAHAM HOGG SA GROUP PRO CHANNEL DIRECTOR
INDUSTRY FOCUS: MANUFACTURING
//
Leading sanitary equipment specialist, Wirquin, was an idea developed in Western France, in the town of Carquefou near Nantes, in 1969. Dreamed up by Henri Wirquin, a sanitary ware wholesaler, the company was quick to mark its name in the industry, building a reputation for quality and innovation. In 1977, S.A. Wirquin Plastiques was officially established by Henri Wirquin and Daniel Le Coent, and the company moved forwards with product development and marketing, with much praise from customers. The ensuing years saw Wirquin grow internationally, opening up in Portugal, Spain, Romania, and South Africa in 2004. The company has also moved into Russia, China and the UK, and now has a presence in more than 80 countries around the world. 2017 marks 40 years of innovation Its vast product range is, according to Wirquin, ‘to improve the daily life of private households and professionals’. Its four core products are the ‘MW2 3/6 mechanism’, the ‘Quick-Clac’, the ‘JOLLYFLEX pipe’, and the ‘SLIM shower waste’. “ Today, these four products are known and recognized references worldwide,” Wirquin states. Globally, Wirquin is now home to 1400 employees with 85 in South Africa. Sales Director in South Africa is Graham Hogg and he tells Enterprise Africa that the company’s SA operation will play an important role in the group’s global expansion and, locally, Wirquin facilities and product range will be growing this year. “All of the subsidiaries in the group manufacture components and even finished goods for each other and our sales teams in those areas will determine which
4 / www.enterprise-africa.net
WIRQUIN SOUTH AFRICA
products will be suitable. SA has a range of toilet seats and flushing mechanisms that can be used universally around the world,” he says. With a leading manufacturing plant based in Somerset East, Wirquin SA hopes to contribute to the company’s global push into new markets including Russia, Brazil, USA and further afield. In terms of product range improvements, the nature of Wirquin, which is heavily focussed on innovation, means fresh ideas are regularly introduced and six new products will be introduced in South Africa in the coming months. “This year we will bring the NANO 6.7, EASY CLIC, SO LOW, VENISIO SLIM, LOCK+ and MODUFIX to the market. “The NANO 6.7 is an ultracompact basin waste and trap in one, available in four variations. The EASY CLIC is a universal retrofit 3/6l flush mechanism fitted without removing the cistern and comes with a 10-year guarantee. The SO LOW is the complete DIY solution that truly simplifies the installation of wet rooms in renovation projects and is available in 210mm and 500mm lengths. The VENISIO SLIM is a slim shower channel ideal for renovation, available in 300mm and 500mm lengths. The LOCK+ holds the toilet seat in place, stops seat movement on the pan, is a registered design and has a lifetime guarantee. The MODUFIX is ‘One toilet seat with five hinge possibilities’,” details Hogg. The performance of Wirquin in South Africa has been remarkable over the past few years with the company growing significantly, despite challenging trading conditions and an ailing manufacturing industry. The company’s health is so impressive that it is looking at fresh expansion strategies including increasing its
//SA HAS A RANGE OF TOILET SEATS AND FLUSHING MECHANISMS THAT CAN BE USED UNIVERSALLY AROUND THE WORLD// factory capacity and growing into new geographical markets when positive opportunities come about. “In the past 12 months, we have realised continued growth (+16%) despite tough economic times, and export into Africa, especially Egypt, has been positive,” says Hogg. “Originally, our factory was 1500 m² and in 2014 was expanded to have 3500 m² under roof. As we take further South African market share our capacity has become constrained and will shortly result in a further expansion being a necessity.
“Expansion further into Africa is dependent on stability and availability of hard currency; currently we are present in SADC countries and will look at other markets as and when solid opportunities arise,” he adds. There is also set to be further investment into marketing strategies, especially surrounding the company’s website and social media presence, and Hogg says that “social media has revolutionised marketing and will continue to do so, and market trends dictate at least a good website is needed to effectively
Fenleys Plastics is a plastic manufacturing company established in Uitenhage Industrial, South Africa. We have seen the growth of the company encompass a network of national and international customers since 2010. Fenleys Plastics supplies industries with both virgin and recycled plastics, which include printed bags. In addition, Fenleys Plastics is well established in supplying the retail market with refuse bags, construction industry, fishing, automative, salt, FMCG The company is a fully B-BBEE owned and prides itself in service excellence to all customers. Contact us now for all your plastic requirements 27 Eiffel Rd Kruisivier Uitenhage Eastern Cape South Africa 041 9225305 admin@fenleys.co.za
www.enterprise-africa.net / 5
INDUSTRY FOCUS: MANUFACTURING
//IN THE PAST 12 MONTHS, WE HAVE REALISED CONTINUED GROWTH (+16%) DESPITE TOUGH ECONOMIC TIMES// communicate with customers”. DEEP SA HISTORY The staff and management at Wirquin’s South African operation have a long history in the industry and, after 13 years of successful operation and growth, the company is now a highly-significant part of the global organisation. “Between 2000 and 2004
6 / www.enterprise-africa.net
Wirquin was imported and distributed by Actebis 356 CC, a company started by myself,” explains Hogg. “To unlock competitive pricing from the Wirquin Group, and to cement the global strategic position in the OEM industry, the shareholders of Wirquin in Europe purchased the majority share in the converted CC namely Wirquin SA (Pty) Ltd in 2004.
“Initially this was an import and distribution company based in Somerset East in the Eastern Cape. In 2006, Wirquin Manufacturing was formed and the process of building a factory in Somerset East was started. The factory officially opened in 2007, initially producing flushing mechanisms and toilet seats. Today the factory manufactures toilet seats (both thermoset and thermoplastic), flushing mechanisms, plastic cisterns, solar tank cisterns and a range of components to supplement imported components to manufacture wastes and connectors. “Orientation is given by the group board, and global targets and KPI’s are set by group in conjunction with the respective Plant Managers and Market Development Unit Managers,” he says. The innovative products that Wirquin manufactures and sells in SA, and across the Southern African region, have vastly improved the way water is used and Hogg is proud to say that the company’s contribution to water-saving is massive. “Currently, Wirquin saves approximately 10 billion of litres of potable water every year in South Africa due to its MW2 Dual Flush mechanisms. We estimate since the launch of Wirquin in South Africa, thanks to the 3/6L Dual flush, we have helped the country save in excess of 140 billion litres of drinking water - approximately 225 days consumption for the city of Cape Town which is currently under severe water restrictions of 100l per person per day,” he says. ECONOMY IN THE DRAIN? While the progress of Wirquin in South Africa has been fantastic since 2004, the uncertainty of the future has raised issues within the industry and manufacturers are
WIRQUIN SOUTH AFRICA
finding it difficult to plan for the future with a lack of commitment to projects from clients. This combined with the health of the economy, downgraded by credit agencies and dropping into technical recession, makes for a challenging environment. But Hogg remains optimistic saying that those that are positive in tough times are those that emerge in a strong position. “Does the current economic climate concern me? In a word – No. I believe that the opportunities outweigh the negatives. In trying times, it is the bold and resolute companies that will succeed. The biggest challenge is not to get sucked into the quagmire of negativity surrounding the levels of blatant corruption that have been exposed. “The regulatory, and political environment increase the risks associated with capital investment and midnight cabinet shuffles that result in credit downgrades do not exactly encourage people to spend money on long term projects,” he says. Alongside the health of the economy is the threat of cheap imports from the Far East that provide competition for Wirquin. But again, Hogg is confident. “Due to our brand positioning, there is not a direct impact, however they
//WIRQUIN SAVES APPROXIMATELY 10 BILLION OF LITRES OF POTABLE WATER EVERY YEAR IN SOUTH AFRICA// tend to draw the whole market lower which obviously affects margins. “We are separated from competitors by four key elements in our business. First, innovation – it is in the DNA of Wirquin. Second, quality – which is not negotiable. Third, our comprehensive range of products; and lastly, market penetration – we effectively serve all sectors including PRO, DIY and OEM.” Key areas that do bring about a cause for concern are human resources and currency pricing. “It is difficult to find well trained and educated employees, across the entire spectrum of disciplines. The skills gap is apparent especially at middle management level,” says Hogg. “However, training is always a priority.” In the past 12-months, the Rand has traded at anything from 17 to 13 against the Euro, and has not showed consistency for a significant period. This creates challenges for Wirquin. “A business can manage a declining or
strengthening currency, however volatility always introduces risk – it seems that the Rand is easily moved both by international and local developments.” However, despite these hurdles, the company remains resolute that the future is bright. It’s increasing product range, improving facilities, strong local supply base, and ongoing growth make for an extremely robust business case. “Going forward, our targets are between 8-12% growth year-onyear, provided that the country is not downgraded further,” says Hogg. Globally, the international expansion of Wirquin over the past 40 years has been sensational. In South Africa, its 13 years have been equally as exciting and the growth looks set to continue.
WIRQUIN SOUTH AFRICA +27 42 243 6000 www.wirquin.co.za
www.enterprise-africa.net / 7
Published by CMB Multimedia Chris Bolderstone – General Manager E. chris@cmb-multimedia.com Sackville Place, 44-48 Magdalen Street, Norwich, NR3 1JU T. +44 (0) 20 8123 7859 E. info@cmb-multimedia.com www.cmb-multimedia.com CMB Multimedia 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 Multimedia Ltd 2017
A S F E AT U R E D I N
ENTERPRISE AFRICA
J U LY 2 0 1 7