SA Metal Group - Dec 2019

S A M E TA L G R O U P

SA METAL GROUP

100 Strong Years and Counting…

PRODUCTION: David Napier

How many companies in South Africa make to the magical 100-year mark? Even rarer, how many make it through an entire century while remaining under the stewardship of the same family? SA Metal Group has done exactly that, celebrating 100 years in business in 2019, now under the fourth generation of Barnett family leadership.

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For 100 years, SA Metal Group – one of the country’s oldest and biggest metal recycling companies – has been processing South Africa’s scrap and turning what some consider trash into treasure.

It has been a long and interesting journey for this South African stalwart.

As a business, the company has found a golden model – turning waste, that is classed by others as worthless, into valuable product. This has long been the company’s mantra, and stems from the early days, more than a century ago, when Wolfe Barnett watched his father push a wheelbarrow around the streets of London, England collecting scrap for resale. In 1890, this was a tough job, physically demanding, and for little return. Eventually, in 1900, the family emigrated to South Africa, following many Brits heading for a new horizon in the lush and fresh Cape.

In 1919, in Woodstock, Cape Town, Wolfe Barnett established his own business, SA Metal and Machinery

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Company. This business purchased old machines and broke them up, reselling the spares for repairs and parts. At this time, scrap metal was a by-product for the company and was packed up and sent to the UK on steam ships.

The next two decades were hard for the business following the onset of World War Two and scrap metal was more difficult to come by during the war effort. But, when the war ended, relative calm returned to the market and machine parts were much more widely available. This drove the company hard into the scrap metal space. In 1946, the second generation took the reins as Aubrey Barnett joined and, the following year, a new scrap metal crane was introduced to the Woodstock yard.

As the company grew, more volumes began to move through the yard and so new machinery was required. A hydraulic bailing press and a hydraulic scrap handling machine were acquired from Germany and the UK respectively.

1970S By the 70s, the company was wellestablished and well-recognised in the industry. New avenues for growth were being explored and Waste Control, a business which removes waste rubble from home construction sites had been established a few years earlier.

New hydraulic shearing machines were installed at the yard and, in 1978, an iconic World War II Spitfire jet was restored and mounted at the SA Metal site in Salt River. It went on to become the symbol of the company for many years before being removed following deterioration and vandalism.

In 1980, after six decades in business, the third generation joined the business with Graham Barnett adding to the family organisation. The following decade was major for SA Metal, seeing the first bulk vessel leave from the Port of Cape Town, and then opening a new main site to the East of the city, in Epping Industria.

In 1991, further capital investment

INDUSTRY FOCUS: MANUFACTURING

was made when a shredder is installed, towering above the yard in Epping. SA Metal also made property investments, acquiring land around its Epping yard and expanding to become what is today the largest scrap metal processing plant in South Africa. More vehicles were purchased and more divisions opened as the company’s reach continues to expand. This is highlighted by the opening of a site in Johannesburg and the opening of SA Steelworks in Cape Town in 1999.

CHANGING BUSINESS The new millennium saw SA Metal rebranded as the SA Metal Group, incorporating all sub-divisions, across all major regions of South Africa.

New sites followed in Cape Town, Johannesburg and Pretoria, investment into new equipment continued and SA Metal Group even started producing reinforcing steel bar, accredited by SABS, for the construction industry.

In 2012, the fourth generation joined the business, as Daniel and Rafael Barnett took over the Johannesburg operation, becoming one of the oldest continuously family-owned businesses in the country. 2019 marks the 100year anniversary of the business and - through all the highs and lows, and

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socio-economic changes in South Africa – SA Metal Group has been a single constant supplying jobs, earning export revenue, and recycling waste products that might otherwise be discarded.

The company collects scrap from a variety of sources. Individuals can visit SA Metal yards with small pieces of scrap and exchange for cash, the company places waste skips at larger businesses and collects them when full, and SA Metal can also carry out complete dismantle and removal of old warehouses or factories, taking apart all metal products, sorting waste and identifying useful materials.

In Africa, scrap is big business.

Globally, with a growing focus on recycling and reusing to lessen human impact on the environment, companies are keen to ensure that only the smallest volume of excess is allowed to go unused.

Steel is the world’s most recycle material and is popular because it can be recycled multiple times without losing quality.

Producing materials from recycled steel is also less energy intensive than raw, new steel. Recycling scrap metal is extremely important for the environment and helps to stop the exposure of other harmful materials to natural settings. Car bodies, for example, can leak toxic chemicals into the wider eco system if not disposed of

// IN ALL OUR DEALINGS, WE STRIVE FOR THE HIGHEST STANDARDS OF SERVICE, INTEGRITY, COST-EFFECTIVENESS AND CONCERN FOR THE ENVIRONMENT IN ORDER TO BUILD LIFELONG RELATIONSHIPS WITH OUR SUPPLIERS AND OUR CUSTOMERS // correctly. South Africa exports more than R10 million worth of scrap and uses little for local production. The Metal Recyclers Association of South Africa is keen for this to change and for the country to retain scrap for smelting and use in local manufacturing.

In June, Trade and Industry Minister Ebrahim Patel said that the department would launch a programme aimed at assisting

SA METAL GROUP

Four generations of commitment 100 years

of excellence

At Standard Bank we believe in being more than just a service provider.

We recognise that long-term success requires vision and commitment.

The same kind of vision and commitment that has defined our 25-year journey with the SA Metal Group on our path to shared growth.

Standard Bank is proud to celebrate with their partner, SA Metal, on their 100-year anniversary.

Corporate and Investment Banking Authorised financial services and registered credit provider (NCRCP15). The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06).

Moving Forward is a trademark of The Standard Bank of South Africa Limited. SBSA GMS-10816 08/19

metal producers and metal plant and equipment fabricators. Scrap is a major feedstock for the country’s foundries and mills and exporting less could, potentially, be beneficial for the industry.

“We’ll meet investors and stakeholders on the long-term development of foundries and steel mini-mills, including measures to enable the local beneficiation of scrap metal,” said Patel.

INTEGRATED GROUP SA Metal Group is now much more than a simple collector of scrap metal. It is an integrated material processing business which manufactures vital construction materials and recycles materials that would otherwise be headed for landfill.

Steel billets and rebar, copper busbars and brass bars, steel plates, razor wire,

roof sheeting, and a range of other materials can be produced, and the company’s extensive range of specialist machinery means that production is streamlined and economical.

For 100 years, SA Metal Group has established itself as a cornerstone of the country’s metal industry and, through its reach which now extends across southern Africa, the company continues to accelerate the growth of other companies and drive economic activity. How could Wolfe Barnett have ever known the impact his actions in 1919 would have had a century on.

“SA Metal Group strives to provide the best markets to our suppliers of scrap metals, to supply quality-controlled processed scrap metals, the highest quality steel and non-ferrous products manufactured from recycled scrap metals, the safest and most innovative demolition

services and the most efficient waste removal solutions,” confirms the company.

“In all our dealings, we strive for the highest standards of service, integrity, cost-effectiveness and concern for the environment in order to build lifelong relationships with our suppliers and our customers,” SA Metal Group adds.

With 100 years of successful business now behind it, the family-run SA Metal Group is now looking forward as the marketplace continue to change, and the management is preparing to ensure the Group continues to lead the way and set the standards. With a sustainable and quality-drive approach to business, who would bet against SA Metal Group going for another century?

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