COMPANY PROFILE
2014
Steval Engineering
+27 13 758 1015 | www.steval.co.za
company profile
Turning customer dreams into reality Editorial: Colin Chinery Production: Chris Bolderstone
South African EPC and SMPP contractor Steval are punching well above SME rank, driven by an inclusive corporate culture, and an outstanding brand reputation. Moving into new geographic markets, CEO, Paul Deppe says his company is now poised to capitalise on the continent’s potentially glittering energy, oil and gas future.
Africa’s energy industry could boom in the coming years with Mozambique and Tanzania set to emerge as new frontiers. Six of last year’s top 10 global discoveries were made in Africa, with more than 500 companies now exploring across the continent. Large gas finds in Mozambique and Tanzania would make the world take note of east Africa as an emerging player in the global industry according to a new report by PriceWaterhouseCoopers – “if they can attract muchneeded investment.” With operations in South Africa, Mozambique and Ghana and growth ambitions across Sub-Saharan Africa, South African EPC and SMPP contractor Steval is one business poised to ride the crest. “Right now in sub-Sahara Africa there are lots of opportunities in energy, oil and gas. Over the next few years we see these two markets as being quite dominant in our strategy” says Steval’s CEO, Paul Deppe. Based outside Nelspruit in Mpumalanga province 200 miles east of Johannesburg, Steval, with a 8150 sq metre
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workshop in Rocky Drift, Mpumalanga and a 2500 sq metre workshop in Beira, Mozambique, specialises in the fabrication and erection of structural steel, plate work, steel bulk storage tanks, process piping, mechanical and electrical installations.
VISION INTO REALITY “We don’t merely construct structural steel, we work with our clients to turn their visionary projects into reality.” Current projects include a bulk storage fuel terminal in Mozambique (which includes the first LPG spheres erected in Mozambique), a turnkey project involving tanks, piping, separators, pumps, truck loading and offloading stations, firewater, structural steel and civil works; a similar project in the DRC and various structural steel projects at the Medupi and Kusile power stations in South Africa. Formed in 1997 with initial steel and maintenance work in the region’s prominent sugar, paper and pulp industries, Steval then diversified, expanding to meet the growing demand for its services in other major sectors in mining,
Steval Engineering
petrochemical, energy, oil and gas. Energy, petrochemical, and oil and gas are leading markets, and as an industry front-runner with a reputation for top quality service and delivery, the company has formed close relationships with Mitsubishi Hitachi Power SA, Alstom, Eskom, Glencore and Puma Energy among top brand clients. Oil and Gas is a major sector, with Steval having recently completed building and commissioning the first LPG spheres in Mozambique. “The three biggest market opportunities at the moment are oil and gas, energy, and mining. As these industries pick up or new projects come on stream, we will increase our focus on those markets. “Steval is a company that has grown from the demand of its customers and by looking at new opportunities across markets,” says Deppe. “As a medium-sized business I think we can say we are unique. This company has always had a strong entrepreneurial spirit, and while the very big guys are all over, I’m unaware of another South African manufacturer
or construction company of our size that is specifically focusing on oil and gas. So we are in an exclusive space here.”
FOCUS ON ENERGY For the next period of time Steval will also be focusing heavily on energy in South Africa, says Deppe, expanding its base on the Medupi and Kusile power stations. Medupi in Limpopo province is the first power station to be built in South Africa for 20 years and scheduled to link up with the grid on December 24, while Kusile in Mpumalanga is expected to become the world’s largest coal-fired power plant. It is the first South African power facility to incorporate wet flue gas desulphurisation (FGD) technology, and the second coal-fired power facility being built by Eskom. When completed – the finish date is 2018 - Kusile will generate 4,800MW of power when fully operational. “Work on these two power stations will be around right up to late 2018-2020, so we are talking about the next five to six years. A number of smaller IPP power stations will
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company profile
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Steval Engineering also be developed and we are working on estimates for international customers right now. “The other part of our strategy is the oil and gas market, and currently we are looking at the East coast of Africa – Mozambique, Tanzania, and Kenya. We have submitted a number of tenders recently in Mozambique and are hoping to secure some of them in the next few months. “We are proud of our reputation. We have made a name for ourselves with the execution of our projects. Mitsubishi Hitachi Power SA for example tell me that Steval is one of their best contractors on site. And the reason for this I think is that we have great pride in our execution. “So we want people who are motivated, possess the necessary skills, who take pride in their work and in the Steval name and heritage. They should also have entrepreneurial flair because this is at the heart of the company.” With a staff of 800, Steval’s operation is built around a strong corporate culture in which personal initiative, shared responsibilities, accountability and pride in performance and client satisfaction are encouraged and celebrated. “Having a workforce where every employee is proud of what they do, and deliver the very best results in each and every project is a key factor in our success. “We treat the business as our own, work hard, yet
keep it fun. And this very special outlook has created an environment conducive to success and is reflected both in the growth of Steval and the reputation it has built for itself. “Over the last few years Steval has been on a very steep growth trajectory and the shareholders expect this to continue. To achieve this, systems and controls will need to be put in place while retaining that entrepreneurial spirit and pride that has always been part of the Steval culture.”
INCREASING AFRICAN FOOTPRINT Steval has East Africa in focus, but what of Angola, Nigeria, Namibia, and even beyond Africa? “Our footprint is pretty much the whole of sub-Sahara Africa. If there are opportunities further afield in Africa we will take them. Earlier this year for example we set up a business in Ghana. We also have a company registered in Zambia “Mozambique has recently had huge gas finds in the north eastern corner and we are hoping to be involved in that market. We will consider opportunities anywhere in Africa. As our clients move into new markets we follow them. “Looking a little further ahead, going outside Africa is certainly a possibility. But right now we see so much opportunity in Africa, - and it’s here we want to consolidate our footprint.”
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