M - T E C
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WOR LD CLASS M-TEC’S AFRICAN VISION
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M-TEC is a world-class leader in power cable and related manufacturing, powered by a model culture of excellence, innovation and sound values. And major infrastructure development, General Manager Sales and Marketing Hugo Diedericks tells Colin Chinery, is the absolute key to economic growth in South Africa and the rest of the continent.
M-TEC FEATURE
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ereeniging is a pivotal place in South Africa and its history. It stands at the rail and road crossing between two former nations, the Zuid-Afrikaansche Republic and the Republic of the Orange Free State, and the name means joining or uniting. It was here one hundred and eight years ago, that the peace treaty was signed ending the South African War, and today Vereeniging, population 400,000, is one of the most important industrial centres in South Africa. M-Tec is among its leading companies, world-class manufacturer and supplier of power cables, aluminium overhead conductor, bare copper wire and strip products. Current programmes include optic wiring in a project linking East Africa to the submarine cable, and copper wiring participation in a Mozambique – Angola power transmitter.
The one-stop shop M-Tec deals in six different types of cable across a spectrum including aluminium overhead conductor, wire, strip and profiles; copper wire, strip, contact wire and conductor; low-medium and high voltage power cables; optical fibre cables including OPGW; copper telecommunication and data cable.” We are a One-Stop Shop for wire and cable in Southern Africa,” says Hugo Diedericks, General Manager Sales and Marketing. Its origins go back almost a century. M-TEC manufactured South Africa’s first stranded copper wire as far back as 1924 and produced the country’s first aluminum rod in 1955. Today M-Tec’s major shareholder is world leader Taihan Electric Wire Co of Seoul, South Korea. Operational and quality standards are exacting. “We wouldn’t be where we are if this wasn’t the case,” says Diedericks. “We conform to the Taihan standards, which brings a new take on how quality management is done.” M-Tec’s continuing success comes in part from the emphasis on customer satisfaction regardless of a customer’s purchasing stance.
Another factor is a highly competitive and market-driven focus on total quality, a product range of world-class quality, modern production facilities, and a dedicated and total solutions driven workforce. “Quality is everybody’s responsibility and not somebody towards the end of the line. So an operator can stop a line at any point in time if the quality is compromising his section of the work, and this follows through to the predispatch controls. I’d like to think that when it comes to quality in South Africa we are setting a really high standard.” Innovation, creativity, commitment and passion are fundamental core values of M-Tec’s culture. Entrepreneurial flair too, and this says Hugo Diedericks extends to customer relations.
Serve the customer “Our object is to serve not the system but the customer. I believe people do business with people and because they trust one another. That trust is built upon a relationship and that relationship comes from our sales and marketing team partly because they are entrepreneurially driven. “They act in employment as they would if it was their own business. We have a phrase we often use: ‘What would you have done if this was your business?’ Then you know the right answer. You don’t hide behind bureaucracy.” Current innovation is centred on optical fibre, but Hugo Diedericks sees many areas in South Africa where innovation still needs to come. “If you look at the underground power cable for example, the market is still dominated by lead-insulated paper cable – a technology that has essentially died in the rest of the world. “And from an M-Tec perspective we’ve taken a stand to develop XLPE as an alternative, one which has a longer life cycle and with no water penetration. We’ve been spending quite a bit of money on R&D showing the market the benefits of newer technology and at a reduced cost. www.southafricamag.com
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M-TEC FEATURE
I believe Southern Africa is going to see much bigger growth… more than even we imagine in South Africa
“We have a laboratory where we conduct tests on a continuous basis to find that little bit of next competitive advantage. But it’s not a quick solution like writing a programme.”
Excellence and loyalty culture Also embedded into the M-Tec culture are loyalty – staff members have been there for as long as thirty years – and the Can Do spirit. Another important contributor is flat management structure. “Our CEO, June Young, Hah, is very much a hands-on man and brings a big contribution to M-Tec’s culture. He doesn’t sit in an office all day, he’s got his blue cover-alls on walking the floor. He has that common touch and this helps a lot.” The excellence in all things ethic carries over into ethical behaviour in corporate governance. The company invests heavily in local community-based programmes focused chiefly on education, health, improved public services and aimed at reducing crime, community upliftment and social welfare. 4
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Closer to home, M-Tec runs a 24-hour healthcare clinic for its 450 employees.
Empowerment trend setting And M-Tec’s Black Empowerment programme is a trend-setter. “We have the top rating, and people we supply use us because the scorecard also reflects that you are purchasing from Black Empowerment companies. “All this brings more people into the economy and also allows more to become entrepreneurs because - having been given an opportunity - they have skill sets. I think we can say that we are a successful advertisement for Black Empowerment.” But M-Tec, like almost every South African industrialist, grapples with the national skills shortage. “It’s the anomaly of the labour market; a large percentage of unemployed and yet the supply cannot fulfil demand for trained staff. We take that challenge with in-house training, and I don’t think there’s any other way to do it. So, training, training and more training.”
M-TEC FEATURE
China’s growing dominance is very big says Diedericks, “bigger I think than people in England can imagine. The Chinese many years ago identified Africa as (a) a big supplier of raw materials and (b) customer of their finished goods. “As far as I know China is the only country in the world with representation in every single African country including governmental level. And the benefit they are having is landing raw materials whose cheapness boggles our mind. “We would like to see a bigger contribution of African products in African projects. We have to increase our capacity to meet that demand and compete with the Chinese. Since this is the reality of the landscape, perhaps we should have a discussion with Chinese manufacturers and at least find some common ground in terms of quality standards. We are a major player, we have a recognised brand and infrastructure, and we would like a slice of that pie.”
Our object is to serve not the system but the customer With full order books M-Tec’s challenge is to leverage success. ”We are not constrained by the fact that we are in South Africa and we can look at opportunities in southern, central, east and west Africa in collaboration with our Korean partners.”
Facing China’s dominance But Diedericks points to a modern and to many eyes disturbing African phenomenon – the market dominance of China. “The Chinese component is a very big part of infrastructure projects and they import absolutely everything from China. It’s very seldom they would even look to source products in South Africa, Go to any site and the wheelbarrow the guy is pushing was made in China – they won’t even buy the local wheelbarrows!” 6
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South Africa can compete with world’s best South Africa can compete with the best in the world when it comes to high technology products, “and we are well-geared to reap the benefits of the growth that will come to Africa. My view very simply is that growth doesn’t bring infrastructure; infrastructure brings growth. I believe Africa understands that, and I’m referring not only to the roads and railways, but a electricity power generation on which a lot will depend. “Take the whole of Southern Africa, Angola with its oil and diamonds, Zambia with its huge resources including copper, the natural beauty in terms of tourism, and yes I’m a very big Afro optimist. “I believe Southern Africa is going to see much bigger growth in the next 10-20 years, more than even we imagine in South Africa. And this company is ready to get its share of that business.” END
WORLD-CLASS PRODUCTS FOR THE POWER GENERATION INDUSTRY The Scaw Metals Group (Scaw) is an international group, manufacturing a diverse range of steel products. Its principal operations are located in South Africa, South America, Canada and Australia. Smaller operations are in Namibia, Zimbabwe and Zambia. Scaw’s quality products manufactured for the power generation industry include: Wire and Strand Products: • Prestressed wire and strand Haggie® Steel Wire Rope Products: • • • •
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Scaw supplies globally and also offers nationwide distribution in South Africa through its strategically located branches throughout the country.
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Wire Sales Tel: +27 (0)16 980 2224 Fax: +27 (0)16 988 3421 sharonsales@capegate.co.za
Web: www.capegate.co.za
Steel Sales Tel: +27 (0)16 980 2561 Fax: +27 (0)16 980 2467 davsales@capegate.co.za
International Sales Tel: +27 (0)11 483 8500 Fax: +27 (0)11 339 3935 expsales@capegate.co.za
Cape Gate (Pty) Ltd. is a family company, which has always valued its self-reliance. Cape Gate has, through full vertical integration, grown from a small wire netting manufacturing company in 1962 to a major producer of wire and steel products with its own source of raw materials. The company has set new standards and found innovative hi-tech solutions for a broad spectrum of strategic industries, which demand dependability. All our products meet recognised international standards and we are proud to be recognized as a reliable supplier of high quality products. Serving…
•Mining •Agriculture •Industry •Commerce •Civil engineering and construction •Domestic and foreign markets
Cape Gate in proud association with Malesela Taihan Electric Cable www.southafricamag.com
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South Africa Magazine, Suite 9 and 10, The Royal, Bank Plain, Norwich, Norfolk, UK. NR2 4SF TNT Magazine, 14-15 Child’s Place, Earl’s Court, London, UK. SW5 9RX Enquiries Telephone: 0044 (0)1603 343267 Fax: 0044 (0)1603 283602 emailus@southafricamag.com Subscriptions Call: 00441603 283573 subscriptions@southafricamag.com
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Malesela Taihan Electric Cable (Pty) Ltd Steel Rd Peacehaven Vereeniging 1930 Gauteng South Africa Tel: +27 16 450 8200 Email: hugod@m-tec.co.za
www.m-tec.co.za