Page 8 - HGR March + April 2019
P. 8
6 NEWSLINE
Van Dyck’s Zarrebini calls
for industry co-operation
South African manufacturers need a “When we took over Van Dyck, they Whereas, initially 80 percent of
change of mindset – one that might were importing their raw materials. production went to its Van Dyck Flooring
even see competitors working together We decided to vertically integrate the factory in Durban, just 60 percent of a
to develop synergies and niche markets, operation as we had experience in much higher output heads that way
says Dr Mehran Zarrebini, chairman extrusion manufacturing and designing today.
of PFE Extrusion which manufactures these products in the UK. We wanted
polypropylene staple fibre and bulk to ensure that we were not reliant At the time of investing, Zarrebini
continuous filament (BCF) yarns in on imports and at risk of currency says the plan was to export fibre and
Hammarsdale KwaZulu-Natal. fluctuations. We wanted to ensure that yarns. Hence, they provided for a
our inventory costs were lower,” he great deal of flexibility and additional
It is this shift that has seen production explains. capacity. However, much has changed.
at PFE Extrusion grow by 25 percent The polymer price – the raw material
during 2018 despite the fact that the The success story is an inspiring sourced locally from Sasol and Safripol
main sectors it supplies - flooring and one. They chose a fairly isolated – increased dramatically and the high
construction – are under severe financial industrial area on the busy Durban price of transporting fibres and yarns
pressure. Pietermaritzburg corridor that had once to Europe and the United States made
been home to a number of large textile product uncompetitive.
In a similar way, Zarrebini adds, PFE mills. When that industry imploded, land
Extrusion has worked closely with both was available at lower prices and existing “Initially, we didn’t focus on developing
existing and potential clients to research infrastructure was well developed. The local our client base. However, as
and develop new applications for their Zarrebini family also had a history of we’ve seen pressure grow in the
products and, in the process, its yarns. investing in the area. flooring market, we have had to look at
alternative industries to grow it. Other
“Working closely with clients to He recalls how a building boom prior carpet manufacturers began to source
develop synergies is going to be the to the 2008 economic crisis meant that their own yarns locally for the very same
future of South African manufacturing. building materials were hard to come reason as Van Dyck – to minimize their
One of the biggest problems is that by and steel prices extremely high. The inventory exposure and ensure less
most manufacturing companies have company discovered a building at a dependency on foreign currency. We
an inside out mentality. You design and disused mine in Bloemfontein and then have also worked with our geo textile
manufacture a product irrespective of relocated and rebuilt it into the present customer base and with certain other
understanding exactly what your client plant in Hammarsdale. niche manufacturers that utilize our fibre
needs and then try to sell it. The most and yarns for products, he says.
feasible approach is to go outside in. They began to employ and train people
We need to look at what a client needs, walking past their new premises. Many The resulting economies of scale have
what kind of problem he has and how are still with the company. Today, PFE increased the plant’s competiveness and
we can produce a product to solve that. Extrusion has a staff of 40 and operates enabled it to look to further production
We need to identify our customers’ pain 24/7. increases. This has also renewed the
points. The manufacturer needs to adapt. future focus on exports, only this time
We need to get on the same level as our It manufactures and markets up to 10 not restricted to carpets.
clients,” he suggests. 000 tons of staple fibre and 2 000 tons
of BCF yarn annually. These are used to “We’ve invested in ensuring that the
When British holding company, PFE manufacture carpets and carpet tiles in plant is more efficient from an energy
International, launched its extrusion its own Van Dyck Floors factory in Durban perspective to drive down unit costs. By
business in 2006, this was not its as well as for making geotextiles which increasing volumes, we are able to reduce
mindset either. Instead, they wanted to are used to prevent soil erosion, filtration our expenditure on electricity. We have
secure the supply chain for the Van Dyck materials, automotive components, spun also minimized waste which is one of the
carpeting operation that was purchased yarn, equestrian footing and concrete biggest negative factors that impacts an
in 2004. applications. operation such as this,” he explains.
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