{"id":145601,"date":"2019-09-13T08:53:20","date_gmt":"2019-09-13T06:53:20","guid":{"rendered":"http:\/\/www.myza.co.za\/avk-southern-africa-set-to-increase-local-and-international-footprints\/"},"modified":"2019-09-13T08:53:20","modified_gmt":"2019-09-13T06:53:20","slug":"avk-southern-africa-set-to-increase-local-and-international-footprints","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/avk-southern-africa-set-to-increase-local-and-international-footprints\/","title":{"rendered":"AVK Southern Africa set to increase local and international footprints"},"content":{"rendered":"

AVK Southern Africa set to increase local and international footprints<\/a>: <\/p>\n

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An AVK supervisor takes stock of valves for distribution. Establishing distribution channels into Africa has allowed AVK to focus on the entire SADC region and not only set markets in East and Central Africa<\/figcaption><\/figure>\n

Finding new local and international business opportunities following a technical recession, restructuring the business and creating a single brand is no mean feat. Patrick Jantjies, Managing Director of AVK Southern Africa is open about the company\u2019s journey since his appointment, the challenges faced, advantages gained and plans to develop it into an internationally renowned supplier of high quality valves for the water, power generation and industrial sectors.<\/p>\n

Beginning with AVK in 2004 to manage its new export division, Jantjies grew export turnover from a 0 base to close to R20 million annually. In 2009 he began his role as a non-executive member of AVK Southern Africa\u2019s board and, in 2011, was appointed Group MD of AVK Southern Africa.<\/p>\n

2013 saw instrumental changes in AVK\u2019s and Jantjies\u2019 growth trajectories. The company began negotiations to purchase Premier Valves and Jantjies purchased a 3% stake in AVK. When the acquisition of Premier was concluded in 2014, it included black economic empowerment company Zenzele Valves. Jantjies bought the majority share in Zenzele, now AVK\u2019s official transformation partner, and has grown it into a functional valve production company within the AVK stable.<\/p>\n

Capacity expansion
It was at this time that AVK Manufacturing was developed and AVK\u2019s brownfield production facilities (Premier Valves and Cementation Engineering) expanded. The three companies under one umbrella made it possible to manufacture high pressure, large diameter valves, previously imported from AVK\u2019s other companies.<\/p>\n

The purchase of Premier Valves had brought with it an existing high value Rand Water contract. \u201cWe saw this as a fantastic opportunity to establish our specialised engineering position in South Africa,\u201d Jantjies enthuses. Through Zenzele valves, a successful business opportunity from Eskom followed in 2015, which saw AVK servicing a contract with the power provider until June 2018.<\/p>\n

These deals, and others, resulted in fruitful years for AVK. In 2016, however, the markets changed. AVK lost market share in Africa, which was exacerbated by the 2018 South African recession. \u201cThe impact was tremendous,\u201d says Jantjies. \u201cWater boards were forced to reduce expenditure, as was the mining industry, which significantly reduced our turnover from those sectors.\u201d To meet industry economic demands, AVK restructured and streamlined expenses in order to continue to deliver and remain profitable. At the beginning of the second quarter 2018, the decision to consolidate all companies under the AVK brand was made.<\/p>\n

Driving empowerment
As a part of its continuous skills development drive, in conjunction with business expansion, AVK instituted several BEE solutions. They ensured compliance with the Supply Development and Localisation Policy specified in Public Finance Management Act; implemented a purchasing policy so its production materials are now purchased only from 100% black- and women-owned companies; established an incubator group of local BEE distributors; instituted a pricing strategy that government recognises as contributions to black empowerment; and established The Academy.<\/p>\n

The Academy is an AVK head office training facility and part of the company\u2019s contribution to upskilling the sector.<\/p>\n

\u201cOur investments into the valve industry and local lost-foam casting facilities are recognised by government as an investment into the SA economy, and into black economic empowerment,\u201d Jantjies explains. He adds that all initiatives are proving fruitful and that the company is on track to reclaim a large proportion of industry turnover.<\/p>\n

External markets
Establishing distribution channels into Africa positioned the company to focus on the entire SADC region and further north, whereas it previously focused on set markets in East and Central Africa. \u201cWe plan to have operating business models in SADC countries, which will allow us to adhere to local manufacturing requirements that are pertinent in some of those countries,\u201d Jantjies says. \u201cThis will facilitate us acquiring more business in the region.\u201d<\/p>\n

Looking abroad, October this year will see the implementation of plans to enter the Asia Pacific market. The company\u2019s footprint in Australia is growing via a dedicated importer, who will aid with distribution throughout the Asia-Pacific region, complementing distribution via the AVK Network. Moving even further afield, AVK has its sights set on South America and the Middle East. \u201cWe feel many of those countries are similar to South Africa with regards to infrastructure, which may provide us with a business edge,\u201d Jantjies explains.<\/p>\n

\u201cBy minimising our risk in the domestic market and growing our local and international footprints, we have set a growth trajectory beneficial for all involved,\u201d Jantjies concludes.<\/p>\n

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