AN EFFICIENT LEVEL 2 B-BBEE FABRICATOR
Efficient Engineering has been awarded a Level 2 Broad Based Black Economic Empowerment (B-BBEE) rating in terms of the newly revised DTI Codes of Good Practice on Black Economic Empowerment – a remarkable jump from the company’s previous Level 4 rating – in April 2015, according to the old codes.
The specialised engineering company has taken further steps to increase the effective black ownership of the company with the imminent announcement of its black ownership increasing to 56%, with an aim to achieve 25% black female ownership.
The company’s Managing Director, Graham Hartley, says he is delighted with this achievement, considering that in less than six years, the company has grown from a family business to being the preferred supplier of numerous blue chip original equipment manufacturers in the local and international mining, material handling and engineering industries.”
“The reviewed assessment comes at a time when it is becoming increasingly essential for companies involved in the steel industry to achieve a good BEE rating to meet the stricter requirements of its customers and government, and ultimately to qualify for more work in a tough market. We see BEE as value enhancing and an opportunity not a barrier”, says Brendon Davies, the Financial Director at Efficient Engineering.
Davies attributes the improvement to a number of factors including a commitment to the apprenticeship programme; the appointment of more senior management who are from historically disadvantaged backgrounds; and the appointment of a designated BEE consultant, who was central to driving the company’s commitment towards transformation targets and coordinating an investment of R3 million in staff training and development in 2015.
“There has also been a 25% improvement in the BEE representation of senior management compared with this time last year,” says Davies, “and we are also very excited to announce that our board of directors have approved a transaction that will soon see Shalamuka Capital, our BEE partner, taking a controlling stake of more than 51% of the company,” says Davies.
Last year Efficient Engineering initiated an apprentice programme with 35 trade apprentices. “Currently we have trade apprentices representing 15% of our total factory workforce, 75% of whom are black and include black female apprentices, who are in short supply in the steel industry. Hartley says: “We are aware of the need for a shift in perception with respect to gender, race and economic barriers, and we aim to provide as many opportunities as possible for women from economically disadvantaged backgrounds. Currently, there is a 94% increase in female candidates, of which half them originate from rural areas.”
The program has been developed to train and skill people from previously disadvantaged communities, as well as create jobs for them within the industry and Efficient itself. Hartley says: “Our policy is to allow those who are interested in engineering technical skills to come in and shadow some of the best technicians and experts in the world in order to see if this is the right career path for them to follow,” says Hartley.
Efficient Engineering offers National Qualification Framework (NQF) aligned training, which provides graduates from the programme with recognised national accreditation. “Our standards are exceptionally high,” says Hartley. “With the quality of work that our customers have become accustomed to from our various workshops, it is imperative that we maintain the utmost levels of expertise on a consistent basis,” says Hartley.
“This year, we are proud to have offered four of our apprentices permanent employment,” says Davies. “These recently vacated apprentice positions will now be filled with new applicants; preferably black women.
Efficient Engineering purchased Trotech Engineering in 2015, a move that has increased growth for the business significantly. Now operating as Efficient Trotech, this B-BBEE company was formed in 1993 to serve the pulp and paper industries, and has grown to specialise in design, drawing, procurement, manufacturing, erection and installing of bulk storage tanks for the oil and
gas, metal and mining industries. “Its field expertise, sophisticated automated welding equipment and unique methodology in commissioning large storage vessels on site, makes it the partner of choice for industries requiring large scale tanks and its adds significantly to Efficient’s overall diversified offering,” says Vees Moodley, Efficient Group’s Business Development Director, and the former Managing Director of Trotech Engineering. Graham Hartley says: “The acquisition of Trotech complements Efficient’s existing interest in the petrochemical, oil and gas industries. Through consistent strong leadership and the exceptional high standards of service for which Efficient is known, it is expected that Efficient Trotech will contribute between R250-million and R300- million to the group’s annual turnover.”
Maintaining its position as preferred supplier is key to Efficient’s strategy. South American engineering solutions company, DT HiLoad, selected Efficient Engineering as its approved local manufacturer for its highly durable, lightweight truck bodies. These DT bodies have been designed to fit Komatsu, Caterpillar and Hitachi trucks and are a proven cost-effective solution for the opencast mining firms. Efficient is the only company worldwide that has been selected to build DT bodies outside of DT HiLoad’s own operation in Chile.