EMVAfrica, a notable player in the stainless steel, special alloys and valves sector, is navigating a turbulent year marked by economic uncertainty, currency fluctuations, and logistical challenges. Amidst a slowdown in project awards and supply chain disruptions, EMVAfrica has strategically
diversified its product offerings and bolstered its inventory to meet evolving market demands.
The state of play
ENERGYMetals & Multi Alloys Business Unit Manager Clinton Lautenberg says the stainless steel industry has faced numerous challenges in the first half of this year and highlights several key issues. He comments “The uncertainty over the elections led to a lot of Capex being shelved by
the big users of the product. We’ve also had to deal with fluctuations in currency and logistics issues at the ports.”
He adds that these factors have contributed to a slowdown in project awards, with many initiatives being put on hold. “The number of projects awarded was minimal. There was a lot of quoting and feasibility studies happening, but not much else. This uncertainty has particularly impacted sectors like refineries and mining, which are major consumers of our products.”
Overall EMVAfrica’s business is split into three divisions: ENERGYMetals, ENERGYValves and Multi Alloys. While markets overlap significantly, the valve side tends to experience more frequent project work than the other divisions. ENERGYValves Business Unit Manager Anesh Prithilall says; “The valves are replaced more frequently than actual pipelines,” highlighting the nuanced demand patterns within the company’s operations.
Strategic initiatives and adaptations
Despite these challenges, EMVAfrica has taken proactive steps to mitigate their impact and has expanded its product range and increased stockholding to ensure availability and meet market demands. “We’ve added supplementary products to our range to go after more niche markets. We’re well established in our core products, but diversification is key,” Lautenberg explains.
A major initiative has been the integration of new instrumentation products and an expanded range of valves, including both manual and actuating options. This leadership position is reinforced by EMVAfrica’s commitment to maintaining a diverse and robust inventory, ensuring that it can meet the specific needs of its customers promptly. This expansion aims to provide a more comprehensive solution for clients, reducing their need to source products from multiple suppliers.
Digital integration
EMVAfrica has also committed to technological innovation, evident in its fully integrated procurement model. This system links its CRM, invoicing, and logistics operations, providing real-time updates and ensuring seamless operations. “Our system is fully integrated, so every night the various components ‘talk to each other’ and update automatically. This integration allows us to provide accurate and timely information to our clients,” explains Prithilall.
Advanced buying software also generates weekly reports to guide purchasing decisions. This ensures that stock levels are maintained, and products are available when needed, despite the logistical challenges.
In addition, logistics are supported by a sophisticated tracking system provided by their freight forwarding company. This system allows for the monitoring of shipments in real-time, providing customers with up-todate information about their orders. “Our freight forwarding company has a new system where you can literally track your order to an hour ago,” says Lautenberg.
Getting to grips with logistics
Logistics remain a critical challenge particularly with container vessel availability and port congestion. However, EMVAfrica has implemented innovative solutions to mitigate these issues including diversifying its supply sources, not relying solely on China. It now buys from India, Korea, the
States, and Europe to ensure it can meet clients’ needs.
This diversification strategy has proven effective in the maintenance of supply continuity and manage costs. Shipping costs from China have skyrocketed, but the diversified procurement approach has helped manage these fluctuations better. EMVAfrica has also benefited from improved conditions at the Durban port, where waiting times have been significantly reduced. Durban’s Pier 2 waiting period has dropped from 28 days to 9 days in the last three months.
Success stories
This strategic approach is also exemplified in several key projects. A notable example is the turnkey supply for a Zinc Mine in the Northen Cape. Prithilall explains the company supplied the first phase two years ago and is now busy with the second phase. This project involved a full turnkey
solution, including independent inspections and compliance with stringent specifications.
Another significant project involved supplying materials for a nuclear plant water treatment facility in the UK. Despite facing delays and logistical challenges, EMVAfrica successfully delivered the required materials, demonstrating its capability to handle complex international projects. This project required the supply of materials conforming to strict nuclear standards, and the company’s extensive network of suppliers and commitment to quality ensured that all specifications were met.
Proactive problem solving
A key element of EMVAfrica’s strategy is its proactive approach to problem-solving and strong relationships with clients. It tries to be proactive rather than reactive, anticipating client needs and providing solutions before issues arise. The ability to offer a wide range of products from stock has also been a critical factor. Increased stockholding and the addition of new grades ,alloys and valve solutions ensure that EMVAfrica has what the market demands, positioning it as a reliable partner, capable of delivering under tight deadlines.
This strategy is also built on strong partnerships with suppliers and logistics providers. This is underpinned by the view that its suppliers are as important as its customers. This has seen the creation of long-term relationships with suppliers around the world to ensure a steady supply of
high-quality materials. An example of this, is the relationship with its freight forwarding company that handles all air freight, sea freight, and courier services. This partnership has been in place for over 30 years and is crucial for operations.
EMVAfrica’s global reach is further enhanced by participation in international trade fairs and exhibitions. EMVAfrica is constantly looking to add to its portfolio and plans to visit Germany next year to explore new suppliers and expand its product range. Future outlook and strategic goals Looking ahead, EMVAfrica remains optimistic about its role in the South African stainless steel sector. There is confidence in the country’s potential, particularly in mining, which is seen as a key growth area. Foreign investment is expected to return, and the company is well-positioned to capitalize on that.
It is also focused on exploring new markets and diversifying its product range further. This ongoing expansion is supported by a commitment to maintaining high standards of quality and service. The ultimate goal is to be more than a supplier - a solution provider, committed to providing clients with the best possible products and services, and confident in meeting future challenges.