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Fluid power merger bearing fruits

Home Metals Fluid power merger bearing fruits

MACSTEEL’s June 2020 merger of two of its business units – Fluid Control and Pipes, Fitting and Flanges – into Macsteel Fluid Control is paying off with the new unit having achieved the forecast growth it set out to achieve.

That’s according to Rowan Blomquist, CEO of the new entity, who said the merger required an extensive change management programme that was not without its challenges but had yielded great success.

“We understand that change is necessary and provides a great opportunity to generate new value, unlock new prospects and drive new growth to deliver new efficiencies,” he said.

“The current economic climate dictates the necessity for business reform in order to remain competitive. To retain our competitive edge, we are regularly evaluating how our business creates value and sustains growth and in doing so are continuously pursuing reinvention.”

Blomquist said the merger was built purely on the synergies between the valve and piping businesses.  “The valve business has always been Macsteel Fluid Control since 2007 while the piping business formed part of the greater steel business. We understand the necessity for change in business and why it’s important to our company, consequent to close scrutiny we realised that in order to remain competitive, sustainable and relevant we needed to evolve.”

He acknowledged that prior to the merger the businesses were less effective in working across the divisions. “However, this has been strategically remedied through the amalgamation of the two business units.  With the new integration the business can continue to supply products manufactured within each business unit but now under one roof.”

Macsteel Fluid Control currently holds 11 international licensing agreements with 11 different suppliers as well as a number of informal agreements. Thanks to excellent relationships with these international principals, Macsteel carries the rights to represent their products in the African market.

A good example is the partnership that started in 2018 between LNT India and Macsteel Fluid Control.   Based in India, LNT India is also a leader in fluid control solutions drawing on the extensive experience and heritage spanning six decades to deliver bespoke valve solutions to the oil and gas, power, petrochemicals and chemical industries.

Macsteel Fluid Control acquired the exclusive rights for sub-Saharan Africa and currently carries the largest stockholding of approved gate, globe and check valves in Southern Africa.

Macsteel Fluid Control’s investment in stock, pressure testing and positive material identification (PMI) equipment enables the business to assist clients in all sectors, but specifically the oil and gas industry.

Macsteel Fluid Control has two mainstays:  Amri Butterfly Valves and Bermad Hydraulic Control Valves, both of whom have been part of the Macsteel group for about 30 years and contribute a large portion of business.  An area ripe for growth opportunity are the number of smaller agencies under the Fluid Control banner, however they are more technical and have more niche product offerings.

Macsteel Fluid Control Business Development Specialist, Carol Lloyd said the merger united “the strengths of both teams, bringing efficiency and as well as numerous other benefits to our valued customers. Being a strategically focused business unit ensures that the right resources are assigned to the requirements of the Macsteel Fluid Control supply chain nationally”.

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