Citing economic and currency stability, a new respect for Chinese product within the hydraulic hose industry, improved research and development (R&D) facilities and a strategic re-evaluation of operations, Genflex Hydraulics of Johannesburg report a 41% increase in turnover during the last six months of 2005.
Bruce Garner, managing director of Genflex Hydraulics said: "2005 has been a good year for Genflex, with the company winning two major mine contracts in the last few months in addition to winning contracts in Zambia and Botswana.
"Our product is exceptionally competitive not only in price but also in quality within South and southern Africa. This year has been the year that we have finally established the Genflex brand on our hydraulic hose supplies. We have demanded, and received from China, a better quality outer cover; with sizes and tolerances that are strictly adhered to - and every metre of hose imported has been tested to twice the maximum working pressure. It is also our intention to increase our stockholding during the first six months of 2006 from R8 million to R10 million."
The company will be importing from China during 2006 in the region of R1,5 million worth of hydraulic hose per month for local contracts. Genflex reports that there has been a gradual about-turn within the hydraulic hose industry, with hose consumers viewing Chinese imported product more positively.
"We have also looked inward at how our operations are strategically run, and have made the appropriate changes to ensure our continued growth, Says director, David Michelle. "I believe that this has helped Genflex become more creative in the way we do business. We are also considering identifying a strategic partner over the next 12 months to join us in recognising and assisting us with further operational changes that we feel need to be addressed.
We have invested heavily in R&D, with the installation of our new testing facilities during 2005 and we have also launched the Guiloswage portable hydraulic hose repair machine which will add greatly to what we are able to offer not only the mining industry, but also the construction, mechanical handling, agricultural and general engineering sectors, therefore expanding our business base. We have already sold three machines in the first six weeks of them being made available," said Michelle.
"Our new salesforce has also now bedded down and with the confidence of our R&D services behind them, are able to show to existing and potential clients the strength of the Genflex brand and its products, says Garner. "Genflex was formed some 14 years ago, with a turnover of less than R600 000 per annum. I think our current turnover of more than R50 million per annum is something Genflex and its staff should be proud of."
For more information contact Bruce Garner, Genflex Hydraulics, +27 (0) 11 900 3235, [email protected]
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