DPI Plastics returns to profitability in 2012
PRESS RELEASE
DPI Plastics returns to profitability in 2012
10 December, 2012: DPI Plastics - a leading manufacturer of water reticulation, drainage and pipe-fitting systems in South Africa - has increased revenue substantially during the course of the 2012 financial year, ensuring a return to profitability for the first time in three years.
DPI Plastics forms part of the Dawn Group, which specialises in the manufacture and distribution of quality branded hardware, sanitaryware, plumbing, kitchen, engineering and civil products. An official Dawn financial statement has shown that DPI Plastics substantially increased revenues in the 2012 financial year.
DPI Plastics managing director Gerhard Kotzee attributes this dramatic turnaround to the company's restructuring strategy, in addition to improved conditions in the infrastructural sector of South Africa. "The restructuring strategy was implemented 18 months ago, and involved the introduction of a programme to improve internal efficiencies at all levels of the company."
According to Kotzee, an increase in government tenders issued has played an important role in improving market conditions during the course of 2012. "There has been a distinct rise in government spending this year and, as more tenders continue to be awarded, there is a feeling of stability and optimism among contractors in the market," he continues.
Kotzee points out that the improved market conditions has resulted in a steady rise in sales volumes across the entire DPI Plastics range of PVC-U and PVC-M pipes and PVC-U fittings. What's more, he highlights the fact that the company's range of recently launched Ultralok coupling systems have also been well received by the local civils and mining industries.
"Developed in-house by DPI Plastics, the patented Ultralok PVC-M coupling is an innovative product for the jointing of plain-ended pipes. This innovative product was introduced to the civil and mining industries in the first quarter of 2012 in standard 105 mm and 110 mm sizes, for use in applications of up to 16 bar pressure," he adds.
Kotzee notes that the design mechanism of Ultralok is different to any other product on the market in terms of its robustness and gripping nature. "The clamping mechanism comes with a unique pressure enhancing rubber seal. As the pressure increases, the design of the seal facilitates a distributed type of load on the seal, thereby alleviating the load on the body of the coupling."
DPI Plastics plans to expand its product offering in 2013 to include a comprehensive range of Ultralok sizes that include; 155 mm, 160 mm, 200 mm and 210 mm. "Product innovation is a major aspect of the DPI Plastics business model, and we plan to launch a number of additional new products that add value to our customer base during the course of 2013," he explains.
Although the 2012 financial year has been a big improvement for DPI Plastics, Kotzee admits that labour unrest in South Africa has proven to be a major challenge. "Prolonged strikes across numerous sectors have had a negative impact on investor confidence in South Africa, which in turn has negatively impacted on growth. DPI Plastics has taken a proactive approach towards this trend by investing in training programmes that empower its people, in order to ensure that they are provided with the skills to excel in their positions, while creating potential for future career growth."
Kotzee is optimistic that DPI Plastics can consolidate on its current successes in 2013 and beyond, as South Africa is expected to undergo an infrastructure development boom in the short term future, following plans set out by the Presidential Infrastructure Co-ordinating Commission to develop key strategic infrastructure projects, estimated to be worth more than R4-trillion over a 15 year period.
"The future outlook in South Africa remains positive as government looks set to convert its capital expenditure budgets into a number of large scale projects in the long term. As investment in the African mining sector also looks set to rise, I believe that exports into East and West Africa will continue to play an important role in DPI Plastics' long term growth strategy," he concludes.
Ends
Notes to the Editor
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About DPI Plastics
DPI Plastics (Pty) Ltd is a leading manufacturer of PVC and HDPE water reticulation and drainage pipe and fitting systems with two ISO 9001 certified South African factories based in Johannesburg and Cape Town.
DPI Plastics Contact
Martine Goodchild
DPI Plastics Marketing Manager
Phone: (021) 957 5600
Fax: 086 505 6484
Email: mgoodchild [at] dpiplastics [dot] co [dot] za
Web: www.dpiplastics.co.za
Media Contact
Renay Tandy
NGAGE Public Relations
Phone: (011) 867-7763
Fax: 086 512 3352
Cell: 082 562 5088
Email: renay [at] ngage [dot] co [dot] za
Web: www.ngage.co.za
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