[miningmx.com] — AltX-listed steel products stockist, processor, trader and exporter BSI Steel (BSS) has expanded its R110m distribution and processing centre in Meyerton, Gauteng, by enlarging its warehousing capacity by a further 6 000 square metres at a cost of R12m.
Phase two will see a further injection of R11m – which will add an additional 5 000 square metres, the company said on Wednesday. Phase two is expected to be completed by the end of October and will extend the facility to almost 30 000 square metres.
CEO Grant MacKenzie said the company had also added a new cut-to-length line facility, which will add 6 000 tonnes of coil processing capacity.
“Even while the steel price has been under severe pressure during the past year we have still managed to pursue a number of Capex projects, one of which has been the extension of our distribution and processing centre – a vital move for the group,” he said.
The distribution and processing centre is aimed at consolidating the
group’s processing and trading activities serving Gauteng – and its overland African exports.
“Despite margins being placed under pressure, management viewed this as a vitally important project and we are looking forward to its ultimate completion at the end of October,” said MacKenzie.
The facility is situated on a 23 hectare site owned by BSI Steel.
“Efficiency levels, especially under tight trading conditions, are of vital importance in our industry and continuing with a spread of locations throughout Gauteng became unmanageable. Hence our plan to consolidate into one centre, a move which has boosted our efficiency levels significantly and helped us to keep our tonnage levels up during very trying trading conditions – where steel companies are being hard-hit across the board.
“Certainly, when the market improves – and it will – as steel prices stabilise and even increase, we will be ready to better reap the benefits.”
BSI Steel’s primary product range is made up of mild (carbon) steel in all its different forms. The company’s strength lies in its diverse product range and its differing trading styles, said Mackenzie.
Not only does the company boast established branches in Southern Africa, but it also trades in other markets where it does not have an established branch network.
The company currently has branches, or offices, in Pietermaritzburg, Zambia, the DRC, Zimbabwe, Mozambique and Mauritius. In addition to being active in these countries, the company has established relationships with clients in countries that include Namibia, Malawi, Botswana, Tanzania and Kenya.
