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South Africa´s Gunric Valves and Britain´s Capital Valves Ltd form a leak-proof partnership
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August 13, 2008 - CBI
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From Johannesburg to the UK
and from the UK to the world
Gunric Valve Manufacturing (Pty) Ltd was virtually unknown on international markets when in 2003 the South African company was invited by the CBI to join its Export Coaching Programme for Pipes and Process Equipment. Within a year, the firm was pumping out exports to a wide range of destinations in and out of Europe. A large share of its exports are sold through Gunric´s agent in the United Kingdom, Capital Valves.
Since its founding in 1989, Gunric Valves has been at the forefront of triple eccentric butterfly valve design. Today, its high quality valves are used in the water, oil, process, mining, power generation, petrochemical, gas, sugar and steel refinery industries worldwide. Participating in the CBI´s Export Coaching Programme gave Gunric the boost it needed to get to where it is today. The programme´s Expro seminar in 2004 proved “invaluable” in assisting the company to complete its Export Marketing Plan, says marketing director Mark Wilson. In addition to training and on-site technical assistance, the CBI also supported Gunric in exhibiting at three major trade fairs for their sector: Aquatech in Amsterdam (2005), Achema in Frankfurt (2006) and Valve World in Maastricht (2006). “The programme enabled us to measure ourselves against European manufacturers as well as against other manufacturers from developing countries”, says Wilson. “The CBI assisted us in formulating our plan as to which markets would be attractive for us and this was backed up by the interest shown at the three exhibitions we attended. Also, they helped us see the importance of the visual presentation of our products.” As a result, Gunric´s exports have grown enormously since 2004 and now comprise over 50% of turnover.
Capital Valves
Gunric has enjoyed particular success through its UK agent. Capital Valves, the largest independently owned valve distribution company in the UK and one of the largest in Northern Europe with a turnover of £36 million in 2007, has secured orders for Gunric’s products in the Middle East, Kazakhstan and North Africa. With plants in London and Cambridge, Capital Valve’s own product base has historically consisted of a wide variety of specialised industrial valves. The firm first visited the South African manufacturer in 2003. Their relationship evolved quickly. “We were looking for a manufacturer of more advanced valve types and styles”, says director Graham Chandler. “This included the triple offset butterfly valve, which I believed had great potential among the valves being produced around the world. South Africa offered a lower base cost manufacturing area and provided an already established price advantage over the market leaders in Italy.”
Capital was soon able to win a major $ 1.4 million project for Tengizchevroil, a Chevron joint venture in Kazakhstan, beating major rivals from the UK and Italy. Further success followed with contracts for Sabic Yanbu in Saudi Arabia worth $2 million. Six months of concentrated engineering led to another joint victory over global competition with the Saudis´ prestigious Sabic Yanbu project.
The secret of success
“Our success”, says Mark Wilson, “is due to a combination of pricing, quality, delivery lead times. But most important is the relationship between our two companies. We interact well in that both companies are similar in size, with similar business styles. In short, we gel exceptionally well. The relationship is symbiotic with the wellbeing of both companies intertwined.”
Chandler agrees. “The relationship is based upon trust and is a definite win-win scenario for all concerned. Our success has been forged through competitiveness, sound quality and providing a product which does what it is supposed to: it does not leak.”
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More information on:
http://www.cbi.eu/?pag=71&story=16
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Address
Beursplein 37
3011 AA ROTTERDAM
Netherlands
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Phone
+31 10 201 3423
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Fax
+31 10 411 4081
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Type of company
Other
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