CONSTRUCTIONissue 01

Inside

also this issue

Rio Tinto’s new HQsquare

WINSTONE WALLBOARDS

BUILTFORM

FLETCHER ALUMINIUM

BUILDING BETTER COMMUNITIES

ABERGELDIE

Construction industry recession to deepen in 2012 Data firm and economic forecaster Experian thinks that the construction industry faces another year of recession in 2012. It has downgraded its predictions for construction output and forecast a contraction of four percent in 2012 following a three percent drop for 2011. In its previous forecast, Experian had said output would be static in 2012. It also revised its figures for growth in 2013 down from five percent to four percent between its winter and summer forecasts.

2012 is set to be another year of surviving, not thriving.

Construction Outlook is an international quality digital and print magazine, which reaches a worldwide readership. We focus solely on construction, with editorial, features and advertising relevant to the industry.

Established in 1974, the Outlook series was originally developed by Consyl Publishing and was purchased by TNT Publishing in 2010. The business now aims to establish an even bigger footprint in the territories where it was once prominent, while conquering new markets.

In this issue we feature leading names in the industry including New Zealand based building materials manufacturer and distributor Fletcher Building, Winstone Wallboards, New Zealand’s sole manufacturer of gypsum wallboards, and we go inside 990 LaTrobe Street, Melbourne Water’s new HQ.

Enjoy the magazine!

Editorial Editor – ian armitageWriters – Colin ChineryJane McCallionrobert Michaels

BusinEssadvertising sales Manager – andy Ellissales – andy Williamsresearch manager – Jon Jaffreyresearchers – Eleanor Watsonsandra ParrMarcus GrahamMarie smiththomas aras

sales administrators –Katherine Ellisdaniel George

aCCountsFinancial controller – suzanne Welsh

ProduCtion & dEsiGnMagazine design – optic JuiceProduction manager–Jon Cookeimages: Gettynews: aaP, saPa

diGital & itHead of digital marketing & development – syed ahmad

tnt PuBlisHinG CEo - Kevin EllisChairman - Ken HurstPublisher - tnt Multimedia limited

tnt Multimedia limited,unit 209, 16 Brune street, london E1 7nJ tntmagazine.com

EnquiriEstelephone: +44 (0) 1603 343367Fax: +44 (0) 1603 283602andy.ellis@tntmultimedia.com

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Welcome

ian armitageEditor

contents

Features

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04Welcome P A C I F I C I N D U S T R I A L

C O M P A N YPIC is over 40 years old and continues to supply key components to major resource projects across Australia

F L E T C H E R A L U M I N I U MA window on the world

I P L E X P I P E L I N E SLeading manufacturer and supplier of plastic pipeline systems

W I N S T O N E W A L L B O A R D SA New Zealand icon

D I M O N DNew Zealand’s largest manufacturer of steel roofi ng

B U I L T F O R MSenior people involved in your project, no matt er how big or small

A B E R G E L D I E C O M P L E X I N F R A S T R U C T U R EMick Boyle established Abergeldie in 1994, its mission to build bett er communities

E - K W I K B U I L DSuch is their quality that e-KwikBuild buildings can last a lifetime

G E R B E R I TA market leader in sanitary technology

C I V I L C O NQ&A with commercial director Dante Zorzi

M O T H E O C O N S T R U C T I O N G R O U PA notable player in the construction industry and an empowerment success story

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Formed in 1969 by Erasmo Mosole, fabrication and

construction specialist Pacifi c Industrial Company continues

to win major contracts 40 years on says his son Marco Mosole, Managing Director.

By Ian Armitage

steel

Western Australian fabrication and construction specialist Pacifi c Industrial Company (PIC) is over

40 years old and continues to supply key components to major resource projects across the region.

Founded in 1969 by Erasmo Mosole, who was later joined by his sons, Marco and Sandro, PIC has supplied many major resource projects over the years, working with clients predominantly involved in the mining, resource and industrial sectors.

“PIC is involved in all aspects of steel fabrication and construction from

stronggoing

5

Pacific industrial comPany

engineered steelwork and equipment for the resource and oil and gas sectors in Australia, and as such, we continue to grow.

“We are on a growth path, responding to the increasing demand for satisfying larger projects and more complex projects as presented by clients. This has required the business to invest more in plant and equipment and in the training of its staff , as well as the introduction of additional staff ,” Mosole adds.

He says there are lots of opportunities for companies like PIC - enormous opportunities in fact. “I say that because of all the new developments to be undertaken in Western Australia. The greatest part that will be in

shop fabricated items through to major construction projects requiring engineering, procurement, fabrication, installation, commissioning and related electrical, instrumentation and civil works,” says Marco Mosole, Managing Director, speaking to Construction Outlook.

According to Mosole, PIC started off in a tiny 500 square metre fabrication facility; today, that facility is over 30,000 square metres – and it is gett ing bigger still.

“Interestingly, we have the original facility, which has been expanded to about 4,500 square metres,” he laughs. “In all seriousness, our primary focus is the fabrication and construction of heavy

6

Pacific industrial comPany

the mining and oil and gas sectors – that’s where the biggest project opportunities are. Our strategy is to pursue and continue to value add, for the more complex projects that are available to us, creating a niche market for opportunities to supply and install the equipment that we fabricate.

“We value add through the process of assisting with engineering, with transportation and installation activities, and secondary subcontract activities as required.

“Projects are becoming larger and more complex so we have to invest in the business to ensure we meet that requirement.

“We are continuing with our growth strategy. We want to increase our capability and capacity in terms of our manufacturing and production; that’ll be done through the incorporation of technology, additional equipment and increased workshop capacity and automation.”

Mosole is very passionate about promoting the capabilities of local manufacturing. “Australian manufacturers have the knowledge, skills and expertise to fabricate and supply products for large projects to a world-class standard. By working in conjunction with each other, companies do not have to look offshore,” he says.

“We are continuing with out growth strategy. We want to increase our capability and capacity in terms of our manufacturing and production”

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Pacific industrial comPany

“In terms of our work, we do everything from basic structural fabrication, such as the frameworks of buildings; we do plate work including chutes and hoppers, tankage, vessels and piping. In essence we are a Structural, Mechanical and Piping (SMP) Contractor.”

The market has changed a lot since the 1970s, and in order to remain competitive PIC has invested in ways to improve its fabrication processes – this will continue.

“Australia has some of the highest paid skilled workers in the world, so in order to increase our capabilities they must fi nd new ways to streamline,” says Mosole. “One way of doing that this through automation.”

PIC gets a lot of work from the mining sector and has placed an emphasis on the oil and gas industry.

It has also done a lot of government infrastructure and heavy commercial work in recent years.

“We’ve done everything from fabricating steel for high rise buildings, shopping centres and structures of that nature to oil and gas and mining. We are involved in all aspects of steel fabrication and construction, and are able to provide clients with services straight through from shop fl oor fabrication items through to construction,” Mosole says.

PIC is currently involved in building City Square, a 47-storey offi ce skyscraper under construction in Perth.

When complete it will be BHP Billiton’s new regional offi ce.

“We’re very proud to be involved,” says Mosole. “We are working with our client, property developer Brookfi eld Multiplex. We’ve had a

longstanding relationship with them and it is great to continue it on this landmark project for Perth.”

It is quite apt that the steel framed 47-storey skyscraper will be home to BHP.

Located at 125 St Georges Terrance, construction started in April 2008, Mosole says, and is expected to be complete in 2012.

The project is estimated to cost around A$700 million.

“What have the challenges been? Well, there have been some challenges in meeting the logistical demands of delivering steelwork in a Just-in-Time basis to the city centre for installation,” Mosole says. “And there have been challenges too in some of the engineering connections that come with high stress joints in a high rise building. But it is nothing we can’t handle.

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“Pacifi c Industrial Company is committ ed to providing quality manufacturing and installation expertise for all clients,” he continues.

“We combine fast, effi cient service and delivery with performance to the most exacting standards.”

Looking to the future, Mosole is confident the company will continue to grow. One stumbling block, however, could be the Federal Government’s carbon tax, which is due to start in July next year, and, say many, will hit businesses like PIC hard.

The tax will increase the cost of doing business, discourage new investment and jeopardise the international competitiveness of fi rms, opponents say.

“We are a 40 year established business; we’re highly respected and reputable in the industry in executing work safely, on-time and within budget for a vast array of clients and have enjoyed repeated work with all of our major customers over many years. I remain confi dent of future success,” Mosole concludes.

“Pacific industrial Company is committed to providing quality manufacturing and installation expertise for all clients. We combine fast, efficient service and delivery with performance to the most exacting standards”

a window

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Fletcher Aluminium designs develops and extrudes aluminium for some of New Zealand’s most trusted window and door brands. Through innovation, quality and

understanding of consumer and market demands, it has become a genuine leader

in its field, as Construction Outlook discovers.

By Jane McCallion

Fletcher Aluminium, part of the Fletcher Building group of companies, designs, develops, fabricates

and extrudes premium aluminium. The organisation is primarily involved in the provision of aluminium for use in the New Zealand windows and doors market and is one of the biggest operators in this area. It also has a division dedicated to commercial facade systems for large-scale projects and a third providing custom aluminium extrusion solutions to all other sectors.

The company supplies windows and doors to both the

a windowon the world

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fletcHer aluminium

building trade and individual homeowners under the brand names Vistalite, Nebulite, Rylock and Fisher Windows & Doors. These brands operate on a franchise basis, as marketing manager Ronnie Pocock explains. “All four of these brands are in fact older than Fletcher Aluminium, which was founded in the mid 90s. Over the past 20 years, we acquired these brands, but we recognised the value they had as individual businesses. So, they continue to operate on a franchise basis, dealing directly with the clients while sourcing their aluminium from us.”

“the franchisee brand is at the coalface of the market. they interact with the architects, builders and homeowners so experience firsthand what their expectations are. in turn they are able to escalate these expectations and market demands to the Fletcher aluminium team who then can address and meet these requirements”

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fletcHer aluminium

All of the design and development takes place in house at Fletcher Aluminium in conjunction with its franchised fabricators. “The franchisee brand is at the coalface of the market. They interact with the architects, builders and homeowners so experience fi rsthand what their expectations are. In turn they are able to escalate these expectations and market demands to the Fletcher Aluminium team who then can address and meet these requirements,” Pocock says.

The windows and doors marketplace is extremely competitive, not least because every house needs them whether it’s a new build, extension or simple replacement. Thus, it is very important to stay ahead in terms of innovation and new technology. “Falling behind technologically is not an option – you always have to keep up on top of the competition,” says Pocock. “We have always considered ourselves to be leaders and innovators in this area, as we were the fi rst to develop a lot of the systems that are now commonly in use in New Zealand.”

In 2003, Fletcher Aluminium developed an innovative solution; the Foldback ® Bifold that is still largely unrivalled by its competition. “Six years ago, we patented a door system that allows the bifold panels to wrap 180º and lie fl at against the cladded wall,” says Pocock. “In the past, we haven’t

always been able to maintain exclusivity, but with this product, as it has been patented, and is original to Fletcher Aluminium it really does set us apart from the competition in New Zealand.”

While sometimes innovation can be a result of product evolution, at others it can be provoked by external forces. In 2010, there was a code change in building regulations, which stated that the thermal performance of all windows and doors had to be more effi cient. In theory, this is very easy to achieve, explains Pocock, as if you use double-glazing you will achieve the thermal effi ciency required. However, if you are producing folding or sliding doors and windows, as Fletcher Aluminium and its franchises do, double-glazing itself presents problems. “Double glazed windows or doors are signifi cantly heavier than their single glazed equivalents,” he says. “So we needed to develop platforms that could carry this new load.” In 2010, Fletcher Aluminium introduced a new bott om-rolling version of their Euroslider®. “We had previously been using a top-rolling mechanism, however, when double glazing became almost mandatory, we moved almost exclusively to bott om-rolling products. This is simply because they are easier to manufacture, more versatile in application and carry nearly twice as much weight; the application of top-rolling, double-glazed doors are still popular when trying to achieve a totally smooth sill.”

Of course, innovation by itself doesn’t drive a company forward – you have to be able to sell it. With this in mind, last year it introduced the use of Salesforce CRM software, which allows the franchisee to monitor sales and clients. “It gives us more transparency on the type of client, product requirements and conversion rates. This means we can both try and assist the franchisees with diff erent sales approaches or change the marketing strategy to suit.” says Pocock.

The franchising system that Fletcher Aluminium has in place presents both opportunities and challenges. In 2000, the four brands were re-organised so that, while they sell under diff erent names, they are eff ectively each selling the same range of products. “In some ways, it may seem

“We will also be looking at how to be more responsive with timing and more attuned with our customers’ needs”

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more logical to bring all brands together under one brand. However, one of the reasons we acquired these brands in the fi rst place and the main reason we keep their names is their successful and long-standing relationships with clients and their long-standing heritage in New Zealand. It does bring its diffi culties though. We are reliant on them to make sales and bring in revenue, as it is they who are meeting clients and closing deals, not us. So we have to make sure that they have access to all the right skills and that they are able to act as an eff ective sales force.”

In the future, the company sees itself continuing to grow and maintain its position as an innovator in the New Zealand windows and doors market. Within fi ve years it hopes to have grown its market share by 15 percent and particularly to

have grown its footprint in the South Island. “One of the things we will be doing is opening up a fabrication plant there, which will be a new business area for us that we haven’t touched at all. The intention is that the franchisees who are on the South Island will keep their normal workload but if there is any overfl ow they can come to our factory and we will make and distribute the additional product,” says Pocock. He also thinks that some growth may come from acquisitions but that, above all, att ention to the basics is the key. “We will also be looking at how to be more responsive with timing and more att uned with our customers’ needs if they need us to delay or bring forward a delivery, for example. These are the things that will drive our growth and increase our success in the future.”

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Iplex Pipelines, a division of Fletcher Building, supplies and distributes pipeline systems and

manufactures pipelines from 15mm to 2000mm in diameter for services including plumbing, water supply,

gas, sewerage, storm water, irrigation, telecommunications, and electricity.

By Ian Armitage

Pipedreams

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iPlex PiPelines

Iplex Pipelines is a leading manufacturer and supplier of plastic pipeline systems. Providing a diverse range of products and services, the company provides systems that enable “the

delivery of world-class solutions to the water infrastructure, irrigation, civil and construction sectors” and operates manufacturing and distribution businesses across all Australian states and New Zealand.

“We manufacture and supply pipelines systems from 15mm to 2000mm in diameter for a wide range of applications including water supply, sewerage, plumbing, gas, storm water, irrigation, telecommunications, electrical, mining and industrial,” says Kevin Kellow, general manager – Infrastructure, at Iplex Pipelines Australia Pty Ltd, who explains that, with a ‘can do’ attitude, Iplex is committed to identifying “the most efficient and effective ways to meet customer’s needs”.

Iplex Pipelines was founded in 1938 and is now one of the largest pipe and fittings manufacturing businesses in Australia.

According to Mr Kellow, it offers clients “more” value added services than its competitors through an underlying philosophy of genuinely working to support the growth of their businesses.

“I joined the business in 1997. Soon after it became part of the Crane Group, and ever since it has invested in capital programs to ensure we provide systems that enable the delivery of world-class solutions to customers predominantly in the water infrastructure, irrigation, civil, construction and now mining sectors. We have a diverse range of products and services and have worked on some of Australia’s largest water projects; thousands of kilometres of Iplex pipelines have been installed across Australia.”

New Zealand-based building group Fletcher Building recently acquired Crane Group.

A new chapter for Iplex thus has begun.“The Fletcher takeover has been a

good move,” says Kellow. “They are a manufacturing-driven organisation and they have a lot of experience. They have a good balance sheet and they’re supporting us with capital for projects that pass ‘the

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acid test’. The real positive thing about Fletcher is that they don’t just look at the fi nancial results. They look behind fi nancial results, delve into strategies and understand their business. It has given us an opportunity to hone in our skills, refi ne our strategies and review our manufacturing footprints to take a whole-of-life approach on costing, all the way through to the customer from the raw material source.”

This has been a good year so far for Iplex Pipelines, which has secured A$180 million in supply contracts for the Queensland coal seam gas market.

“We have been awarded a contract for the supply of polyethylene pipe to QGC Pty Limited for its Queensland Curtis Island

LNG Project. This is a priority project of QGC, a British Gas Group business, to develop Queensland coal seam gas for Australian and international markets. The contract to supply pipe to the project has an initial value of around A$120 million. Deliveries are expected to start in December and will continue over two years, with a smaller three-year optional extension period,” says Kellow.

The QGC contract follows the award to Iplex Pipelines earlier this year of a contract to supply polyethylene (PE) pipe and fi tt ings to Fluor Australia for the Santos Gladstone

LNG Upstream Project. The value of the Fluor contract now stands at over A$60 million.

“Obviously we are delighted to be working with QGC to supply this large scale project. Our tender team was involved for close to a year to ensure that QGC’s exacting requirements were met. The award of these two major contracts positions us well for future demand over the life of the coal seam gas projects as further gas wells are drilled as part of the ongoing maintenance requirements.”

In order to supply the above contracts, Iplex Pipelines will be extending its footprint in southeast Queensland through the construction of a new manufacturing facility in the Toowoomba region, which is expected to be operational by mid 2012.

The new Toowoomba factory will enable Iplex to improve its overall delivery capability.

“We are confi dent that this ideally positions us to benefi t from the growing coal seam gas market in Australia and in particular, in southeast Queensland,” says Kellow.

The boom in this growing market has off set falls in more traditional sectors, he adds.

“Australia has a bit of a two-speed economy at the moment. We haven’t had both feet in the fast lane by any means. Irrigation, civil, and plumbing have all been quieter than you would expect. That has been off set though by very, very strong activity in mining and that is where we eff ectively have picked up the extra business.

“The Toowoomba factory will further improve things by giving us a manufacturing position in an

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iPlex PiPelines

area we weren’t present previously, so it will strengthen our ability to supply other markets in the area because it will essentially improve our footprint.

“There is a boom in the area that will last probably 10 to 15 years.”

Iplex, says Kellow, is the leader in Queensland coal seam gas market. “We’ve achieved that position because we’ve been willing to take on projects and invest. The coal seam gas and mining markets are critical to our growth in the future. So what we will do there is make sure the footprint is right, the technology for producing the material is right and then there is also the technology associated with the improvement in material.

“Then the other big opportunity for Iplex is around the water shortage in Australia – it will be addressed again shortly. Eff ectively, there are a large number of water projects that still need to happen; because of the technical and engineering off er that we have got on that side of the business we will be well-placed to take advantage of those opportunities as they arise.”

Iplex is also involved in rebuilding Christchurch.

“Without doubt, participating in the Christchurch rebuild program will provide some interesting challenges, and we are thrilled to be playing a part in rebuilding the city.

“The resilient mining sector and probable infrastructure spending in terms of irrigation and water shortages, and of course the continuing Christchurch rebuild, mean we have a lot on our plate,” Kellow says.

“We haven’t had both feet in the fast lane by any means. irrigation, civil, and plumbing have all been quieter than you would expect. that has been offset though by very, very strong activity in mining and that is where we effectively have picked up the extra business”

icon

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A New Zealand

icon Winstone Wallboards is New Zealand’s sole manufacturer of gypsum wallboards, which it sells, together with associated drywall systems, products and services. Its GIB® brand is a New Zealand icon.

By Ian Armitage

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Winstone Wallboards

Winstone Wallboards Ltd is New Zealand’s largest manufacturer and marketer of gypsum plasterboard, drywall systems, associated products and services. The company has been

operating for over 80 years and manufactures plasterboard systems under the long-established GIB® brand name, which extends to specialised products for noise, moisture, durability, fire and bracing requirements.

Around 75 percent of Winstone Wallboards’ products are used in the residential market, with the balance being used in commercial construction.

Its GIB® brand is a New Zealand icon and Winstone Wallboards has a proud heritage of being a New Zealand focused and New Zealand based company.

“We have facilities in Auckland, Wellington and Christchurch, and are part of the Building Products Division of Fletcher Building - a New Zealand based international company,” says David Thomas, general manager, who joined Fletcher Building in 1976 and took over the daily running of Winstone Wallboards in 2001. “Winstone Wallboards has long been a successful company and we have further consolidated its strong market position over the past decade. My 10 years as general manager have been challenging but enjoyable - with our success primarily due to a talented and hard working team.

“How is the business performing at present?” he adds. “I think the fundamental problem for us is the economic environment and my view is that we are doing as well as could reasonably be expected.”

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Winstone Wallboards

New Zealand’s building and construction industry has been heavily aff ected by the 2008 fi nancial crisis and subsequent economic downturn, with building construction dropping from a very high level to a record low.

“Building and construction has been one of the industries most aff ected by the economic downturn,” says Thomas. “Large drops in the number of residential buildings have driven that.

“When the downturn started, we undertook a major review and we downsized by about 20 percent and we stopped expenditure in certain areas. We basically tightened our belts to keep those unnecessary costs down.

“We did also make sure that we kept on investing in the right areas of the business to make sure we still provided the level of service our customers had come to expect.”

The Department of Building and Housing says too few houses are currently being built to meet demand.

“Conditions in New Zealand have remained challenging with continued low levels of activity in the residential and commercial construction sectors,” Thomas says. “The number of new housing starts remains at historically low levels.”

The low level of house building could lead to a housing shortage, which could boost demand for new homes in 2012/2013. This would create more opportunities for building and construction workers.

“In terms of where we have a lot of work ahead, that would be Christchurch,” adds Thomas, who was at a conference in Adelaide when he received news the quake had struck on 22 February. “Our plant was damaged in that quake and the operation closed down as staff left work to check on their home situations. In general, during that time, we maintained our customer service levels.

“of course, we will also continue to innovate, where possible. What we will always be looking for is new uses for drywall product, which will be difficult, but you never know – we might be able to develop a flooring product that could use gypsum”

“Of course, now, we are involved in the Rebuild programme, which will provide some interesting capability challenges. In preparing for this, a critical factor obviously is the level of activity that will be undertaken. We have used publicly available data about potential overall building levels, made assumptions about the rate of rebuild, including there will be suffi cient building labour capacity, and concluded that annual volumes will be at about 75 percent of the NZ record levels of the middle of last decade.”

He says that, from a national perspective, Winstone Wallboards has more than suffi cient capacity, but has decided to increase capacity in the Christchurch plant.

“This will be done during the 2011 Christmas shutdown period and will be up and running at the start of the 2012 calendar year; this will put us in a very strong position to service the market,” Thomas explains. “The pace of reconstruction eff orts in Canterbury is expected to accelerate in 2012.

“In New Zealand, no material improvement in trading conditions is

expected in the first half of the 2012 financial year, and the timing of a sustained and meaningful recovery beyond that is uncertain.”

“So then the challenge is making sure we stand out,” he adds. “I think it is fair to say we do that through our service. We have also tried, despite the downturn, to lift our service levels and be bett er than what we were before.

“Of course, we will also continue to innovate, where possible. What we will always be looking for is new uses for drywall product, which will be diffi cult, but you never know – we might be able to develop a fl ooring product that could use gypsum or something like that. That’s one area and we will look at others.

“I don’t think there is a lot we can do to increase the size of the plasterboard market in its traditional uses. We have to fi nd other areas where we can use our knowledge of how buildings work and are put together in New Zealand to maybe fi nd ways of re-engineering some products and services that are currently available,” Thomas concludes.

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Dimond is a supplier of roofi ng, cladding and rainwater solutions, including tiles, long run roofi ng and corrugate. Construction Outlook

learns more.

By Ian Armitage

New Zealand’s largest manufacturer of

roofing

Dimond is New Zealand’s largest manufacturer of steel roofi ng, cladding,

structural and rainwater goods. Business Development

Manager Mike Klemick tells Construction Outlook that the company produces an extensive range of products, which gives it the “ability to provide the product

steel

23

dimond

that is right for any customer”.“We are, I would say, an industry leader

in innovation, product development, technical backup and distribution excellence,” says Klemick.

Dimond was established 40 years ago and its team is comprised of around 160 dedicated staff spread throughout 10 sales centres – from Whangarei to Dunedin.

“The spread of outlets ensures that our products and support are readily available to serve the needs of our residential,

“We are, i would say, an industry leader in innovation, product development, technical backup and distribution excellence”

24

dimond

commercial, rural and industrial clients alike,” says Klemick

Conditions in New Zealand have remained challenging this year, with continued low levels of activity in the residential and commercial construction sectors.

It is its product range, innovation, service, backup and distribution excellence that sets Dimond apart.

“It is tight out there in the market at the moment,” Klemick explains. “There seems to been a hangover from the global fi nancial crisis in 2008 and the building industry has been slow to recover since then.

“It has looked like it would recover a few times but then it hasn’t quite got there.

In early 2009 Dimond launched a new logistics off ering to New Zealand – with

the aim of off ering bett er services to clients.“This is how we diff erentiate ourselves,”

Klemick says. “Basically what we have done is move to a central point of distribution management, so we have one company that handles all of our distribution requirements. Previously we had over 20 around the country, depending on what was happening. What we have done is work closely with Australian company DGL and a new fl eet of trucks and trailers have since taken to New Zealand’s roads.”

Designed specifi cally to carry Dimond’s extensive range of products, these trucks are a NZ fi rst, Klemick says. The unique ‘Cassett e Deck’ design allows the top deck of the trailer to be removed and smaller components to be stored securely in the bott om section. The top can then be replaced and the larger items loaded.This design not only reduces the possibility of damage to products during transit but also reduces loading times allowing goods to get to site faster.

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“With this delivery system being used by sister company Stramit in Australia, Dimond has been able to see the benefits first hand,” Klemick adds. “What we have also done, in addition to this, and this is very important, is invest in research and development and innovation. Why? Well, when sales tight, customers are struggling to find work, and margins are under pressure it is important to invest in such things. I truly believe that doing things better today than we did yesterday is the way forward in challenging times, and that means innovation in product, services, and processes.”

He says it is easy for most businesses in the building industry to put effort into immediate requirements to reduce costs and work harder at chasing sales, forgetting about the need for innovation.“We have always been strong on innovation. In the last two years we have introduced a measure of differentiation; it gives us an edge when we

“i truly believe that doing things better today than we did yesterday is the way forward in challenging times, and that means innovation in product, services, and processes”

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dimond

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are out there doing the selling. It is a new roofi ng product. The product is called DP955.”

DP955 is the latest innovation in roofi ng profi les. Designed not only to be stronger than traditional profi les but also more cost eff ective and faster to install. The new design provides stronger ribs to protect against buckling and a wide style pan to allow for safe foot placement. With a wider cover width of 955mm fewer DP955 sheets are required to be installed saving both time and money.

“The Dimond DP955 long run steel roofi ng profi le was developed in response to roofi ng installers and architects wanting a roofi ng solution that was not easily damaged by foot traffi c, whilst still off ering good economy,” says Klemick. “For many years, there was a sense of inevitability that metal roofs on industrial buildings would suff er damage. With the market more competitive, roofi ng spans being extended, contractors facing retentions due to damage, and leakage resulting from the damage, the time was right to fi nd an innovative solution. DP955 has a unique rib shape that is a world-fi rst for profi led metal roofi ng. The shape is much stronger than conventional metal roof profi les in NZ and Australia. Because of the strength in the rib, the profi le was developed with fewer ribs but with superior resistance to buckling, and wider pans to facilitate foot traffi c and save on fastening time.”

The DP955 has been received well by architects and installers who have experienced the diff erence and it recently won the Product Innovation Award in the inaugural Fletcher Building Innovation Awards announced in November 2011.

28

dimond

“We also have things like the Dimond Affi nity Cladding System and the Wide Cover Ridging. We are always looking to push the envelope, trying to uncover every opportunity and promote the strengths we have over those of the competitors.

“I think it is all about putt ing customers fi rst. That to me is vital. Customers are the lifeblood of any business. If we listen to the needs of customers and deliver on them, then I think we will be successful in the future.”

In New Zealand, no material improvement in trading conditions is expected in the first half of the 2012 financial year, and the timing of a sustained and meaningful recovery beyond that is uncertain.

The pace of reconstruction eff orts in Canterbury is expected to accelerate in the second half of the 2012 fi nancial year, however.

“Wherever the future lie, for us it is about making sure we uncover every opportunity and promote the strengths we have over those of the competitors,” concludes Klemick.

“it is all about putting customers first. that to me is vital. Customers are the lifeblood of any business. if we listen to the needs of customers and deliver on them, then i think we will be successful in the future”

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At Thermakraft we continue to push the boundaries in developing and sourcing the best building materials so that we can meet your needs in a continuously evolving environment. Thermakraft's large and varied range of products are available through all leading hardware stores, building supplies, timber merchants and roll formers throughout New Zealand. We also export our products worldwide.

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Consisting of a microporous water resistant film, sandwiched between two layers of mould and shrink resistant spun-bonded polyolefin.

It is intended for use as an alternative to conventional kraft paper roofing underlays,which are fixed over timber or steel framed roofs in order to limit the entry of wind into the roof cavity and to assist in the moisture management of the cladding systems.

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30

With Builtform you get the senior people involved in your project, no matter how big or small it is.

By Jane McCallion

Aninnovative approach

31

builtform

Established in 2008, Builtform Constructions Pty Ltd is a general construction contracting company located in Sydney, the heart of the Australian construction market.

While the organisation has worked across all areas of construction, it specialises in Design and Construct contracts.

Like most major cities, there is no shortage of construction companies competing in the Sydney market. What differentiates Builtform is the attention to detail shown at all levels with senior personnel directly involved at all stages of project development.

As Managing Director David Upton explains: “Our management team has accumulated many years of experience working for big construction companies, on large projects with prominent clients, so we understand their approach to projects. At Builtform we strive to give our clients a hands-on experience and develop shared goals. For instance, we have just finished a project for Hurstville Council worth A$6 million, in relative terms a smaller contract but complex nonetheless and requiring specialist skills. It was important for Hurstville Council to have access to key personnel at Builtform, therefore to ensure our client’s expectations were being met I would personally meet with them a number of times a week. This is no different for any other client. At Builtform, we add genuine value to your project, the senior people get involved, no matter how big or small it is.”

Presently the main challenge facing Builtform is the same as it is for all companies in the sector: Securing sufficient work in the wake of the global financial crisis. The construction market in Sydney is the largest in Australia, and when the crisis hit, it saw the biggest contraction in business and it has also been the slowest to recover. “We have generally confined ourselves to the greater Sydney metropolitan area and since 2009 there has been a steady decline in work in New South Wales and in Sydney in particular,” says Upton. “Current conditions have seen a change in the competitive nature of the market, some might say it is over competitive – we are seeing some companies are even bidding on projects at a loss, merely to meet turnover targets.”

Nevertheless, Builtform has succeeded in steadily increasing its turnover year on year, up to A$40 million in 2011. This revenue stream is generated from a large anchor project each year, supplement with a number of smaller projects. “Of course, we would like to do more, but given the current climate, we think we have taken the right course of action and have done well.”

“We have taken a longer term, pragmatic approach to the current climate,” explains Upton. “We have invested in our business, held onto our good people and we haven’t gone chasing work just for the sake of chasing work”. The company has invested heavily in training and development, particularly in the areas of Health, Safety, Environment and Quality control. Builtform hold ISO accreditation in all three areas and have a dedicated Safety and Systems Manager to implement a fully integrated HSEQ Management System. “We feel is another area that helps to differentiate us from other similar size construction companies working in Sydney,” says Upton. “We also have a business development team constantly looking for new opportunities. In short, rather than taking a reactive stance in a constrained market, we’re actively investing to grow our business”.

Builtform’s current ‘anchor’ project is the West Ryde Precinct Development for Coles

32

builtform

Group Property Developments. It is a two-stage project valued at a litt le over A$30 million, with an option on a third stage. The fi rst stage carried out under a Design and Construct contract was completed in August 2011. This building comprised four levels, housing community service facilities provided by Ryde Council with a further two levels of basement parking. Stage two consists of a full size supermarket with two basement car parking levels and a number of retail tenancies and is currently under construction.

As well as the building works, Builtform is also upgrading infrastructure and roads around the busy retail precinct. Along with the upgrading of services including the relocation of Sydney Water infrastructure and relocating of electrical services underground. Builtform has also constructed temporary parking facilities in order to minimise disruptions to the neighbouring businesses during construction.

“Managing risk on a project like this is our number one priority. There are many challenges not the least of which is a broad group of stakeholders with diff ering expectations and objectives,” says Upton. “We are not just constructing the building, we are working within an active community precinct”. Builtform’s dedicated Community Liaison Offi cer manages communication for the project, providing the various groups with an understanding of the programme and up to date progress reports. “This point of contact is invaluable for informing the community, as our construction activities do impact these groups, I believe that having her on board has further added to our level of service and

importantly reduces the anxiety felt by them,” says Upton.

Over the next three years, Builtform is planning to grow business by 75 percent, from A$40 million annual turnover to A$70 million. “Financially, it makes sense to increase our size to between A$50 million and A$70 million as at that point our overheads become more sustainable, though thing that makes us who we are, i.e. giving our clients direct, hands-on access to the experience and expertise of our management team,” explains Upton.

“Our growth plan is realistic and achievable, and will develop over the course of our next three year business cycle. By then, we hope that the market will have recovered and we will be able to take advantage of any upturn.”

“With our strong dealer network around the world, Volkswagen is present in over 150 markets. We adapt our sales strategies individually to the different structures and conditions of the markets and region”

33

?????????

Rock Form is a privately owned construction company that has been operating since 2005. We have built a reputation of providing good service and perform at a high standard of workmanship.

Our goal is to provide a professional, high-standard quality of work with a high degree of integrity and honesty. Rock Form is known for providing peace of mind to the builder of the project and safety is our number one priority without compromising any aspect of the job at hand. We ensure that all work is completed as per plans and critical measures are not compromised.

Phone: (02) 9671 5113Fax: (02) 9920 1731Email: info@rockform.com.au

www.rockform.com.au

“always build on the rock”

Rock FoRm P t y L t d

Rockform.indd 1 29/02/12 11:33 AM

34

Building Building bett er communities

Mick Boyle established

Abergeldie Complex Infrastructure in 1994,

its mission being to deliver the complex

infrastructure needed to build bett er communities.

He talks to Construction

Outlook.

By Ian Armitage

communities

35

abergeldie comPlex infrastructure

Abergeldie Complex Infrastructure is a leading engineering fi rm that operates as head contractor to state and local council

authorities, as well as utility suppliers and mining companies, delivering high quality, complex infrastructure solutions.

The business targets projects in areas, says managing director Mick Boyle, which require a “smart solution to complex problems” and it has expertise in a number of industries such as water and sewage treatment, electrical sub-stations, complex bridges and blind-bore drilling for mining projects.

Abergeldie is headquartered in Regents Park, NSW and has offi ces in Southern and Northern Queensland, the ACT and Newcastle. It has the ability to deliver projects across Australia and New Zealand.

“Abergeldie Complex Infrastructure was established by me in 1994 with its mission to deliver the complex infrastructure needed to build bett er communities,” says Boyle, who has led the development and growth of the business. “That mission statement has guided the company’s development, starting with a single offi ce in Sydney and expanding throughout eastern Australia. Abergeldie started in Sydney working on small, complex civil infrastructure projects such as bridges, dams, and marine works. With the number and scale of projects growing, we opened up in Brisbane, and now have offi ces in Newcastle, Mackay and Canberra.”

Abergeldie is a licensed builder in the New South Wales, Queensland, and the Australian Capital Territory. It is also licenced for demolition works and has, over the years, further extended the range of its operations through acquisitions of related companies with which they had previously co-contracted on larger, more specialised projects, Boyle says.

“In 2000, with an eye on opportunities in the mining industry, Abergeldie joined with John Zeni to establish Ardent Underground,” he explains, talking about one such acquisition. “This added blind bore drilling to our capabilities. In 2007 Abergeldie purchased 100 percent of Ardent Underground Pty Ltd, which

now operates as Abergeldie Mining. In 2008, the company acquired John Young (Kelvinhaugh) Pty Ltd, after a long period of association, bringing in-house a depth of expertise and experience in civil process engineering. The civil process portion of the business now contracts as Abergeldie Young Process Engineering, off ering design, supply, and installation services to a broad range of clients in the wastewater treatment, water supply, fuel, food and materials handling industries. We had been doing this kind of work ourselves on a reasonable scale, but we wanted more depth to our capabilities to and take on a broader market. John Young Kelvinhaugh had been a very well respected process-engineering operator, and with that acquisition we can now do a lot more, larger scale work, especially in the water treatment fi eld.”

Abergeldie also saw opportunities in the steel fabrication industry, having for several years sub-contracted out a lot of high value work of that kind on many projects. In 2009, it acquired 50 percent of ASM Fabrications Pty Ltd, which specialises in the fabrication of aluminium, mild steel and stainless steel.

“What’s next?” Boyle asks, “we’re targeting 30 percent growth year-on-year for the next three to four years. Certain key target growth sectors have been identifi ed but the business also is very capable of adapting to capture opportunities as they arise.”

The business is growing strongly at present, he says, and the team is focused on continuing this growth patt ern.

“2011 has been a good year for us. FY Revenue dropped a litt le in line with the market reduction but the business was able to maintain healthy profi t margins and develop a platform for future growth.

“At the moment, civil infrastructure is quiet in NSW and Victoria,” Boyle adds. “It has also been quiet in Queensland but we have noticed an increase in work over the last four to six months as the fl ood reconstruction work comes on line. Mining infrastructure in NSW and Queensland has increased in the last six months.

“The past year has certainly been quieter with many of the BER stimulus projects reaching completion and new

abergeldie comPlex infrastructure

projects being delayed by Federal and State elections, as well as by discussion about the mining tax. It also did not help that large parts of Queensland was affected by flooding in the first part of this year. These delays are now behind us and we are seeing more opportunities in the mining sector and in civil infrastructure work in NSW and Queensland.”

Boyle also says there is a trend towards Governments handing out infrastructure projects in large parcels to the larger companies. “A project worth hundreds of millions of dollars would usually be seen as beyond the capabilities of a company like ours, and we might not even be given a chance to tender,” he explains. “To combat this trend, we focus on parts of those project parcels that are just too complex for some of the larger companies to tackle because they do not have the special skills that we have developed over the years.”

Abergeldie may not take on all the biggest jobs, he stresses, but it tackles the hard ones that no one else can do - and does them well. Abergeldie’s blind boring expertise is a case in point. “By focusing on delivering complex projects, we are driven to innovate. Our blind boring capability is a good example of our ability to innovate. It is world leading. We have designed and built the largest blind boring rigs in the world capable of drilling 6.5m diameter to 600m deep in a single pass. Nobody is doing anything like that, anywhere.”

Blind boring is one of those areas of specialist expertise that has become almost a trademark technology for Abergeldie. Its application is much in demand. “Blind boring is particularly beneficial if it is a new mine situation,” says Boyle. “We have developed a method to drill shafts bigger

than anyone else in the world with the blind bore method and we have developed a tunnel capability. Its application is much in demand among clients who need to drill a new mine shaft. Blind boring is particularly beneficial if it is a new mine situation, because you don’t have existing underground access at the time when you need a new shaft especially if the mine location has poor ground conditions.”

A core of good people is Abergeldie’s greatest competitive and Boyle is aware of the importance of keeping them happy. “I think the most important thing is to keep doing interesting projects, because that is how you keep talented people interested,” he says. “What is the secret to our success? It is delivering good quality work for clients, and having high calibre people. When you have that kind of high-calibre team, you can meet and exceed your clients’ expectations, and we do. Exceeding client expectations also wins the respect of industry peers, which has paid off for Abergeldie in the form of a string of industry awards. A large part of the how and why of winning awards is about your client’s perceptions of your performance; do a good job that the client is happy with and the awards should logically follow.”

Boyle truly believes that Abergeldie really delivers on its promise to deliver complex infrastructure that builds better communities. “We do,” he says. “We also try to build a better community by donating a fixed percentage of our turnover every year to charity. A major part of the investment is in the sponsorship of a “Vinnies Van”, which supports the homeless in western Sydney. What is particular pleasing to me is that about 25 of our employees are volunteers that work regularly on that van. That is the type of people that make up Abergeldie and that is why we are successful.”

“We have developed a method to drill shafts bigger than anyone else in the world”

36

37

?????????

Winmalee Sewage Treatment Plant is a treatment facility located on the western outskirts of Sydney, NSW, Australia. The plant is operated by Sydney Water, with the plant servicing the population encompassing the lower Blue Mountains. The plant is located in an environmentally sensitive area and is located on an escarpment, near the town of Winmalee NSW. Site conditions are very constrained.

Sydney Water proposed some extensive modifications within their secondary biosludge reactor basin with additional pump capacity and pipe upgrades required. Prior to such works being undertaken the reactor basin needed to be emptied and sludge removed and transported to disposal.

The reactor basin has a filled volume capacity of some 8000m3. It was estimated that the average solids content was 8% throughout the basin with solids content higher at the bottom of the basin becoming less solid towards the surface.

ATEK Specialised Industrial Cleaning Services Pty Ltd , a specialist contractor in waste management, was engaged to provide a suitably economic solution to the problems presented by the site location, terrain conditions and environmental restraints.

The chosen solution involved the use of ProFab® geotextile dewatering tubes, vacuum truck technology, small amphibious dredging methods and the use of dewatering accelerants.

In total some 4200m3 of sludge in a transportable state was recovered through the use of the geotextile tube process. An additional 2500 m3 of sludge was captured in polymer treated settling tanks. All discharge water was returned within the STP system.

A traditional alternate treatment of pumping and cleaning with transfer of waste to a suitable waste facility has been estimated to be in excess of $500,000. The geotextile tube process was less than half of these costs.

Positioning the geotextile tube

Filling of geotextile tube commences

Sbr clean before During After

1300 788 618 www.a-tek.com.au

For more inforrmation or for a copy of the full case study, please contact Dominic Wiggett on dominic@a-tek.com.au or call 0424 994 354

ATek.indd 1 29/11/11 4:25 PM

38

Picture this: you’ve just won a contract to start working on a new site, let’s say mining – great news you say. You want to start work immediately but it means you need site offi ces, accommodation for

staff – all manner of facilities – and you need it to happen fast. What do you do?

The answer is simple: give e-KwikBuild a call.“e-KwikBuild manufactures and supplies pre-

engineered buildings across Africa,” says Andrew Hart, Head of Business Development. “Our products are suitable for anything from classrooms, medical clinics, accommodation units and low cost housing to bespoke workers’ camps and offi ces.

This is an exciting time for a rebranded

e-KwikBuild says Business Development

Manager Andrew Hart.

By Ian Armitage

Experts in aff ordable, pre-engineered

building solutions

39

e-KWiKbuild

“Our system allows buildings to be operational within a few days of arriving on site.”

Such is their quality that e-KwikBuild buildings can last a lifetime, whether built to last in one place, or moved between multiple locations. The quality of the materials means you have longevity no matt er your requirement.

“The solutions that we off er provide every modern comfort, fi nished to the highest quality, and have a staggering number of advantages over traditional buildings, like cost eff ectiveness, fast installation or fl exibility in usage – to name a few,” says

Hart. “Our units are assembled in as litt le as four days, built on either a concrete slab foundation or a light steel frame. Our high quality buildings are fully insulated and we off er bespoke solutions including carpeting, air conditioning and ablution facilities. All units come with a three-month maintenance plan and a fi ve-year structural warranty.”

e-KwikBuild structures can be constructed on any terrain by semi-skilled labour using a dry building process. The materials are weather-proof, fi re resistant, durable, and provide excellent insulation while meeting stringent regulations.

40

e-KWiKbuild

“e-KwikBuild delivers on large scale public and private sector projects,” Hart says. “In South Africa these have included providing 120 emergency school classrooms to the Department of Education in the Eastern Cape, Medical Clinics and laboratories for the Department of Health. We’ve been awarded a large contract at Cape Town Station to upgrade trading facilities and have become a major supplier to South African Police Service (SAPS) providing victim friendly support units at a range of training facilities.

“We are moving rapidly into the construction of worker camps for the mining, oil and gas sectors throughout Africa, recently winning a tender with the African Barrick Gold Group, the largest gold producer in the world.”

These are exciting times for e-KwikBuild, which has changed considerably in the last few months.

Together with Commercial Director Roger Stringer, Hart joined in November 2010; both coming from parent company Lonrho, which owns a 51 percent majority stake in the firm. The pair have been implementing significant changes at e-KwikBuild.

“Since Lonrho took a controlling interest at e-KwikBuild in October 2008, the management’s focus has been to increase production capacity, to meet demand and to grow the business. We are putting in the building blocks for growth; that has been a major part of my role. The opportunities for e-KwikBuild products are considerable, and we believe significant future growth can be generated through Lonrho’s pan-African presence.

“We wanted to get into a position where we were more responsive both in terms of sales and actual production. this is a lot easier when the factory floor is 50 metres away as opposed to the next province”

RS STEELWORKS cc was established in 2005 by Steven Moodley; This is a BBBEE Company with at least ten years experience in the Fabrication and Manufacturing of Steel Products.RS STEELWORKS sees itself as a major role player in assisting its clients to achieve their goals by providing a cost effective service without compromising quality.

OUR RANGE OF SERVICES INCLUDE; Manufacturing of Baseframes for the Prefab Industry Stainless Steel and Mild Steel Baseframes - Mazeleen Flooring - Ramps,

Landings & Staircases - Hand Railings & Bumper Rails - Security Gates & Burglar Bars; Custom Built Trailers - Portals & Lattice

Beams.We also Rollform C Section Lipchannel.

TEL: 021 945 3549 fax: 021 949 6823 rs_steelworks@absamail.co.za

www.p-world.co.za

contact:tel: 021 592 4777fax: 021 592 1177

email: sean@p-world.co.za

Proud to be associated with

KwikBuild

“We – basically – have been brought in to develop the business,” Hart says. “That is a two-fold thing: firstly there has been a rebrand and secondly we have restructured the company and reviewed the way the company does business.”

In terms of the rebrand he says the e-KwikBuild brand was relatively antiquated prior to him coming on-board; an image evolution was needed. The process is on-going, but already he is seeing some benefits.

“Now everybody at the company from the factory floor to site managers and sales managers understands who we are and what we are aiming to do,” says Hart.

“As far as the restructuring goes,” he adds, “we moved our production plant, for one; previously our manufacturing was in Port Elizabeth, far removed from our Cape Town HQ; we went offline over Christmas for eight weeks and we set up a brand new manufacturing facility in Cape Town. Obviously there is the streamlining and

42

efficiency savings to come from that but also we wanted to get into a position where we were more responsive both in terms of sales and actual production. This is a lot easier when the factory floor is 50 metres away as opposed to the next province.”

The relocation of the production plant will ensure that e-KwikBuild remains a market leader in the supply of high quality prefabricated buildings. The plant incorporates state-of-the-art applications to the manufacturing process.

“With the restructuring we also tweaked a little bit in terms of management structures,” Hart adds. “The highlight of this has been that we have been awarded our ISO 9001 certificate. That is the first of several ISOs that we’ll be chasing.”

When Construction Outlook last spoke to e-KwikBuild, less than a year ago; things were very different. One man – Sello Tlhotlhalemajoe – was the lone salesman with the daunting task of covering the whole country. He remains a huge influence but now has the support of a team with a centralised goal: grow the business, offer better value and get closer to customers.

“When I joined the company they basically had just Sello in sales – that is not an exaggeration,” Hart admits. “But now we have got four business development managers, of which Sello is one, responsible for different geographical areas. We also have three Business Development Analysts, and considerable back office support staff.

“Our HR team have worked hard to put in new systems, structures, hierarchy, training programmes etc.,” he adds,

“and now it is about reaping the benefits of that. Our BBBEE equity has risen from under 60 percent to over 80 percentof employees coming from previously disadvantaged groups.

In 2010, turnover at e-KwikBuild rose, with the company’s order book looking healthy; today things are even better. “We have already tripled

last years’ turnover,” says Hart. “That is the direction the company is going – upwards and forwards.

“These are very exciting times, particularly in further growth of potential in the mining, oil and gas industries.”

One of e-KwikBuild’s biggest contracts this year was the construction of over R20 million of classrooms, in response to

43

e-KWiKbuild

“these were big contracts requiring complex and rapid deployment. We see more of these in the future, as well as more commercial contracts. the commercial side of the business is our focus. We see growth in a lot of segments”

the Eastern Cape Government Emergency Schools programme. e-KwikBuild supplied, delivered and installed approximately 6000 m2 of classrooms and ablution blocks over a period of 10 weeks. “In response to our expanding work in rural schools and often impoverished areas, e-KwikBuild has developed a strong sense of commitment to the communities with whom we work,” says Hart.

In conjunction with the Department of Education, Social Development and professional teachers, e- KwikBuild, also launched a road safety campaign called “KWIKBUILD; Keeps you SAFE, Keeps you LEARNING.”

“Upon completion of all KwikBuild classrooms, the teachers will be provided with an educational pack, which includes posters, learning materials and a scheme of work,” says Hart. “All students will be provided with a high visibility armband to wear on their way to school, produced by a KwikBuild supported cooperative.”

A key on-going project is The Cape Town Station Traders Mall which was part of the Cape Town station upgrade project for

the 2010 World Cup. The original project was to build 150 units in time for the 2010 World Cup with the time frame of just one month from the initial enquiry to completion. Due to the popularity of the units, PRASA (Passenger Rail Agency of South Africa) engaged e-KwikBuild to provide a further 250 trader outlets. These range in size from 4 to 20m2.

“These were big contracts requiring complex and rapid deployment,” Hart says. “We see more of these in the future, as well as more commercial contracts. The commercial side of the business is our focus. We see growth in a lot of segments.”

e-KwikBuild parent company Lonrho, invests in and builds businesses in Africa. The company operates in 17 countries across the continent in fi ve strategic business divisions: agribusiness, infrastructure, transport, hotels and support services. These important industries provide some of the building blocks and foundations required for successful economic growth in Africa. e-KwikBuild is destined play a major role in the group’s infrastructure division.

Innovative

44

Innovative

Geberit continuously introduces new and innovative products to the market to satisfy the requirements of its customers.

By Ian Armitage

45

gerberit

Waiting for a flight from Cape Town the other day, I stumbled across the airport’s toilets. In all honesty

I can’t remember much about them. I do remember a thought I had though: Where would I go if we didn’t have access to a toilet? What if there had been no toilet, no sanitation?

With that thought on my mind, I then started to wonder where the sanitation at the airport came from.

When I got home I did a Google search.I soon found that Geberit supplied

the toilets and sanitation to Cape Town Airport.

So, it was them I had to thank. But who are they? Well, Geberit is a European market

leader in sanitary technology, with what it calls “flushing technology” as one of its core competences.

The company officially entered the South African market in 2007 when it acquired AMS, the then exclusive importer of Geberit products locally.

“Geberit operates sales offices in more than 40 countries, including South Africa,” says Mark Schurr, operations director at Geberit Southern Africa. “I was one of the owners of the AMS business before we sold to Geberit,” he adds. “Having built the business up from nothing basically, I have a huge passion for taking it forward.

“Essentially now, we are much better positioned and we have a huge multinational behind us. I think it is improving our credibly in the country in terms of who we are and what we stand for.”

That said, AMS did a great job of raising Geberit’s profile prior to the acquisition. “Before AMS imported Geberit product, as a brand it was largely unknown and unavailable in South Africa,” Schurr says. “Yes, it was available in isolated cases but what has happened since we came on the scene is that we have largely changed the way that people do plumbing – putting concealed systems into a wall, for instance, was once unheard of. So, I think we have changed the way a lot of people can do things; that is our great achievement.”

46

Geberit is today a well-known and reliable supplier of sanitary solutions in the South African market. Its marketing concept is targeted at the plumbing trade, specialist wholesalers, specifiers and end users.

“We’ve grown a very strong brand here,” says Schurr.

Geberit continually invests in R&D and is committed to integrating sustainability into all its work practices and products. Its range of products is designed for use in new buildings as well as in renovation and modernisation projects. It comprises six product lines in the two product areas of Sanitary Systems (Installation and Flushing Systems, Waste Fittings and Traps) and Piping Systems (Building Drainage Systems, Supply Systems).

“Geberit brand name products are innovative, durable and ecologically efficient and provide high-end sanitary solutions for retailers, plumbers, installers and end users,” says Schurr.

Close collaboration with customers and appropriate training and educational measures are important factors for Geberit’s success too and it has been involved in various high profile local projects including the Nelson Mandela Stadium, Cape Town Stadium, Crystal Towers Hotel, One and Only Hotel, George Airport, OR Tambo International Airport, Nedbank Phase II, Alice Lane Towers, Lynwood Bridge, AFGRI Head Office, Soweto Theatre, Killarney Mall Shopping Centre and the Moses Mabhida Stadium.

“Geberit continuously introduces new and innovative products to the market to

satisfy the requirements of its customers,” Schurr adds. “Three such products are: the Geberit Monolith which offers a stylish new alternative to the traditional exposed WC; the new Geberit shower element where the shower drain is now in the wall, which is perfect for the floor even shower; and the Geberit DuoFresh, which discreetly extracts unpleasant odours from inside the toilet bowl, purifies the air and releases it back into the room.

“We have managed to build up a very strong brand awareness locally and have established ourselves as a company people know and respect. We are seen as innovative, durable and professional, with high quality products.

“There are many benefits to choosing any one of our systems.”

Indeed there are. The benefits of choosing a Geberit concealed cistern system are not just in terms of aesthetics (having all the nasty bits hidden behind a wall), they are practical and functional too:

} Easy to clean toilets: Cleaning becomes much easier with a clear surface under the wall-hung WC, the cistern hidden behind the tiles or wall cladding leaving no exposed pipe work, ensuring hygienic surfaces in your bathroom.

} Space saving: a Geberit wall-hung solution takes up less room than a conventional WC and the concealed installation offers flexibility in confined spaces.

} Strength and stability: the toilet pan is bolted simply and securely to the installation element. In this sturdy construction, the toilet stays firmly in place and can support weights of up to 400kg.

} Water saving toilet system: Geberit’s dual flush and stop flush system conserves water, saving money and the environment.

} Accessible maintenance: Geberit cisterns are one-piece blow-moulded units and guaranteed not to leak. No need to break the wall - easy access, the actuator plate can easily be removed, providing ready access to all internal components. Geberit offers a 10-year service guarantee on their cisterns.

gerberit

} Silent filling and flushing cisterns: Geberit’s concealed cisterns are fitted with silent and fast action filling valves and quiet flushing valves, ensuring efficient, quiet and reliable toilets

} Invisible luxury: Geberit solutions adapt perfectly to every environment, no matter how much or how little space is at your disposal, providing flexibility and the freedom to design a truly beautiful bathroom.

} Creative bathroom design: Geberit’s discreet and stylish flush actuator plates come in a wide range of styles and finishes, so you can choose the one that perfectly complements your bathroom style.

Geberit enjoyed a boom off the back of local investment in infrastructure and the World Cup. It is now eying growth opportunities in Sub Saharan Africa and neighbours like Zambia. This is a player to watch.

To learn more about Geberit visit www.geberit.co.za.

48

Construction Outlook (CO) chats with Dante

Zorzi, commercial director of Civilcon, who tells us

more about some exciting opportunities at the company

in this Q&A.

By Ian Armitage

Construction giant Aveng Group recently announced that its profi t was down in a diffi cult year.

In a statement following the release of its annual results for the year ended June 2011, CEO of the Aveng Group Roger Jardine said, “South African construction and infrastructure environment has slowed signifi cantly, particularly in the public sector.”

Headline earnings per share – a measure of profi t – were down 37 percent while revenue held steady at R34.3 billion.

Dante Zorzi – commercial director of Civilcon

q&a

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ciVilcon

The JSE-listed company, however, experienced “strong growth” in its order book, which was up 19 percent to R37 billion.

Aveng warned that infrastructure investment by the public sector was likely to remain under pressure over the next two years.

Within that context, we visited Civilcon, a well established and highly regarded multidisciplinary civil engineering contractor, which has a CIDB rating of 8CE, allowing it to tackle individual projects of up to R130 million in value, to find out more about how life is treating them.

Commercial director Dante Zorzi (DZ) had some interesting answers…

CO: Dante, how are you doing? It’s great to meet you… First off, we wanted to learn more about your background in this industry? DZ: It is a family business, which I have grown up around. As a student I spent my holidays working here and upon completing university and getting my degree I started working for Civilcon full-time.

CO: What brought you into the industry? DZ: The fact that you are presented with new challenges on a daily basis means that you need to be dynamic and able to solve problems. This keeps you on your toes and the makes working in the industry exciting.

CO: What exactly does your role entail? DZ: A wide range of duties that includes business development, project management, strategic management and planning as well as marketing and market research.

CO: Are you enjoying the challenge? DZ: Yes, as I said the dynamics of the industry make everyday interesting. I also have a lot of flexibility and freedom to make changes where I see fit and support from the directors to implement my ideas.

CO: What do you think you bring to the role? DZ: I think I bring out the box thinking and youthful energy to the company. I am creative, a good problem solver and have an eye for detail. Being tech savvy also allows me to see innovations that may improve efficiency in the company and add a 21st century touch to the way we do things.

CO: Please tell me about Civilcon and your future goals? DZ: Civilcon is a well established and highly regarded multidisciplinary civil engineering contractor specialising in concrete structures specifically bridges and precast concrete members (pre-tensioned precast beams and other bridge related precast). Another large part of business operations is the roads and mass earthworks. Based in Olifantsfontein, we are predominantly active in Gauteng and the surrounding provinces with the capacity to serve anywhere in the country should the need arise. The company was established 30 years ago by Mauro Zorzi and his partner Luca Pennelli, and has a Construction Industry Development Board or CIDB rating of 8CE, which allows us to tackle individual projects of up to R130 million in value. This is the second highest rating and our goal is to ultimately reach a CIDB rating of 9CE, which puts us in the unlimited class for civil engineering contractors.

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CO: It has been suggested that construction has been slowing and that infrastructure investment by the public sector will remain low for some time. Given that context, how do you think the business is performing? DZ: The business is performing well considering that the industry has been hit by a dramatic slowdown post 2010 Soccer World Cup.

To be honest, the year started off fairly slowly and wasn’t looking that great, but things have improved with a lot of work starting to come out in recent months. Ultimately the next two quarters will determine what context this year will be viewed in and things are starting to look promising.

CO: How would you sum up the current state of the industry then? DZ: Compared to the pre 2010 World Cup boom years it has not been a good year for the industry. However this was an anomaly in the industry trend that saw a majority of companies rapidly expanding to meet the challenges of fi nishing the various infrastructure upgrades, stadiums and airports prior to the tournament. Post 2010 World Cup saw the industry in decline and a serious shortage of work in the public sector that resulted in thousands of job losses due to layoff s. As a result most of the listed companies are posting reduced earnings for the year. However during the national budget speech earlier in the year there was a promise of vast spending on further infrastructure upgrades that will be rolled out during the course of the next fi ve to ten years. The next phase of infrastructure upgrades will be dominated by the refurbishment and expansion of the

existing road and railway system as well as increasing the capacity of the countries water supply and wastewater treatment works. We are already beginning to see this work being rolled out so things are bound to improve.

CO: What are the current industry trends/challenges? DZ: Besides the recent shortage of work the biggest challenges facing the industry are: 1) Corruption in certain government departments and municipalities which has seen the emergence of what the media has dubbed “tenderpreneuers” or companies with political affi liation that are given work regardless of the outcome of the tender process; 2) The loss of skills in the industry and the rapidly ever-increasing cost of unskilled labour; 3) Labour unrest linked to annual trade union activity; 4) Strict labour legislation with rigid hiring and fi ring practices means that it is both time consuming and extremely costly to layoff people when the industry is in decline. This puts a lot of pressure on smaller companies and is ultimately enough to result in their closure.

CO: How are you working to overcome those? DZ: We continue to look for work and submit bids with clients that we know to be ethical and transparent while avoiding those that are plagued by corruption. We are constantly training our workforce so that we may improve their skills and work output. We do our best to plan for and manage the consequences of the annual “strike season” of

2420 ASkah SA Mag 1/4 pg MATERIAL.indd 1 9/2/11 3:00:44 PM

industrial action linked to the various trade unions associated with the industry. As for the labour laws, we hope that they will be relaxed in the future to allow for some fl exibility in what is on all counts a “seasonal” industry.

CO: Are there lots of opportunities for the company? DZ: Yes, with continued growth of our population and economy comes the need for infrastructure to meets the demands associated with this. Many old roads and bridges are being upgraded, or replaced, new infrastructure is being rolled out to rural areas that are beginning to boom. The rainy season alone presents a vast amount of work as older bridges struggle to cope with the amount of water we are experiencing of late. So despite the recent slow down things look promising. CO: Have you identifi ed a clear market strategy? DZ: Ultimately our market strategy is dictated by economic and political conditions within the country as the majority of our work comes from government contracts. As such we have dynamic strategy that’s gives us the fl exibilityy to quickly adapt to ever changing market conditions.

CO: Do you continue to innovate? How so? DZ: Yes we are always looking for ways to improve the effi ciency of workfl ows, reduce costs, and improve quality. This is done through both in-house innovations gained from fi eld experience and from various vendors off ering us products that are of benefi t. This industry is a constant learning curve as there are always new ways to do old things bett er, faster and cheaper.

CO: How do you see the industry developing? DZ: As one of the emerging economic powerhouses, South Africa can only grow from strength to strength. Its construction industry is the backbone of that growth and as this country continues to grow so the industry will rise to meet the demand.

We look forward to what the future will bring and embrace it with open arms, for this is truly a land of opportunity even though the industry tends to be a bit of rollercoaster ride. We will stick to our strengths and continue to produce the quality work for which we are renowned.

CO: How would you like to see the business develop, then? DZ: I would like to see the business continue to grow while maintaining profitability. Short term we would like to expand locally and ultimately receive a CIDB 9 rating. Medium term we would like start up in neighbouring African countries as there is a lot of opportunity in terms of construction of infrastructure in these emerging economies after years of civil war and political unrest. I would also like to see the company grow, not only physically, but also more importantly in terms of our skills, our efficiency and, our quality. There is an old quote -- I cannot recall the author -- that says, “You’re either moving forward or dying, stagnation does not exist in our universe”. I find it a very appropriate vision for the company.

Dante, thanks for answering our questions and for the wonderful insight.

ciVilcon

51

52

It began as one remarkable woman’s hobby and in 14 years has grown to become a notable player in the construction

industry and an empowerment success story. Director Tim Pott er talks to Construction Outlook about the rise and

vision of the Motheo Construction Group.

By Colin Chinery

successBuilt for

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motHeo

In the Rainbow Nation, Black Empowerment projects can be a façade, a blowout, or more often a scoreboard pass across a line from scrape-by to outstanding. With the Motheo

Construction Group empowerment fi nds towering achievement and a role model.

The inspiration of Soweto-born and former political exile Dr. Thandi Ndlovu, what began as a hobby saw her create Motheo Construction in 1996. Since then as developers, contractors and project managers Motheo has delivered over 34,000 serviced sites and 60,000 aff ordable housing units, translating into over R3 billion worth of aff ordable national housing stock.

Other projects include the R70 million Orlando rail station close to the World Cup training stadium, and consortium partner for the new head offi ce for the Department of International Relations in Pretoria, valued at R1.35 billion, with Motheo holding a 12.7 percent construction stake

“Our history is wrapped up in the delivery of low income housing and we’ve diversifi ed out of that background into what I would call low-tech building and civil structures,” says MCG Director Tim Pott er. “In terms of recognition as a player in the sector we are very well known, particularly in government circles where ninety per cent of our work is done.

“In terms of empowerment, Dr Thandi’s objectives are empowering not only Blacks

but also females. We are 54 percent Black owned and 52 percent Black female owned. Currently we have nine shareholders, of whom six are Black female and we have two black female directors who are both executive in the business. In terms of senior, middle, and junior management we are meeting all the requirements to score full points on the Black Enterprise Empowerment scorecard. We are employing a workforce of around 1,000, and of these 20 are Whites. So Motheo is predominantly a Black company.”

Pott er puts the national housing backlog at around two and a half million, and says part of the issue is straightforward but in human terms complex in its resolution. “If people are staying in traditional areas should they continue to live there if the world is urbanising?

“Obviously they need to live near their employment opportunities, so you end up with a scenario where those moving to work opportunities end up congregating on the outskirts of major cities. The Government is trying as fast as it can go to accommodate this incoming mass but the required bulk infrastructure continues to lag.

“On the other hand you have those who are resistant to move, and instead try to eke out an existence where they have lived traditionally. Should municipalities in those areas be doing housing infrastructure development, or looking down the track and facing the inevitable and allowing people to move on?

54

motHeo

“That’s the debate, but what is inescapable is that there are a lot of people to house. We are currently building four to fi ve thousand houses a year, and could do a lot more if the Government had the delivery capacity to release the projects.”

Pott er, a professional engineer with an extensive civil engineering background -including 18 years with Murray and Roberts – has been with the Motheo Construction Group since 1998. “We secure work in many ways - tendering for municipality property projects for example, as well as in the open market. We also negotiate contracts with clients who see us as a preferred contractor, and typically this occurs both in the private sector and with Government on the low income side. Work in this area is allocated rather than tendered on price because it is based on fi xed revenue - you advocate what product you will provide for the given amount of money.”

If construction fi gures are impressive, on-site subsidiary benefi ts can be incalculable. Collaboration and training involvement with local suppliers is one such area. “It’s a mindset and a process. We’ve probably worked with in excess of over 300 smaller builders, and hopefully we have left them construction and entrepreneurial skills that have helped them embrace new projects after we’ve moved on.”

New community cohesion is another. “Before starting a project we set aside two or three months, sit down with a local representative steering committee and agree what the processes and outcomes will be. We form a document, a social compact which says effectively, ‘this is how we’ve agreed to behave and this is the likely outcome’. If everybody plays to that piece of paper the project runs smoothly. If not you can guarantee that you will have a hiatus.

“This is probably a hallmark of why our projects have run so well. If you didn’t do this you would be foolish to start implementing them; you’d end up with endless debates about minor issues and everything coming to a halt.”

Success and a growing reputation for excellence and delivery can turn out to be a challenge however. “Having done quite a lot of

work in a number of provinces, there’s always the sense that if you have had a lot of work you should make way for others. So yes, success can be an impediment to your future, and this is one of the things we are having to deal with.

“Regionalism is another – if you are not based and fully active in a particular province, preference is given to those that are. And as you grow a business you tend to centralise, in our case Johannesburg, with satellites operating in those provinces where we have signifi cant work.

“and as you grow a business you tend to centralise, in our case Johannesburg, with satellites operating in those provinces where we have significant work”

55

“Another challenge is the corruption issues that have become a trend over the past three or four years. You face the fact that if you take a moral stance then certain projects for which you are eminently suited will just not come your way. It’s like anything where you are dealing with government as a client. So you step back and look for other opportunities, and some of our movement into the private sector is as a result of this.”

Pott er sees the private sector as one area of potential growth. “While Government housing projects should continue to provide a base load, our technical capacity is growing and this gives us the opportunity to work in other centres, particularly with parastatal and larger private sector entities.”

He is impressed by what he describes as the maturity with which the Group’s founder and Executive Chairman Dr. Thandi has approached the development of this business.

“She’s been in the fi ring line in regards to Empowerment and the ‘Is-it-Black-enough?’ and similar sorts of debates. Her approach has always been to blend

empowerment with capacity. And in growing the business over these 14 years Motheo has demonstrated empowerment while at the same time delivering on projects and giving a quality product.

“Other models have said in eff ect ‘Go 100% Black’ to demonstrate ownership of the business. In some cases this has meant tokenism, with traditional White businesses posing as Black businesses, or in other cases 100 percent Black businesses with inadequate skills and capacities. And that has resulted in failure. So since inception Dr Thandi has tried to walk the middle road, and over time I think it’s proved to be a successful model.

“As we transition from where we are now to a company that from an ownership perspective refl ects South Africa’s demographics - and that’s the intention - I think her strategy will prove to be correct. By then this will be a business doing R1 billion a year, capable of tackling projects of considerable size, and a force to be reckoned with in the construction industry.

“Already the mark we have left in the country’s residential sector is that here is a fully Black empowered entity that delivers consistently on quality and deadlines. If governments are looking for innovative thinking, pilot projects and consistent performance, Motheo Construction Group has a lot to off er.”