The valve and control business in south africa is set for a major shake-up following the decision made by the multinational comapny Tyco to enter the local market in its own right. Tyco has been branded as being 'in a league of its own' and the bare facts about tyco group, as a whole, make for formidable reading.
The parent company, Tyco International, is a diversified manufacturing and service company, which is currently listed amongst the top 100 companies in the world. Tyco is the world's largest manufacturer and installer of fire protection systems, the largest provider of electronic security services and has strong leadership positions in disposable medical products, packaging materials, flow control products, electrical and electronic components and underwater telecommunications systems. The company, listed on the New York and London stock exchanges, operates with more than 180 000 people in over 80 countries around the world and has annual revenues in excess of US$22 billion.
In the field of flow control, Tyco is the world's largest manufacturer and distributor of industrial valves and controls, with 8000 employees and 35 manufacturing locations worldwide and sales in fiscal 1999, which exceeded $2 billion. The flow control operations of the group entered the European market about ten years ago, since when Tyco's outstandingly successful acquisition strategy has resulted in perhaps the most comprehensive range of established brand names, including Keystone, Vanessa, Hindle, Neotecha, Descote, Raimondi, Fasani, FloCheck, Flow Control Technologies, and many others.
It is no secret that end users and engineering companies alike are turning to single source solutions for their flow control needs. They want to rationalise procurement by decreasing the supplier base and developing alliances with reliable partners. So when Tyco decided to launch a European valve operation, a comprehensive product palette was an important target. The Tyco philosophy has been to grow quickly in order to provide all the flow control products and services which the customers need.
Since entering the European arena at the start of the nineties, Tyco Valves & Controls has experienced what can best be termed phenomenal growth. Sales have risen from just US$25 million in 1992 to a staggering US$600 million+ in 2000.
As major players in the flow control market, Tyco's principle is to provide total packages, including valve, actuators, accessories and network system compatibility. With in-house engineers and well-equipped assembly line, Tyco Valves & Controls can quickly come up with integrated package designs, which are custom made for specific applications. The finished unit can then be adjusted to suit the client's needs and fully tested before installation. The company also has extensive experience in the provision of actuated packages, which interface with the various fieldbus protocols to provide networked systems. So Tyco are not just shipping individual parts or even complete products, they are providing engineered packages, offering significant added value for the client.
Tyco moves into South Africa
Tyco entered the local market, using its well-proven acquisition strategy, by acquiring Germiston-based MeasureTech in March last year. MeasureTech had been formed through a management buyout, from the Jasco Group, of its measurement technology activities, which included local representation of some of the better-known Tyco brand names, including valves from Keystone and Vanessa as well as Anderson Greenwood Instrumentation Products. The acquisition of MeasureTech thus gave Tyco a running start in South Africa with a well-established customer base. Tyco added the benefits of total capability in valves and controls, both in manufacturing and marketing, to complement MeasureTech's existing portfolio.
MeasureTech will continue to supply and support the flow, level and pump products for which it holds exclusive representation. These include Controlotron clamp-on flowmeters, SAAB tank radar level monitors, Scott gas detection equipment, Preso flow sensors, Besta level switches, Hoffer flow turbines, Dosapro Milton Roy and LMI pump ranges, EMCO flowmeters and Scully tanker and gantry equipment. These highly reputable measuring devices complement the Tyco portfolio and allow the local company to come even closer to that ideal of a 'one-stop' solution provider.
MeasureTech will continue to operate in South Africa under its own name, whilst benefiting from the opportunities presented by having access to the product range and technical experience of Tyco Valves & Controls.
From the time of the acquisition, MeasureTech has made terrific progress in aligning its operational procedures and cultures to those of Tyco's global operations. This has been complemented with extensive training programmes for existing and new staff to ensure that they know the products, the potential applications and the potential limitations. This task has been particularly challenging as the Tyco Valves & Controls technical reference catalogue is more than two inches thick! By the way, although Tyco still believes in the need for hard copy product details, all of this information is also available electronically, either from a CD or, increasingly, off the web. A major advantage of this for customers is that drawings of the valves and other products can be pulled out in electronic format and there is no need for system engineers to tediously redraw these details.
One of the first challenges was to find the right professional people to support MeasureTech's new thrust into the valve market. Tyco as a company believes that it is crucial to success to make use of local, rather than imported corporate people. The new General Manager of MeasureTech, as from 1 May this year is Johan Venter, who has some 22 years of local experience in flow control, both from the supply side and from the end user viewpoint.
Tyco in operation
As a company which believes in ensuring that customers receive the very best possible service, Tyco makes full use of the Internet. The company's global operations are linked by an Intranet system, which enables personnel to (amongst other things) request assistance with application or product reference data. Such requests can be viewed by personnel across the globe and responded to in double quick time. Since problems are rarely new, and a good chance exists that a sales engineer in Sydney, Glasgow or Houston has come across and solved similar challenging client requirements in the past. This is a powerful tool, ensuring that the real depth of knowledge embedded in the global operations can be brought to bear even to solve an unusual problem in 'Darkest Africa'.
The confidence that Tyco and MeasureTech have in its products is illustrated by the fact that a full two-year guarantee is offered compared to the industry standard of 12 months. While the range of valves offered might at first sight seem large, the philosophy is that there will always be a product available, which will meet the exact needs of the customer. Whether you want butterfly, ball or gate valves, valves for hygienic use, hazardous gases, water or steam, Tyco can offer a comprehensive range of design types and sizes. Materials used in construction are chosen according to application and the range includes carbon, alloy and stainless steels, aluminium and bronze, as well as more exotic materials such as Inconel, duplex steels and titanium.
Tyco supplies valves and controls for virtually every industry and application, including the needs of the power, metals, sugar, brewing, water, pharmaceuticals and chemical/petrochemical sectors.
Tyco products are already well established in local industries where hazardous gases and liquids are used and the benefits of the company's strong links with major process industry operators throughout the world will obviously assist MeasureTech in further penetrating the South African market.
The objective is very clear, says Frido Langedijk, Tyco Valves & Controls' General Manager for Africa. It is to be the Number One in the valve and control industry in South Africa within three years. Having already achieved this goal in other markets, including Australasia (which has the closest similarity to this country), this is seen as a very realistic projection for a company which provides not only a dynamic environment to work in, but focusses all its effort into providing what the customer really needs. "Our customers are very clear in what they expect from us: prompt attention, on-time deliveries, a high level of application expertise, good product quality and the convenience of one stop shopping. Bringing all these aspects together means Tyco really stands out in terms of service. Naturally we can differentiate on cost too, as the flow of goods from our own manufacturing bases means we can keep prices competitive", says Langedijk.
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