Tyre protection chain supplier Omsa-Pewag is focused on expanding its presence in the South African quarry industry through increased product and service awareness to reach its 150% growth target by year-end.

“We aim to achieve this goal through the restructuring of our sales strategies, which entails the addition of sales personnel, Omsa-Pewag GM Roger Kuch explains.

He notes that the biggest demand for tyre protection chains is in the openpit mining industry, with little demand from the quarrying industry, where Omsa-Pewag is promoting the benefits of its products.

The company is also focusing on expanding its market share in the rest of Africa and has already secured two significant contracts.

Omsa-Pewag was awarded a contract to supply tyre chains to an openpit diamond mine in Botswana last year as well as a contract by a copper mine in Zambia in July.

The Botswana contract has been completed.

The Zambian contract involves supplying 16 tyre chains with a total weight of about 60 t. The shipping time has been brought forward so the project will be completed ahead of time, the company notes.

“We are currently well on our way to expanding into African markets, thanks to these contracts,” says Kuch, who notes that Omsa-Pewag is promoting its tyre protection chain products in Tanzania and Ghana through additional sales representatives.

The company experienced a 34% increase in revenue for the 2011/12 financial year, owing to an increase in awareness regarding the benefits of tyre protection.

Omsa-Pewag entered the South African tyre protection chain industry, which is estimated to generate between R50-million and R60-million a year, in 2009.

However, the potential market value is believed to be bigger. “Many mining companies don’t use tyre chains because they are not aware of the benefits; therefore, many expansion opportunities exist,” highlights Omsa sales and marketing director Marco Errath.

He explains that, as people are placing more emphasis on maintaining rather than buying equipment, the value of using protection chain for tyres, to increase the life span of earthmoving equipment, is increasingly being realised in the mining industry.

“Customers are also supplied with a lifetime product warranty. Companies provide us with samples of the rock that the tyre chains will be exposed to and we estimate the lifetime of the chains accordingly,” Kuch explains.

Omsa-Pewag further provides after-sales services for unexpected maintenance, and regular interval servicing.

Meanwhile, Kuch notes that while cheaply priced imports are a reality in the tyre protection chain industry, Omsa-Pewag has a 30% share in South Africa’s tyre protection chains market.

He says customers increas- ingly realise that cheaper imports do not last long and are not cost effective. “Compromising on quality for immediate affordability makes less sense econo- mically,” warns Kuch.

Omsa-Pewag states that, in future, it hopes to enter the under- ground mechanised mining industry and is conducting research on the use of underground tyre protection chains to realise this goal.