Metallurgy and process engineering company Multotec, established in 1973, employs close to 2 000 people and has a yearly turnover of about R3-billion and, in 2022, it exported about 60% of the products it made in South Africa, says Multotec Group CEO Thomas Holtz.
The company started by importing a screening product from Germany intended for the sand and gravel industry. However, it soon recognised the need and designed a product that was more suitable for the local mining sector and which could be manufactured locally.
“There were definite imperatives that gave rise to our local manufacturing capabilities, which led us to rent a property and start manufacturing screening solutions. At this stage, the company had some South African shareholders and a German investor,” he adds.
Its strategy was to diversify its product offerings within the mineral processing market and it added cyclones, mill liners and ceramic wear lining products to its portfolio.
Subsequently, Multotec also expanded its international footprint, taking a core range of products into the global market.
However, the company’s international expansion signalled a change in its journey. The further the company expanded beyond South Africa, the more it had to contend with new commercial issues, adapt its products to new markets and compete with a host of other multinational players, he notes.
“A definite highlight in Multotec’s history was our expansion into and success in Australia. Many South African companies go to Australia only to come back with their tail between their legs. We have set up a business there that is growing and vibrant,” he says.
Much of Multotec’s success can be attributed to the fact that the company follows its products and sets up manufacturing facilities in the territories where it operates, which enables it to offer good after-sales service to customers.
However, the company also becomes involved in the communities where it operates, which is a lesson learned from operating in South Africa, Holtz points out.
Further, Multotec’s most valuable asset is its people and the relationships they have with each other within the organisation, and this is a differentiator for the business.
“We operate from a developing economy base. Therefore, we know that when we move into a new country, as a business, we must understand the local community’s issues and become part of that community. We engage with the community, hire local people, train them and source as many products and services locally as we can. We also get involved in local projects and fund initiatives, such as schools and other local structures,” he adds.
Multotec will continue to focus on its people and intentionally drive the company culture to ensure it remains competitive, intact and strong.
“We will continue to invest in research and development and we will include smart technology in our products. At the same time, we will continue to work to make our equipment better and will keep innovating to stay ahead of the game,” he says.
“For the next 50 years, Multotec will evolve along with the industry. In the meantime, we will continue to focus on growing our international footprint and being successful in foreign markets, while building a more multinational infrastructure,” Holtz says.