Capital Equipment News February 2017

BUSINESS: ROAD MAKING EQUIPMENT

The capital investment has allowed Stampede to expand its Isando, Johannesburg manufacturing facility to increase production volumes.

COMPACTING MORE VOLUMES INTO AFRICA

O n July 1 2016, a con- sortium of investors acquired the business of Stampede Compac- tion Equipment, the only South African designer and manufactur- er of light to medium compaction equipment in its class of walk-behind and ride-on roll- ers. The transaction saw a critical injection of working capital into the business, in line with Stampede’s strategy to aggressively expand both its manufacturing capacity and footprint in South Africa and sub-Saharan Africa at large. “A consortium of investors has injected additional working capital into the business to fast-track manufacturing and product enhancements – projects which were already on course,” says Marco Capazario, sales & marketing director at Stampede. “This needed a substantial amount of working capital. Seven months into the deal, we have been able to make the factory a lot more competitive, both in terms of quality and volume.”

Following a sizeable capital injection, Stampede Compaction Equipment, South Africa’s only designer and manufacturer of light to medium compaction equipment, has expanded its manufacturing capability and is ready to increase its footprint to roll out its range of locally-made walk-behind and ride-on rollers into the rest of Africa, and even beyond, writes Munesu Shoko.

Key improvements The capital investment has been spread across several functions of Stampede’s business. The first and key project was the expansion of the Isando, Johannesburg manufacturing facility, allowing the company to increase production volumes. “The production expansion has doubled our output capacity in a short space of time and enabled us to target a 30 to 40% share of the markets we play in over time,” says Capazario. Additionally, a portion of the capital injection went into information technology (IT) and systems efficiency, which he believes is a key enabler in improving both quality

and production capacity. “Optimisation of supply chain and improved production line efficiencies is key to ensuring we remain a low cost producer of quality products,” says Capazario. There was also investment into both people and related training. This entailed bringing in trained skills sets on hydraulics, diesel mechanics and people with relevant experience in the compaction industry. To date, the company has added about eight key personnel to its complement of 60 employees. “We have also managed to upskill our people, putting them through formal training

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