Pilot Crushtec International is the new sole southern African distributor for Metso’s mobile and aggregates segment, and both crushing and screening giants in their own right are excited about the prospects of future growth, writes Munesu Shoko.
Following a near six-month search for a fitting southern African representative,
Following the end of its 10-year relationship with the Barloworld Group last year at the beginning of December, Metso has been on the lookout for a new representative for the southern African region. Top of Metso’s key considerations was a dealer with the capacity to further grow the brand, not only through increased sales, but also strong customer relations and a good understanding of the significance of after-sales service, according to Eric Maricot, vice-president of sales and services at Metso Southern Africa.
In Pilot Crushtec International, Maricot believes Metso has found an ideal partner to drive its business forward in southern Africa. Maricot says it was an easy decision to opt for Pilot Crushtec for a simple reason: its core business is Metso’s core business. He adds that the new partner is a customer-focused and service-centric company that is well versed with the dynamics of the crushing and screening business.
Backed by 26 years of crushing and screening experience, Pilot Crushtec International is a popular name in the local crushing and screening space. Apart from previously representing several other international brands successfully in southern Africa, Pilot Crushtec International has also, over the years, made its name with its own VSI and Pilot modular ranges manufactured at its ultra-modern, 10,000m² Jet Park manufacturing facility close to Johannesburg’s OR Tambo International Airport.
The company was previously very successful with the
Sandro Scherf, chief executive officer of Pilot Crushtec International, is also excited about the opportunity to represent Metso in southern Africa, a brand he regards as the global leader of the crushing and screening space. “Both partners are excited about the new venture. For us, Metso is the best, the most recognised brand with the best heavy-duty mining crushers. For them, they also recognise that we would offer the best support and service to their existing and new clients. We are both excited and looking forward to great things,” says Scherf.
Both Maricot and Scherf maintain that the response to Pilot Crushtec International’s appointment from the existing Metso customer base has been positive. Maricot says most customers have expressed their confidence in Pilot Crushtec International’s abilities. Another key driver to this deal is that the new representative already has strong ties with some of the biggest crushing and screening contractors in southern Africa, and these have always been loyal Metso users for many years. Some of the big names that come to mind as far as this is concerned are Danoher Contracting, the Raumix Group, B&E International and SPH Kundalila, to mention a few.
“They are aware of our support strengths, and matching that with the Metso strengths, it’s a powerful package for them. The reaction from customers has been positive all round with not any single expression of dissatisfaction,” argues Scherf, adding that most of the big crushing contractors appreciate that crushing and screening is all that Pilot Crushtec International does, with no dilution of focus.
“Crushing and screening is a niche business and we needed an associate with the knowledge and experience that would provide us with an effective window into the market,” says Eric Bonin, Metso general manager of Distribution in Africa, Middle East and Turkey. “Now that we have the right partner, we have great opportunities. A lot of boxes have been ticked from day one and we believe our brand is in good hands.”
The distributorship agreement, which came into effect on 2 April 2016, is initially for a period of five years for the whole southern African territory, excluding Portuguese-speaking countries of Mozambique and Angola. In a strategic move aimed at bridging the language and cultural barrier in Mozambique and Angola, markets which Maricot deems to have strong historical links with Portugal, some two years ago Metso incorporated its operations in these two countries into its Portugal branch. Maricot believes the language barrier is quite a pertinent factor in doing business today. Therefore, Pilot Crushtec will be responsible for South Africa, Malawi, the Democratic Republic of Congo (DRC), Zambia, Zimbabwe, Botswana, Lesotho, Swaziland, as well as Tanzania.
Under the agreement, Pilot Crushtec International will be responsible for the whole range of Metso mobiles, both on the construction and mining side of things. On the static and modular side, Pilot Crushtec will take charge of Metso’s aggregate business, while Metso Southern Africa will keep the mining segment.
Already, Pilot Crushtec International has invested in a sizeable inventory of both mobile and static machines, as well as spare parts. It has also moved fast to address matters relating to after-sales service. “We have already ordered R25million [US$1.58 million] worth of spare parts and also placed an order for 10 mobile units,” says Scherf. Furthermore, Pilot Crushtec International has taken on board 11 of the core of the ex-Barloworld sales and support team which used to specifically look after Metso machines. Pilot Crushtec International will also take over any existing service agreements, which Scherf says aren’t many. “We will take over any support and service related contracts, as well as warranty obligations Barloworld had in place,” he says.
Over the years, Pilot Crushtec International has successfully distributed from its South African base across the southern African region with no specific branches. Scherf believes that the current volumes do not justify astronomic investments into own facilities elsewhere outside South Africa, but he is of the view that own branches is something they would openly consider in future. However, the company’s immediate priority is to work through sub-dealers in its area of jurisdiction. “Ideally we want to work through dealers and distributors, and that will be the priority in the next year or two,” says Scherf. “They must be people who are committed to the brand and are in line with our values.”
Despite current challenging market conditions in the region, Pilot Crushtec International is looking to push at least 30 units into the market this year. “There is just not enough business to expect big volumes beyond that number,” says Scherf. However, he believes 2016 will be a lot better than 2015. “Last year was the toughest year in our existence. I think this year we will see some improvement but not on a large scale. Maricot agrees, saying that 2016 will still be another tough year. To survive the storm, he reasons that one needs to be very customer-centric and service focused. “In South Africa, business confidence is at its lowest, and it’s quite a challenge. However, we see a bit of opportunity elsewhere in the region, with the DRC being one of the few markets beckoning,” says Maricot.
