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65 year old DCD Dorbyl (Pty) Limited, a global leader in the manufacture and supply of heavy engineered products and services, today officially launched a new look group under the condensed banner ‘DCD’. The name change marks a complete group restructure aimed at expanding current supply to emerging markets and niche offerings in developed economies including the USA and China. DCD exports 75% of its products and generates annual revenue in excess of R3 billion. 

The rebranded, overhauled group was introduced today at the roof wetting of a new world class facility for subsidiary DCD Ringrollers.  

The DCD group was originally formed in 2001 when existing management bought out the Heavy Engineering division of JSE-listed Dorbyl Limited.  Since then it has evolved as a strong, independent operator with a distinguished track record and competitive R&D capability. The current shareholders include Investec Bank Limited (44,4%), Siyahamba Engineering (35,1%) and management (20,5%).  Managing Director Rob King emphasises that there is no connection of any sort with the current JSE-listed Dorbyl Limited.

Going forward DCD will operate within four clusters – Rail, Mining & Energy, Defence and Marine.  King says the recent restructure has clarified vision and strategy and will better exploit synergies between group companies to promote cross-selling and expansion. 

“DCD’s companies are recognised as leaders in their fields internationally and at home,” he says. “The restructure will enable us to draw on the combined strength of the group as a whole and entrench our presence across all of our product and regional markets.” 

The Rail cluster, comprising DCD Ringrollers, DCD Rolling Stock and DCD Metpro, has long supplied the national railways, mining houses and industry as well as a significant export market.  DCD Ringrollers, the owner of the R380 million facility launched today, celebrates its 40th year manufacturing specialist forged steel products.  An annual production capacity in the new plant of 30 000 tons positions it to meet rising local and international demand.

The DCD Defence cluster comprises the manufacturer of Vehicle Mounted Mine Detectors - armoured mine detection trucks – and the only South African company established as a ‘programme of record’ with the US Military.  King explains that this positions DCD Defence to supply vehicles that equip the US Military’s route-clearing capacity. The company is a reputable supplier of mobile landmine detection vehicles and armoured personnel carriers to peacekeeping missions worldwide.  “Over 400 Husky’s have been deployed, taking over 7 000 hits with only 23 knocked out of commission as a result,” says King. 

A number of the companies in the Mining & Energy cluster, which includes DCD Heavy Engineering, DCD Venco, IWEC and Mine Support Products (MSP), are veterans of the power generation industry. “They have participated in the construction of all 23 existing power stations in South Africa and are presently supplying the new coal-fired stations Medupi and Kusile” says King.  Further, having participated in all of the country’s former nuclear programmes, the group is well positioned for involvement in all future nuclear powerplants. He adds that a cornerstone of success has been constant innovation, which today sees DCD investing in I-WEC - the first manufacturer in South Africa of wind turbines and blades. 

“DCD’s wind power initiative will entail the collaboration of companies in the group, with I-WEC manufacturing the turbine blades and completer turbines and also managing the wind farms, DCD Ringrollers manufacturing the flanges for building the tower sections atop one another and DCD Heavy Engineering manufacturing the towers themselves.  “The collective effort will ensure we not only pioneer this market in South Africa, but retain our competitive advantage in the long-term,” says King.  

DCD Marine offers turnkey ship repair solutions to the marine and oil & gas sectors across Africa. It boasts Africa’s largest shipyard situated in Cape Town, and also offers mobile facilities for offshore services.  

King points out that DCD is not only a driver of the South African economy, but a committed participant in the local labour market.  He is adamant that profitability goals be linked with job creation and skills development. To this end DCD has invested R35 million to date in a Public Benefit Organisation (“PBO”) to boost the skills pool for the group and the industry at large. “During 2011 more than 500 students benefited from funding provided by the PBO,” he says.

King is optimistic about future growth and the group’s ability to maintain above average profitability.  “The restructure has enabled DCD to expand into product support and aligned services to seize a greater chunk of the heavy engineering value chain.”  He concludes that the group is now positioned to compete effectively with listed peers.

Ends.
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Issued by: Envisage Communications
Nicole Katz/Michèle Mackey
(011) 325 5944//082 497 9827

On behalf of: DCD 
Rob King, MD
(016) 428 0000/ 082 575 6708

Issue date: 27 January 2012 

Posted in: DCD Group
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