DPI Plastics forms part of the Dawn Group, which specialises in the manufacture and distribution of branded hardware, sanitaryware, plumbing, kitchen, engineering and civil products. An official Dawn financial statement has shown that DPI Plastics substantially increased revenues in the 2012 financial year.

DPI Plastics managing director Gerhard Kotzee attributes this dramatic turnaround to the company’s restructuring strategy, in addition to improved conditions in the infrastructural sector of South Africa. “The restructuring strategy was implemented 18 months ago, and involved the introduction of a programme to improve internal efficiencies at all levels of the company.”

According to Kotzee, an increase in government tenders issued has played an important role in improving market conditions during the course of 2012. “There has been a distinct rise in government spending this year and, as more tenders continue to be awarded, there is a feeling of stability and optimism among contractors in the market,” he continues.

Kotzee points out that the improved market conditions has resulted in a steady rise in sales volumes across the entire company’s range of PVC-U and PVC-M pipes and PVC-U fittings. What’s more, he highlights the fact that the company’s range of recently launched Ultralok coupling systems have also been well received by the local civils and mining industries.

“Developed in-house by DPI Plastics, the patented Ultralok PVC-M coupling is an innovative product for the jointing of plain-ended pipes. This innovative product was introduced to the civil and mining industries in the first quarter of 2012 in standard 105 mm and 110 mm sizes, for use in applications of up to 16 bar pressure,” he adds.

The company plans to expand its product offering in 2013 to include a comprehensive range of Ultralok sizes that include; 155 mm, 160 mm, 200 mm and 210 mm.

Although the 2012 financial year has been a big improvement for the company, Kotzee admits that labour unrest in South Africa has proven to be a major challenge. “Prolonged strikes across numerous sectors have had a negative impact on investor confidence in South Africa, which in turn has negatively impacted on growth. We have taken a proactive approach towards this trend by investing in training programmes that empower its people, in order to ensure that they are provided with the skills to excel in their positions, while creating potential for future career growth.”