Established in 2001, with the management buyout of Dorbyl’s metal trading divisions, the Stalcor’s success is built on the acquisition of Baldwins Steel and Stalcor. These two long established market leaders jointly offer a range of metal products and distribution channels.
Stalcor is back. It has emerged from the melting pot as a bright face in the stainless steel industry. Stainless Steel and Aluminium Corporation (Stalcor) was established in 1973 and after 43 years in the industry, the company is going back to its roots. It has been reborn with a fresh new face and a reinvigorated new brand.
Stalcor has, since its inception, been an independent entrepreneurial stockist and distributor concentrating on stainless steel and aluminium. Over the years, this prestigious business has been owned by JSE-listed companies, Malbak Limited and Dorbyl Limited.
In 2002, Stalcor and Baldwins Steel were acquired by a management consortium and formed part of Kulungile Metals Group. In 2007, Kulungile Metals Group was sold to KMG Steel Services Centres, a company controlled by Blackstar Group. The group grew successfully for the next two years, acquiring Global Roofing Solutions, the owners of Brownbuilt Metal Sections, HH Robertson, Country Roofing and Helm Engineering.
Then in 2009, the aftershock of the 2008 global financial crisis began in South Africa. “Although in part this was alleviated by the infrastructure spend from the FIFA World Cup Soccer, it was felt throughout the steel, construction and manufacturing industries,” says Chris Ransome, the newly appointed chairman of Stalcor. The Stalcor business adapted and resized in accordance with market conditions. “Survival during this period was an achievement in itself,” says Ransome. “And now we are returning Stalcor to its former glory.”
Stalcor, which has four branches nationally, has over the past year relocated and merged its Durban, Cape Town and Johannesburg branches with Global Roofing Solutions into bespoke exciting new facilities.. “The company is growing in line with market and customer demands,” says Ransome. “The relocation of the Durban branch highlights the requirements of the market and Stalcor’s belief that dynamic innovation is the best solution.”
Stalcor’s most exciting initiative is the “first of its kind” customer loyalty incentive in the metals industry. Stalcor has implemented programs that include 14% interest in the Stalcor business for the benefit of Stalcor customers. This will allow Stalcor customers to participate in an annual loyalty-based return equal to 14% of the Stalcor Profits yet still participate in capital appreciation of the business.
Chris Ransome and Gordon Odgers, an independent non-executive director of Stalcor, both saw the benefits of a similar project in the automotive aftermarket industry. “A loyalty-based customer initiative is reflective of the close relationship that exists between the company and its customers and has proven to generate considerable revenue growth and profitability,” says Ransome. “It is a very effective and transparent tool for continually building customer-base and a truly innovative way to reward your loyal clients.”
As Stalcor’s brightness is forged, with it comes a refinement of its vision as a customer-centric stockist and distributor. Its “can do, will do, must do” attitude, makes it an essential contributor to its customers’ success. It believes in sharing its triumphs with its loyal customers and ensuring staff feel proud and invigorated to be part of the Stalcor family. Suppliers view Stalcor as a highly valued and reliable route to market.
“This is only the beginning,” says Ransome with a glimmer in his eye.
“Staff are invigorated and more exciting developments and innovations are on the cards.”