Times have been tough for Megamix, the Argent Group's Cape-based construction materials supplier, but it is making its presence felt in a highly competitive market, says Victor Cinamon, Megamix's chief executive.
Megamix now incorporates Villiersdorp Quarries, the group's 200ha property which holds rights to quarry quartsidic sandstone to supply refined stone material to building, construction and engineering customers.
Cinamon says the plant supplies 27 000 tons of sandstone a month varying in size from 37mm to 6,7mm.
He says the rationalisation will produce significant cost savings and better utilisation of resources. We are streamlining our operations and jacking up our systems and efficiencies, he says.
Things have been slow in the Cape construction industry, but there are signs that business is going to pick up.
There is more confidence in the industry as the government is starting to release funds for large-scale projects. The key to improvement, he says, is a take-off in the mass low-cost housing sector particularly at Hermanus, Guguletu, Khayalitsha and Phillipi. The proposed Waterfront conference centre is also set to be a major project.
Cinamon says Megamix, once considered an upstart in the Cape construction industry, was supplying 5 500 cubic metres of readymix concrete a month, an output he estimated would reach 8 000 cubic metres a month within a year.
We are a small player in the industry, relatively speaking, but we are attempting to become the most efficient supplier with a reputation for top quality, he says.