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Diesel Rebar & Mesh (Pty) Ltd   
 

About the business

Diesel Rebar & Mesh started in 2009 as a reinforcing steel fixing company, handling assembly and installations for other reinforcing steel suppliers. In November 2011, market research by business owner and manager, Rodney Mphyatshirema, a qualified civil engineer, identified the lack of a Black-owned reinforcing steel supplier to the South African construction industry. Not intimidated by significant start-up costs, he opened the doors to Diesel Rebar & Mesh with one small, second-hand rebar bending machine, a grinder for cutting steel and hired trucks for customer deliveries.

The challenges

Despite reasonable business growth, several challenges threatened to destabilise operations. Product quality and delivery, sound business decisions and a low to moderate turnover had to be addressed.

Seda interventions and support

Seda’s SBAT assessment confirmed the need for a quality management system, access to a vendor database, transport for client deliveries, management training and a marketing strategy and tools to attract sales. Seda assisted the business with the installation of a quality management system (SABS certified ISO9001) and business management training. The company also received R600k incentive funding for additional bender and cutter equipment as well as a crane to speed up production and the loading and offloading of steel.

The outcomes

Seda’s support has put Diesel Rebar & Mesh on a sustainable growth path that has helped the company to:

  • improve turnover from R1.5 million to R6,5 million
  • improve general business practices and operations
  • create 14 additional jobs to manage the increase in production
  • relocate to larger premises in Rosslyn, Pretoria North
  • acquire company vehicles and new machinery to manage the increase in demand for their services.