Restructuring Ahead Of Expected Mining Boom

Valves supplier and manufacturer AR Controls is positioning itself during the lull of the prevailing commodity slump, to ride out the downturn and take advantage of the next mining surpercycle, predicted by the company to start in 2018.

- Victor Moolman

AR Controls MD Julien van Niekerk says the company is undergoing a period of internal and external restructuring, which includes moving to larger headquarters in Vanderbijlpark, south of Johannesburg.

The restructuring, which started in 2016, should be completed by the end of 2018.

“Human resources [is] one key area that we are investing in heavily. During 2017, we have projected personnel growth of 60% in our sales department, 50% in our engineering department, 33% in the finance and administrative departments, and at least 50% in our drafting office,” he says.

The copper, gold and uranium industries are of particular interest to AR Controls because of the corrosive slurry that is produced by the mining of these ores, says Van Niekerk, pointing out that Africa, as well as Australia and South America, are rich in these minerals.

“The main goal is to get our company structure to a place where we can effectively take advantage of the upturn in commodity prices in these territories. This type of structure follows strategy, which follows planning, and thus requires time,” Van Niekerk explains. 

However, the company is aware that time is of the essence when supplying valves to clients and subsequently keeps a “super stockholding” of valves, actuators and controls to facilitate short delivery times.

Van Niekerk says AR Controls houses one of the largest knife gate valves and quarter turn valve stockholdings on the African continent.