DCD-Dorbyl Marine has acquired the business interests of its longstanding partner Globe Engineering Works (GEW) for an undisclosed sum.
DCD-Dorbyl executive director Johann Venter says the deal became effective 1 April. He declined to say how much his company paid for its former business partner.
“I`d prefer not to make that public, he told defenceWeb. “There`s lots of synergy between the two companies and a 90% overlap in markets. We are not buying market-share but capacity. We`ve been sub-contracting to each other in any case,” Venter added.
He described GEW as a small but important company that was “very service orientated” in the machining and detail componentary market. DCD-Dorbyl, by contrast is strong in project management and is the only Lloyds registered shipyard in SA.
The purchase was therefore to make the merged entity “competitive on a worldwide basis… it made good business sense to integrate,” Venter added. “The majority of our customer base is international: so this acquisition should be seen in the light of an export business. Our customers compare Cape Town to other yards in the world, including Walvis Bay and the increasing competition from other ports in the rest of Western Africa. Given this scenario one can understand the need to offer superior service excellence to stay competitive, especially in the current global financial situation.”
Asa result of the acquisition, DCD-Dorbyl now also owns GEW`s 50% of an existing 50-50 joint venture, Nautilus Marine, a painting, blasting, corrosion protection and tank cleaning company.
Both DCD-Dorbyl Marine and GEW are situated in close proximity in the Port of Cape Town, a keystone in the Western Cape`s vision of becoming the preferred world class service hub for the West African oil and gas sector. “This could only be achieved by putting DCD-Dorbyl and GEW together to create a strong, streamlined, viable entity with the required infrastructure and financial muscle to invest in modern infrastructure and skills to comply with the high standards required by the offshore oil and gas companies. Neither Globe Engineering nor DCD-Dorbyl Marine could have done this on their own,” Venter says.
Each company will continue to operate from its current premises and there will be a rationalisation and consolidation on the services side as far as HR and administration is concerned. “We will be creating a more efficient operation by merging our capabilities and resources which will result in us becoming more competitive in our elected market arenas, with increasing focus directed towards the oil and gas sectors. This will naturally have a very positive effect on our core business of ship repairs and upgrades.”
According to Venter the new entity will “certainly attract the larger projects which will give work to the wider Cape Town industry and ensure the viability of its suppliers by offering a full spectrum of capabilities.”
“Our plans for the immediate future include major investments in capital equipment in terms of specialist on-site machine capacity; specialist valve testing equipment; and piping detail design, pre-manufacture and installation equipment,” Venter further adds.
“This new technology will ensure that we utilise our overheads more effectively, which in turn means that we will have a wider product offering to present to the market.”