Page 27 - Best of 2016 English

Not only is the Corrugated Group number two in steel in Kenya and neighboring Uganda, it also holds a leading position in cement production in both countries. Salzgitter Mannesmann Interna- tional has also been making itself indispensable here for some time. Suraj Patel, 26, who repre- sents the fourth generation to head the company, says, “We are always very happy to know that Düsseldorf is supporting us in acquiring the base materials.” And that is no small matter: Every two months, a freight ship with some 40,000 t
of so-called cement clinkers, a base material for cement production, is unloaded in Mombasa. ere are also deliveries of coal and gypsum, all organized by SMID. e people from Düsseldorf even organized and delivered the cold rolling mill that the group put into operation 25 years ago, with many other systems added during the years. e orders in Düsseldorf have grown over the last 35 years to match the development of
the Corrugated Group’s business. In the past,
the demand was for end products, but today
it is almost solely for pre-material. Cold rolled narrow strip gave way to hot rolled wide strip, and the latest example is the freshly installed hot-rolling mill in which the Patels have been producing their reinforcing steel from billet pre-material since January. Patricia Schmied explains, “Although this means a reduction in the individual proceeds, the rising quantity
more than makes up for it.” When asked about the economic prospects in his sector in Kenya, Managing Director Suraj Patel is restrained. “In the steel industry, we also have to struggle with the growing import pressure from China.” In Kenya, the company has a good reputation as an employer and important taxpayer, but the Patels are also irreplaceable as benefactors.
In the small town of Mtwapa, around 30 kilometers north of Mombasa, they have set up a boarding school for individuals with disabilities that they support with 75,000 euros each month, in keeping with the motto by which many eco- nomically successful Indians live. “ e rst third of life is for learning, the second is for earning money, and the third is for doing good.”
“Africa is pure
adventure”
About a fascinating and challenging continent
Albrecht Theobald has been the face of SMID in Africa for 40 years
At the end of 1975, the management of what at that time was called Salzgit- ter Stahl GmbH Export decided to turn towards Africa. Armin Luther
took over the direction of the new department. An oil boom in Nigeria made that country
a good choice. e group had been participat-
ing in the warehousing company “Nigerian Commercial and Industrial Enterprise (NCIE)” there for years. Following positive experience, the activities were expanded to other African countries. e client structure is surprisingly multinational, particularly in sub-Saharan Africa. In addition to the indigenous popula- tion, Chinese, Indian and Lebanese owners can also frequently be found. From the beginning, Salzgitter concentrated on large customers in private industry who import large volumes of rolled steel products. It was important to deal with almost the entire range.
Patience and endurance play an important role in day-to-day business. For example, con- tact attempts o en take years to awaken interest in working together. Furthermore, additional services extending beyond steel deliveries are expected in Africa. But patience has paid o : Key accounts, such as the Wempco Group in Nigeria or the Patel Group in Kenya, still re- main closely bound to Salzgitter today.
e customers prefer fast and direct decision paths, which is they are served directly from Düsseldorf. Today Salzgitter ranks among the leading exporters of steel to Africa. e original sales of 10 t a year have multiplied to roughly
1 million steel tonnes today. We also supply additional products such as clinker, industrial plants, etc. e average annual sales for recent years total approximately 600 million euros.
On the grounds of a former chicken farm
e rst generation of the Patel family, includ- ing two young brothers, emigrated from the Indian state of Gujarat to Mombasa in Kenya in 1958. Initially they worked in an uncle’s household supply store, but then they started their own business, Venus Metal, and worked as project developers and building contractors. In the early 1970s, the Patels ultimately found- ed the Corrugated Group on the grounds of a former chicken farm. Today, 26-year-old Suraj Patel is the fourth generation to head the rm.
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