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Franke wrapped up its first acquisition in South Africa by acquiring City Metal Products (CMP), which previously belonged to Boumat Ltd., Franke acquired the leading manufacturer and distributor of sinks and sanitary products in South Africa. Over the last two decades CMP managed not only to consolidate its position as a market leader through local acquisitions, but also to adjust successfully to the economic changes in South Africa. In previous years the company invested intensively in new production technologies and launched new products for the export market. Franke intends to build up its market presence on the African continent with its new acquisition. As a new member of the Franke Group, CMP was renamed Franke Kitchen Systems (Pty) Ltd., t/a Citimetal.
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 The new Franke company, which was a small manufacturer of sinks, was taken over in 1956 by a Durban-based company founded in 1914 by S. Moodaliyar, a metal dealer, and registered under the name City Metal Products (Pty) Ltd. CMP became the main suppliers to Boumat, the largest wholesale dealer in sanitary units. In 1982 Boumat was able to buy 80% of the shares in CMP from the Moodaliyar family; in 1988 it bought the remaining 20%. Thanks to the new management and the high demands made of a public company, CMP was able to expand through acquisitions even in difficult economic times. Now their many marketing activities are beginning to bear fruit and the"Citimetal" trade name has become synonymous with sinks and sanitary products in South Africa. |
When the new government opened up the economy in the early 90s, CMP developed a new growth strategy aimed at freeing itself from the restrictions of small local markets and looking at other markets selling similar products. In addition, it pushed through a programme of investment over a period of four years, which reached its high point in 1998 with the introduction of the new Softline inset sink range (curvline), produced with the help of mono-bloc press technology. This enabled the firm to considerably increase capacity in sink production and today more than 70% of this added capacity is exported to Australia, New Zealand, to the islands of the Indian Ocean and to the other countries in Africa. Gerhard Kotzee, Managing Director of CMP since 1993 and now Franke's MD, sees in this acquisition new growth opportunities which need to be grasped quickly. The company will continue to create challenges to all its employees in its quest to live up to the shopfloor created slogan: "Shaping stainless for a bright future". |
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