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CAPITAL EQUIPMENT NEWS
FEBRUARY 2017
36
O
n July 1 2016, a con-
sortium of investors
acquired the business
of Stampede Compac-
tion Equipment, the
only South African designer and manufactur-
er of light to medium compaction equipment
in its class of walk-behind and ride-on roll-
ers. The transaction saw a critical injection
of working capital into the business, in line
with Stampede’s strategy to aggressively
expand both its manufacturing capacity and
footprint in South Africa and sub-Saharan
Africa at large.
“A consortium of investors has injected
additional working capital into the business
to fast-track manufacturing and product
enhancements – projects which were already
on course,” says Marco Capazario, sales &
marketing director at Stampede. “This needed
a substantial amount of working capital. Seven
months into the deal, we have been able to
make the factory a lot more competitive, both
in terms of quality and volume.”
Key improvements
The capital investment has been spread
across several functions of Stampede’s
business. The first and key project was the
expansion of the Isando, Johannesburg
manufacturing facility, allowing the company
to increase production volumes. “The
production expansion has doubled our output
capacity in a short space of time and enabled
us to target a 30 to 40% share of the markets
we play in over time,” says Capazario.
Additionally, a portion of the capital
injection went into information technology
(IT) and systems efficiency, which he believes
is a key enabler in improving both quality
and production capacity. “Optimisation of
supply chain and improved production line
efficiencies is key to ensuring we remain a
low cost producer of quality products,” says
Capazario.
There was also investment into both
people and related training. This entailed
bringing in trained skills sets on hydraulics,
diesel mechanics and people with relevant
experience in the compaction industry. To
date, the company has added about eight
key personnel to its complement of 60
employees.
“We have also managed to upskill our
people, putting them through formal training
Following a sizeable capital injection, Stampede Compaction Equipment,
South Africa’s only designer and manufacturer of light to medium compaction
equipment, has expanded its manufacturing capability and is ready to increase
its footprint to roll out its range of locally-made walk-behind and ride-on
rollers into the rest of Africa, and even beyond, writes
Munesu Shoko.
COMPACTING MORE VOLUMES
INTO AFRICA
The capital investment has allowed
Stampede to expand its Isando,
Johannesburg manufacturing facility to
increase production volumes.
BUSINESS: ROAD MAKING EQUIPMENT