Murray & Roberts, which has a significant presence in the South African steel industry  -  consuming or converting one million tons of steel annually  -  is engaged in the rationalisation and consolidation of previously disparate steel activities into one entity, Murray & Roberts Steel.

The aim is to leverage greater buying power in steel and deliver better performance by grouping together all of the operations that have in common the conversion of primary steel into finished products for construction, mining and industrial markets.

During the 1980s, Murray & Roberts acquired the steel operations of Reinforcing Steel Contractors (RSC) which supplies rebar and roof supports to the construction and mining industry. The Cisco steel mill in Cape Town was added to the group in the 1990s.

Companies now consolidated into the steel grouping to create a critical mass, including Genrec, a multi-disciplinary engineering and construction operation involving structural steel fabrication; Hall Longmore, a leading manufacturer of welded steel pipes; and Harvey Roofing Products, which manufactures steel roofing products.

Almost a year into the restructure, the back offices of each of the steel operations have merged in a relatively smooth process. Human resource, internal audit, financial accounting, information technology, procurement, as well as health, safety and environmental activities all operate as one, resulting in improved efficiency and savings.

Management teams have not yet been significantly impacted by the process. But this is about to change as phase two of the restructure will require a complete shift in behaviour..

Branding

An important component of the transformation has been the application of the Murray & Roberts single brand strategy. The steel group is now clearly branded Murray & Roberts, but to ensure that the goodwill associated with long-standing product brands such at Harveytile and Hall Longmore is maintained, these brands have been retained within the framework of the primary Murray & Roberts brand. 

Internationally, Murray & Roberts acts as an exclusive agent for Iscor to sell its rebar into world markets and also conducts business in its own capacity.

Steel exports have become an important part of Murray & Roberts activities, doubling in volume last year. This has enhanced Murray & Roberts leverage in procurement and increased Murray & Roberts exposure to international markets.

With a new structure in place, Murray & Roberts Steel is well positioned to grow its business organically and by acquisition – in South African and internationally