Beier Industries : 80 Not Out

Celebrating 80 years in business, Beier Industries isn’t in a reflective mood. In fact, it is looking forward, for new ways it can diversify and expand.

Pinetown-based Beier Industries (Pty) Ltd is something of a South African success story, to put it mildly. The third-generation company, which celebrates 80 years in business later this year, is not only one of the country’s oldest and most innovative industrialists, it is still enjoying growth.

“Our facility is based 15km from Durban; ’s industrial heartland,” says Hans Beier, the firm’s CEO. “We are a very diverse, innovative group, which is enjoying growth, even in the downturn. We operate three companies, in interrelated, but slightly different fields, called Beier Safety Footwear, Beier Albany and MacBean Beier Plastics.

“Let me explain more about what each does,” he adds. “Our footwear company - Beier Safety Footwear - manufacturers a range of safety shoes and boots, heat resistant footwear, police and military footwear and security and militarily canvas footwear; MacBean Beier Plastics - a manufacturer of coated fabrics - produces PVC/PU coated fabrics, PVC Tarpaulin fabrics and PVC fabrics for the automotive industry; and Albany produces technical textiles, specialised media and filtration products. It is a diverse offering.”

Formed in 1929, the Beier Group has grown from small beginnings. “It all started when my father O.T.H. Beier, a young pioneer, left Germany against the wishes of his family and established himself in Durban as a wool merchant,” says Hans. “He later received an offer to work with Storm and Company to manage their scouring plant, and accepted. He later bought that plant and we have never looked back.”

O.T.H, like his son and now his grandson, Wolfgang, recognised the vast potential for industrial development in and set off on a journey of diversification and expansion – a journey that leads us to today. “We continue that tradition of innovation, diversification and expansion,” Hans explains.

ALL SYSTEMS GO

Things are going pretty well for Beier Industries at the moment, as you would expect from such a diverse company. “When you have three cylinders, two usually fire quite well and the other hangs around a little bit,” says Hans. “For the last three or four years we have established a niche in the market and we tend to specialise and find niche markets rather than the run of the mill.

“When it comes to the footwear industry for instance, we are today the largest safety footwear manufacturer in the country and we think we are very innovative and that has kept us going,” he continues. “Most of our competitors are looking for work and we are running six days a week, 24 hours a day, and have order books right up until the end of October.

“For example, Albany supplies the big power utility companies here,” says Hans. “We have basically got all the filtration business from the South African electrical utility companies and then of course Sasol and some manganese companies as well. So that segment is doing superbly.”

The final division, MacBean Beier Plastics isn’t fairing so well, for the moment at least. The reason for that is that its main clients operate in the automotive industry – an industry hit hard by a global recession. “MacBean Beier Plastics was formed through the integration of Erez Thermoplastics of and Beier Industries and it is a joint venture capable of producing the widest and most diverse range of coated PVC products, serving the automotive industry mostly,” says Hans. “However, in keeping with our quest for growth and diversification, it also supplies the mining, transport and furniture industries worldwide.”

Superb technology and continuous product development are cornerstones of this division, much like the other Beier Group members. “Each segment produces quality products that consistently meet the demanding requirements of our customers,” Hans says.

He adds: “With the niche markets we are in, we are not affected as badly by the recession as some South Africans are. has been pretty lucky in comparison with the rest of the world, but it is now feeling the pinch the manufacturing industry has been hit pretty hard.

“We are still making profits though and think the future, as far as we are concerned, because of the niche markets we are in, is very good and we are heavily involved in export and we want to get more export,” Hans continues. “We want around 30 percent of our production to go into the export market starting from , , , , and all those countries and we are very heavily involved at the moment. I must say the export business has grown from zero three years ago to 12-13 percent now. But our aim is to get to 25-30 percent.”

He believes this target is both realistic and achievable. Why? Well the company, remember, has a history of innovation and a knack for developing products the market needs. “I think that is one of the reasons why we are still one of the firms in this area still running well and we haven’t had to retrench anybody at this stage,” says Hans. “We have been pretty lucky and we are an innovative company bringing out new products continuously and that has kept our heads above water.

“Moving forwards, the environmental market – demand for filtration in particular – is huge and we are excited by how that market will develop,” he adds. “In response to what we see as huge demand, we are looking to move upstream in that industry and become more than just a supplier.”

At 73, Hans has no plans to retire just yet and, although his son is controlling the firm, he is “glad to help out” for as long as he can. “There is great demand for all of our products in and the African continent, short- and long-term,” he explains. “We are a success because we put service and quality above all else, even price. Price is a factor, but we will not compromise on our principles.”