Mecwide is a metal works company with engineering, purchasing, and EPC activities on the side. Our main focus is metal construction in large dimensions for the mining, cement, and oil and gas sectors. We produce oil and gas tanks including air tanks and superficial and underground tanks, both double and single facing. In the mining and cement industries, we produce conveyors for materials and silos. From the start of our activities, we understood the importance of vertical integration; therefore, we provide a range of services from assembly to validations and support activities. Since acquiring the original company in 2015, Mecwide has set up a new facility and started expanding in Mozambique. Some of our main clients are Siemens, Vale, Mozal, and Galp. In 2020, we are looking to sign contracts with major LNG operators; we have already bid for 10 projects. Key to ensuring these contracts is establishing a strong local presence, which we have had for over 10 years, and an international profile able to correspond to the contractors' demands. We expect to open a facility in Cabo Delgado, most probably in Palma, at the beginning of 2H2020. Through certain programs, we are hiring experienced personnel from local universities and training them. Beside LNG, we want to serve the energy sector in the central provinces as well as smaller projects financed by international donors. Mozambique is ripe with opportunities, which is why it is essential to assert a presence in different locations.
Feb. 2, 2021
Above all, Mozambique's industrial parks and free trade zones offer the best strategic location for companies looking to enter regional markets.
Country Manager, Mecwide Mozambique
CEO, Capital Star Steel
Just short of 35,000sqm, we are the largest steel pipe factory in Africa and the single-largest undercover facility in Mozambique. We manufacture steel pipe for the oil and gas, water, and industrial markets. The manufacturing process is electrical resistance welded (ERW)/high frequency induction (HFI), and we produce pipe in the size range 200NB to 600NB. The business was originally set up in 2009 between South African construction company WBHO and Chinese steel manufacturer 7 Star, with the aim of bringing steel quilt in from China, having it manufactured in the free trade zone, and then shipping it to both the African and American markets. This plant is designed to produce 200,000 tons of steel pipe a year. The American market imports some 800,000 tons a month, providing an incredible opportunity. We have recently invested in a hot-dip galvanizing plant that will enable us to protect steel from corrosion. We recently acquired the plant and are in the process of having it installed and going online by August 2020. This investment will be a catalyst for the industrialization of the country. The majority of the steel structure required for the LNG will also be galvanized. The volume is so big that one cannot buy it all in Mozambique; however, this facility will allow oil companies to start giving business to the local industry. With a strong commitment to supporting the domestic industry by all the major players, many investors would target Mozambique as a preferred investment destination.
General Director, Beluluane Industrial Park and Free Trade Zone
Beluluane Industrial Park is a PPP between the Mozambican Government Agency for Investments and Export Promotion (APIEX), which retains 40% of shares, and Mozambican and Swiss investors from the private sector. The park was established in 2000, and its main objective is to develop an industrial area in a free trade zone regime, focused on exports, as well as a regular business area for local businesses. Companies in the free trade zone need to be transformative industries that export at least 70% of their production. The park has an area of 700ha, and so far, we have completed Phase I, which currently has 40 enterprises from 15 countries. We have a dry port project to facilitate road traffic for industries and people. Our location is strategic, as we are situated just off the road connecting Maputo to South Africa. We want to create a mechanism to bring trucks that come from South Africa to our dry port. All the goods will then be redirected to Matola Port or Maputo through the train line, which will prevent road congestion and reduce pollution. On the energy side, in August 2019, the Council of Ministers approved a USD2.8-billion gas power station that will produce 2,000MW. Between Mozal's energy needs and the new industries that will open in the park in Phase II-V, there will be enough demand for energy. Besides, any excess will be sold to neighboring countries, especially South Africa. We also plan to build a 7-km pipeline to transport gas from Matola Port to the industrial park to feed the thermal power station.
Manuel de Morais
Managing Director, Dendustri Technical
Dendustri Technical was formed in 2008 under the request of Mozal. From the start, the core of our services has been repairing and maintenance of the energy stems of Mozal. For over a decade, Mozal has been our core business, but the aluminum market is extremely volatile, and as a result, the company is looking for savings, which puts pressure on us to cut operational costs. At all times, our aim is to ensure that the quality of our product is up to standards and that our pricing is correct and competitive. At the same time, Dendustri Technical has expanded its business with Mozal with two more contracts and diversified its portfolio of contracts. In 2015, we added a fully equipped CNC machine shop—one of the most advanced in Mozambique—to offer extended services to our new clients. In 2019, Dendustri Technical was sold to a new group of investors from South Africa and Mauritius, who retain 85% of the ownership. The remaining 15% is owned by the local partner. We have some new plans for 2020. We recently established a new company called Dendustri Engineering. We are currently investing in equipment and facilities. We want to tackle all the sectors with opportunities for growth, from oil and gas to mining and agriculture. We are also interested in expanding our business to Pemba in order to capture the opportunities created by the LNG and mining industries in the north of the country.
Jacinto Sabino Mutemba
Chairman & CEO, Belutécnica SA
Belutécnica is a 100% Mozambican owned and run company, operating from Beluluane Industrial Park. We started operations in 2013, but our experience draws back to 1996 when we bought a state-owned steelwork company, AGRO ALFA. Belutécnica was established after the restructuring of that company, which was looking at ways out of the global financial crisis that hit Mozambique around 2011. We started in a small warehouse in 2013 inside Beluluane Industrial Park. Since then, we have grown substantially. We are now looking to move into a brand-new, high-capacity steelwork plant—our biggest investment to date. I firmly believe that our growth is directly related to the profound commitment of our people to develop, acquire knowledge, and strive for results. It is not by accident that 90% of our shareholder capital is held by managers and technicians in the company, and this is how we want our business to grow, not just by adding competent employees, but also adding people who see the company as their home. We work with global companies, exclusively on a contract basis. In 2017, we put in place a seven-year business plan, which we are now planning to turn into a 10-year plan, articulated along four main lines of business: metal and mechanical fabrication, mechanical maintenance of the aluminum smelters, construction maintenance in oil and gas, and refractory services. We have diversified our portfolio of activities throughout the country, capturing opportunities where they arise and taking risks when they are worth it.
CEO, Midal Cables International
Our decision to enter Mozambique was in response to our desire to extend our presence in Southern African Development Community (SADC) markets. As an aluminum downstream producer, the primary reason for entering Mozambique was to be strategically located close to the Mozal smelter, one of the biggest in the region with a high-quality product. We set up our plants close to Mozal, in Beluluane Industrial Park, from which we convert metal into aluminum rods and then produce overhead transmission cables. Compared to South Africa, Mozambique was interesting because, as a developing country, it offers a great deal of potential commercial opportunities in the making. In terms of the workforce, we have been pleasantly satisfied with our investment in Mozambique. We have found a dedicated workforce that is open to learning. YoY, we are increasing our percentage of local workforce, which now stands at 87%. We have two main product lines for exports: wire rod, which is the basic raw material for cable producers; and overhead conductors. South Africa represents a strong market for wire rods. We mainly serve these exports through road transportation and are extremely satisfied with the road network. The other big market is Europe, which represents 55% of our sales. 2020 will be a tough year because of COVID-19. We have started to see a small turnaround, but most markets have still not opened completely. Thus, our strategy for 2020 is simply to minimize our losses. Moving forward, we want to gradually increase our conductor business.