Large Specialised Manufacturing & Fabrication Business For Sale

Business description

This business manufactures Specialised Engineering Products and Components and specialised Materials Handling Equipment for a variety of industry sectors. The bulk of the engineering products are supplied to the Catalytic Conterter Industry, which manufactures products for both local and export consumption. The materials handling equipment is supplied to a number of different industry sectors.

A large focus of this business is on contract type supply agreement manufacturing, which ensures long production runs and guaranteed work into the future.

This business prides its self on providing world class, high quality and cost effective services and products to its clients. The business has an excellent reputation over the last 10 years, and has established its self as a preferred supplier in most sectors in which it operates.

With an SABS ISO 9001:2000 quality management system in place, customers are assured of peace of mind and continuous improvement efforts in all aspects of the business.

The business has built a solid reputation of being a reliable, cost effecive and high quality supplier, and is able to provide service offerings in other engineering disciplines apart from the two main focus areas of Engineering Components and Materials Handling Equipment. This ensures that the business is in a position to supplement its revenues during quiet times, and has ensured that the business has a product mix which is not overly reliant on one industry sector. Expertise in Jigs & Fixtures, Production Welding, Production Pressed Components, Conveyors, Ducting, Sheet Metal Work and Structural Steelwork also exists.

Property information

Real Estate:

Lease

Lease terms:

Favourable lease with very established landlord, with an option to renew.

Leasehold rent:

R505,000 per annum

Location:

The business is well located in a Light Industrial area, within easy reach of its major customers.

Premises details:

Approximately 3000 square metres under roof.

Other information

Expansion potential:

The business has a large degree of underutilised capacity in respect of volume production press equipment as well as specialised bearing refurbisment equipment. Significant opportunity exists to grow sales by increasing the utilisation of these assets. The business currently has no full time sales personnel, and all sales and quotation activities are handled by the owners.

Support & training:

Support and training will be provided to the new owner

Trading hours:

Monday to Friday, 07h00 till 17h00

Furniture / Fixtures value:

R2,600,000 (included in the asking price)

Inventory / Stock value:

R400,000