Healthy growth for Marel in a challenging market

April 2013

Playing on its strengths by reaping the benefits of integration and a global network of sales and service, Marel showed solid revenue growth over the past year. In particular, local subsidiary Marel SA has seen growth of 20%. This is especially impressive in the context of the global organisation’s results, which report revenue growth of 6.8%.

Theo Hoen, CEO of Marel states “A healthy 6.8% growth in a challenging market is an achievement. In the last four years we have grown immensely. We have introduced a steady pipeline of new products, strengthened our sales and service network, and at the same time we have merged several companies into one.

Last year we saw strong growth in our fish segment and in fourth quarter we saw signs of a turn-around in the meat industry. We maintained our position as market leader in further processing, and the poultry segment remained the backbone of our revenue base with returns above target.”

A leading provider of advanced equipment, integrated solutions, software systems and other services to the fish, meat and poultry industries, Marel is well known and respected in the food processing arena. The organisation prides itself on providing its customers with a one-stop solution to all their processing needs. This ranges from standalone equipment to turnkey integrated processing lines and solutions.
According to Marel SA’s general manager, Rodney Macer-Wright, with the global merging of the Stork and Townsend brands under the Marel umbrella, the organisation in South Africa recently integrated the Marel, Stork and Townsend range into the local operation.

“All products and spares under these brands will now be sold and serviced directly by the local Marel offices in Johannesburg, Cape Town and Durban” he says.

Macer-Wright states that the service side of the business remains paramount to its success. After all, he explains, its clients are in the food processing industry, which means they have to be very demanding in regards to their equipment due to the challenges they face.

Challenges for food processors include rising costs, e.g. for feed, energy and water, the availability of labour and the ever growing demand for more and safer end products. Meeting those challenges is at the core of Marel’s business model. 2012 was challenging for processors in various markets, numerous projects, large and small were realised confirming Marel’s position as global technology and market leader.

He adds that the other reason for the company’s impressive growth is the regular innovations it introduces in terms of its equipment. Innovation is one of the cornerstones of Marel’s strategy. The Company invests 5 to 7% of revenues in innovation annually, and in 2012 Marel launched 57 new products and applied for a patent on 24 new inventions. By continuously bringing new products and solutions to customers, Marel contributes to improved profitability in the industry. Traceability, and energy and water savings are increasingly important drivers for food processors in addition to improved yield, automation and more efficient processes overall.

Marel’s goal is to provide its customers with solutions that give them the edge over their competitors. Good examples of innovation that bring value to Marel’s customers are the StreamLine solutions combined with Marel’s Innova production control software. The Marel StreamLine deboning and trimming system enables meat processors to monitor and collect data on yield, throughput and quality throughout the entire processing cycle. StreamLine can be configured for a variety of tasks, including deboning, trimming, membrane skinning, tying and sawing, allowing processors to cater fully to their customers’ specifications.
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“Our innovative developments in new capital equipment have certainly played a major role in continuing to increasing our sales. In addition, most of our customers are long-term clients with whom we work side-by-side to continually challenge, extend and re-define the boundaries of food processing performance,” states Macer-Wright.

 “While our sales volumes are not comparable to the Marel offices in the developed world, there is little doubt that in context, Marel SA is doing really well from a growth perspective. We are also starting to use South Africa as the springboard to take our equipment into the rest of Southern Africa. As for the next year, I expect us to achieve at least a 20% growth in comparison to our current figures. Marel SA continues to grow a confluence of good sales people, expert service technicians, innovative equipment and strong marketing, so I am confident we will continue go from strength to strength,” he concludes.

EDITOR'S NOTES     

Marel is the leading global provider of advanced equipment, systems and services to the fish, meat and poultry industries. With offices and subsidiaries in more than 30 countries and a global network of more than 100 agents and distributors, we work side-by-side with our customers to extend the boundaries of food processing performance.

'Advance with Marel'.

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Tara-Anne Yates
The Marketing Hub
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E-mail : marketing.za@marel.com