Despite the economic downturn and uncertainty in several key markets, there is an air of optimism at EagleBurgmann, a leader in the manufacture of mechanical seals. Manufacturing Digital learns more
Written by Ian Armitage & Produced by Tom Lloyd
EagleBurgmann Seals South Africa was founded in 1982 as a subsidiary of German powerhouse Burgmann Industries GmbH & Co. KG. It has since succeeded in firmly establishing itself in the market and currently employs a staff of 110 people.
“We were originally founded as a distributor of Burgmann products in South Africa, but have grown to become a leader in the manufacture of mechanical seals, seal supply systems, magnetic couplings, stuffing box packings, static seats and expansion joints in the country,” says Managing Director, Paul van Wyk.
“We have several branches across South Africa in places like , Johannesburg, Richards Bay, Durban, Port Elizabeth, Cape Town, Sasolburg, Secunda and Mpumalanga. We produce locally and also provide a repair and refurbishing service for all seals we sell.”
EagleBurgmann has a growing presence in neighbouring Sub-Saharan countries too. “We have appointed agents in Namibia, Botswana, Zambia, Zimbabwe, the DRC, Gabon, Kenya, Uganda, Tanzania and West Africa,” says van Wyk. “We have a growing Sub-Saharan presence and that is something we will be developing in the future as we seek out new business opportunities.”
LOCAL DOMINANCE
There really is nothing like EagleBurgmann in South Africa and it is, perhaps unsurprisingly, continuing to make huge strides in the local market, despite the economic downturn. “Part of the reason for that is that we have such a broad product range,” says van Wyk. “We offer a complete line of products from standard, off-theshelf items to highly sophisticated engineered systems – that really sets us apart from the rest.”
It is enjoying particular success in the slurry industry, where the company has developed a number of products and slurry sealing solutions that cut maintenance down-time. “Traditionally, mechanical seals have performed very poorly in the slurry market,” says van Wyk. “But one of our biggest developments, Diamond seal Faces, which can be used in the slurry industry, is changing that perception. That innovation was developed by us and is a world first.
“What is so good about it?” he adds “Well, the number one cause of failure in mechanical seals is when it operates without any lubrication. This is known as dry running conditions. Diamond seal Face technology can increase the service life of mechanical seals many times over for a large number of applications because of the excellent wear protection it provides where dry-running, mixed friction or abrasive media are concerned. It significantly extends maintenance intervals and improves failure rates.”
Although the technology is in its infancy – it was launched 12 months ago - there are numerous examples that outline the performance of seals that use this technology. One such project was in the brewing industry in South Africa where the life of a seal was increased from one week to seven months. “Previously the seal would fail due to dry running when a vessel was purged,” says van Wyk. The Diamond seal Face technology helped overcome the short dry running periods and increased the seal life significantly.
“The DiamondFaces mechanical seal is a testimony to our relentless efforts to develop unique sealing solutions that ‘add-value’ whether that be through eliminating equipment failure due to improper maintenance or by extending the life of the seal,” adds van Wyk, who added that it is EagleBurgmann’s goal to minimise the lifecycle costs for users.
“Significantly DiamondFaces has made an impact in the oil and gas industry, one of the largest users of mechanical seals. The market potential is vast, but we are all about targeting the right customers with the right synergies,” van Wyk adds.
“We have proven advantages and we are marketing this technology extensively.”
EagleBurgmann is now seeking out customers in mining and slurry industries and expects great things from this technology.
TARGETING NEW OPPORTUNITIES
Things are clearly going fairly well for EagleBurgmann at the moment. A lot of that is down to the company’s focus on adding value. It is not interested in simply providing a product; it wants to improve the lifecycle of a mechanical seal.
“That is undoubtedly playing a role,” says van Wyk. “I guess another reason why we are doing relatively well in the downturn is that we are spread across many industries. We are active in the chemical market, the petrochemical market, the mining industry, pulp and paper, beverage and power generation, so we have a wide spread across a wide range of industries.”
Although EagleBurgmann is well-spread, many of those industries, particularly the automotive and pulp and paper, have been hit hard by the recession. “We have followed the global trends and those have been the worst hit,” says van Wyk. “But we have been able to soften the blow by performing well in other markets, like beverages. We are doing well there and we are fairly strong in petrochemical too. Those have helped to buffer setbacks in other industries.”
He adds: “It is important to note that we don’t delve into all markets; we are not general traders in mechanical seals. We target specific markets where we and customers are suited and can add value and where there are synergies.”
The markets currently being targeted are West Africa and oil exploration and refinery, as well as mining. “We have been fortunate that we have weathered the storm of the economic crisis and it is because of that spread we have in all the different industries,” says van Wyk. “We have actually grown our business since 2008, which I don’t think many competitors have, globally. But, to offer a word of caution, we have seen a slow down in the number of available projects, specifically in the mining and that is starting to take an effect now. I’m pretty sure it will carry on to next year.
“These projects are usually long term so it is a big blow,” explains van Wyk. “The problem is that there are very few companies in South Africa that can finance or capitalise their own projects. The large mining houses in particular relying on international funding and a number of those projects have been put on hold.”
As a result, EagleBurgmann is focused on managing stock and reducing debts. To do that customer focus is required. “The better we understand customers, the better able we are to manage our stock locally to provide the right service when they need it while reducing cost,” says van Wyk. “We are putting a lot of emphasis at the moment on business processes and making sure that the processes are as slick as they can be, not only to make sure we are efficient as an organisation and don’t waste money unnecessarily, but to make sure that when the economy turns we are better able to service our customers and can add value for them in the future.”
Van Wyk has been with the company for 12 years – serving as Managing Director for the last two - and is excited by the future. He sees a number of opportunities in several markets, across several countries, and, he says, as long as EagleBurgmann remains “innovative” it will be able to tap into a number of those.
“Of course, there is one other major trend that is impacting all of our businesses - the global movement to environmental awareness. This is good for us too,” says van Wyk. “Our products increase efficiency and have obvious energy conservation benefits. As South Africa and the African continent embrace this, there will be a lot of opportunity.”
FACTS AT A GLANCE
Company Name: EagleBurgmann Seals South Africa
CEO : Paul van Wyk
Operations: Leading manufacturer of mechanical seals
Established: 1982
Employees: 110
Revenue: 570.3 million euros
www.eagleburgmann.com