The Chemical Specialities Limited group (“ChemSpec”) is one of Africa’s largest paint and coatings companies and manufactures a wide range of high-technology automotive, industrial and decorative paints and related products.
ChemSpec retails its products through its House of Paint stores. There are 30 House of Paint retail outlets, of which six are franchised stores, located in South Africa, Botswana and Namibia. The House of Paint stores cater for two distinct markets: professional users and contractors who buy ChemSpec’s automotive or industrial ranges, and general consumers who benefit from the company’s exceptional pricing of its decorative paint and accessories. The company is in the process of expanding its retail presence in Africa through the development of a solid franchising model.
ChemSpec has received numerous business awards, including three Business Report Sustainable Growth Awards. ChemSpec came first in the private category in 2002 and 2003 and second in 2004 out of 200 private company applications. In addition, ChemSpec was voted IMM Marketing Organisation of the Year in 2002.
ChemSpec listed on the JSE AltX on 6 November 2007 as a strategic step that will allow the company to fulfil its vision of becoming a leading global paint company.
The past three years have been pivotal for the ChemSpec group. The company underwent a management buyout in January 2006 which resulted in the introduction of a strong BEE component to the ownership of the business. One of the company’s core beliefs is that true empowerment comes from growth. The company’s focus on growing and empowering its staff will result in previously disadvantaged people entering the mainstream economy and thereby adding to it.
Environmental responsibility is also a key area of focus for ChemSpec and the combined efforts of ChemSpec’s research and development teams, locally and in the USA, have enabled the company to confidently develop environmentally friendly products.
The key to ChemSpec’s success is a passion for innovation, a culture of accountability and a consistent channel of open communication. Competing with some of the largest chemical companies in the world, ChemSpec prides itself in the fact that its ranges feature more innovative use of the latest technologies, thereby positioning its products as a best choice. COMPANY STRATEGY
The key elements of ChemSpec’s strategy are as follows:
Maximise profitability of established businesses In all the markets in which it has established operation, ChemSpec intends to continue its ongoing business optimisation programmes, including maintaining and increasing utilisation where possible and focussing on the improvement of key business drivers with the goal of maximising profitability.
Improve market position ChemSpec aims to be the market leader in the markets in which it operates. ChemSpec continually seeks opportunities to further strengthen its position in its key markets and believes that it is well-positioned to benefit from further industry consolidation in Southern Africa.
Expand existing businesses into new geographies ChemSpec looks to penetrate new geographic markets where it believes it can achieve a leading position. ChemSpec’s expansion strategy is to identify countries with favourable economies and end-user markets, which should allow ChemSpec to leverage off its existing infrastructure.
Using the South African market as a stable base, the ChemSpec group has a well thought through export strategy and the company’s high-technology automotive paint systems are highly successful internationally.
With an estimated value of US$150 billion, ChemSpec sees the international opportunity as an opportunity to add more value to the group and to secure revenue in foreign currencies.
Lower research and development costs, coupled with fast turnaround times and innovative use of the latest global technology, have enabled ChemSpec to produce a range of products that is extremely competitive on the global stage.
Strategic expansion into key markets has been facilitated by the opening of ChemSpec divisions in Australia and the USA, as well as the appointment of several key distribution partners in other countries.
Namibia
