Western Cape Business News

Send  Share  RSS  Twitter  22 Jul 2010

BUILDING: KwikBuild Now Has Preferred Status


Recent Western Cape Business News

CAPE-based KwikBuild, started eight years ago to supply the very competitive prefabricated building sector. The company has since achieved a preferred supplier status in a number of provinces including the Western Cape.

Last month it announced that it has won R28.5 million of new business when the company was awarded two large tenders to develop the Cape Town Station Traders Mall and to build a 700 pupil school near Port Elizabeth.

The company was requested by Intersite to provide a fast track interim solution for 150 of the Cape Town Station traders. This was to be completed in time for the traders to benefit from the additional through traffic generated by the Soccer World Cup. These units were completed on the station deck within four weeks of the placement of the order. After the World Cup work is to commence on the 386 new shopping units ranging in size from four to 20 sq m as well as administration and ablution facilities. The total new build is in the order of 3 000 sq m.

The Department of Public Works, Eastern Cape acting for the Dept. of Education has awarded the contract to KwikBuild for the development of a primary school on the outskirts of Port Elizabeth. The school will include 23 classrooms, an administration building and two ablution blocks.

The increased fortunes of KwikBuild follow on the recent announcement that Lonrho Plc has bumped its stake in the Holding company (KwikBuild Corporation) to more than 70%. Another important contributing factor may be that some 31% of the local company’s shares are held by Black Women, giving it a Level One BBBEE status.

Jon Buxton, the managing director of the company, who is also one of the founders, says Lonrho has a vision to expand the supply building infrastructure throughout Africa, growing KwikBuild into R400 million annual turnover in five years time. “They are willing to provide the necessary financial support to help us to achieve this goal,” Buxton says.

It currently has an order book of more than R57 million, of which the bulk must be completed in the next three months, according to Buxton.

The company has its head office and a logistics warehouse in Cape Town. It’s manufacturing facility was established in Port Elizabeth in 2008. This facility is capable of producing 220 panels in a single shift, which is the equivalent of five classrooms per day. It currently employs 45 permanent staff and utilises 12 subcontractor teams to erect the buildings. “We are currently supplying various types of classrooms to the departments of education in the Western Cape, Eastern Cape, Northern Cape, Kwa-Zulu Natal, Mpumalanga and Free State Provinces. We have also supplied office buildings to Eskom in the Western and Eastern Cape provinces.”

We have also supplied offices and accommodation units to Angola and Equatorial Guinea. These were purchased by some of the major oil companies operating in these countries. We are actively looking to expand into other countries in Africa through the auspices of Lonrho,” Buxton says.

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