Western Cape Business News

Send  Share  RSS  Twitter  16 Apr 2009

MARINE: DCD-Dorbyl Acquires Globe Engineering


Recent Western Cape Business News

DCD-DORBYL Marine has acquired the business interests of Globe Engineering Works effective 1 April 2009.

A press release says DCD-DORBYL Marine has a history that spans more than 100 years on the South African seaboard. Globe Engineering Works has a similar track record in the Western Cape with a reputation for high quality engineering in the oil and gas markets.

Because we each owned a 50% shareholding in Nautilus Marine – a painting, blasting, corrosion protection and tank cleaning company – there was a pre-existing relationship between Globe and ourselves,” Johann Venter, executive director at DCD-DORBYL says. “We decided to further extend this relationship by purchasing Globe Engineering. This effectively means that we now own 100% of both Globe Engineering and Nautilus Marine.”

Both DCD-DORBYL Marine and Globe Engineering are situated in close proximity in the Port of Cape Town.

The Western Cape has a vision of becoming the preferred destination to the West African oil and gas sector whereby it will serve as a world class service hub for vessel owners and operators. “This could only be achieved by putting DCD-DORBYL and Globe together to create a strong, streamlined, viable entity with the required infrastructure and financial muscle to invest in modern infrastructure and skills to comply with the high standards required by the offshore oil and gas companies. Neither Globe Engineering nor DCD-DORBYL Marine could have done this on their own,” Venter says.

Majority of our customer base is international: so this acquisition should be seen in the light of an export business. Our customers compare Cape Town to other yards in the world, including Walvis Bay and the increasing competition from other ports in the rest of Western Africa. Given this scenario one can understand the need to offer superior service excellence to stay competitive, especially in the current global financial situation,” Venter adds.

According to Venter this new entity will certainly attract the larger projects which will give work to the wider Cape Town industry and ensure the viability of its suppliers by offering a full spectrum of capabilities.

The DCD-DORBYL Marine/Globe combination is taking the lead to achieve this vision for Cape Town, and more importantly to preserve and create jobs. We are pleased to report that our Labour Unions supported the merger. This is a good example of industry and labour working together to create jobs," Venter says.

DCD-DORBYL Marine is not only a major engineering and fabrication concern in the Western Cape, but is also the only such medium and heavy engineering facility in the Western Cape offering a full turnkey facility. The facilities have 50 ton overhead cranage suitable to handle the heavy components and structures required for such projects and the height under hook of 11.5 metres including the ability to fabricate girders up to 60 metres in length undercover.

The company is the only shipyard in southern Africa to boast a fully accredited Lloyds ISO 9001:2000 quality system. It was also the first shipyard in southern Africa to receive an official JH143 Shipyard Risk Assessment by the Salvage Association. The company continues to ensure that it is compliant with international environmental norms and standards, and is currently in the process of obtaining OHSAS 18001 certification.

Venter explains that each company will continue to operate from its current premises and there will be a rationalisation and consolidation on the services side as far as HR and administration is concerned. “We will be creating a more efficient operation by merging our capabilities and resources which will result in us becoming more competitive in our elected market arenas, with increasing focus directed towards the oil and gas sectors. This will naturally have a very positive effect on our core business of ship repairs and upgrades.”

Venter says that a number of the Globe Engineering personnel are currently embarking on supervisory training courses in the specialist fields of welding and boilermaking. “We are also targeting the areas of health and safety and bringing the Globe Engineering staff up to speed on current developments.

Our plans for the immediate future include major investments in capital equipment in terms of specialist on-site machine capacity; specialist valve testing equipment; and piping detail design, pre-manufacture and installation equipment,” Venter explains.

This new technology will ensure that we utilise our overheads more effectively, which in turn means that we will have a wider product offering to present to the market,” Venter concludes.

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