Tank containers are export gold-mine The sudden closure by a major motor manufacturer of its PE operation forced Welfit Oddy to diversify 11 years ago ... and they have never looked back. Terry Hutson charts their success.
When the company first got started all new tank containers were shipped out to their owners empty. With the lifting of sanctions much of this changed and SA wine is now just one example of the new users. WHEN A major motor manufacturer announced without prior warning to anyone that it was closing its operation in Port Elizabeth, shock waves were felt throughout the Eastern Cape.
Not the least of those companies to be affected by this move was Welfit Oddy, a 104-year old Port Elizabeth manufacturer of vehicle bodies which was almost entirely reliant on the motor industry. The year was 1985 and to make matters worse, South Africa was already in the midst of a mini-depression as numerous multi-national companies quit the country.
In retrospect, says Welfit Oddy's tank division director Edward Kew, it turned out to be a blessing in disguise. We were forced to look at other areas, and we elected to go into the manufacture of ISO stainless steel tank containers for export. In their first year (1986) of manufacturing tank containers Welfit Oddy produced about R3-million of product. In the following year they exhibited for the first time in Germany and took second prize, and haven't looked back since.
That same year they produced and sold more than three times the value of expected sales to the departed motor company. Today Welfit Oddy produces over R200-million worth of tank containers each year, mainly for overseas clients, and is regarded as one of the world's leading manufacturers.
It is not so well known that South Africa produces about 40% of all new tank containers, such is the high regard for local quality, and this figure is growing.
Kew notes a growth in intermodalism, especially in the United States. Previously, he says, everything went by road tanker, but in recent years there has been a switch to tank containers on the railroads, with strong inter-relating between road and rail operators. He sees a lot of potential especially in the Pacific Rim.
When the company first got started all new tank containers were shipped out to their owners empty. With the lifting of sanctions much of this changed and SA wine is now just one example of the new users. Wine is now exported in bulk in tank containers and bottled overseas, with the result that new containers go out full instead of empty. Just another reason to buy South African, says Kew. Build and fill! Tank containers can be used for almost all liquids, and are thoroughly cleaned after each usage.
A subsidiary business for Welfit Oddy is refurbishing older tanks, which involves stripping down, recladding and repainting. The company works to stringent ISO9000 standards and was the first such manufacturer to be accredited.
And yes, Welfit Oddy still builds bins and body parts for motor manufacturers. The company has been around since 1892 when the first Welfit Oddy arrived from England and set up shop as a wagon builder. Today the company remains a family business and there is still a Welfit Oddy at the helm. And the name Oddy's Bodies continues to be a familiar sight on the back of lorries.
