Hydraulic systems & components


Dosco GPM geared up for international expansion

Third Quarter 2004 Hydraulic systems & components

The name Dosco is well known to the readers of Motion Control and the hydraulic industry in general, but since its creation in 1989 the company has undergone radical expansion through acquisitions and investments in order to become a world-leading company in its field and this article is intended to bring the reader up to date with both national and international activities. Dosco of course not only has an enviable reputation for quality and service within South Africa but is also the largest exporter of hydraulic products in this country. Markets addressed include the mining and industrial industries as well as original equipment manufacturers.

The name of the company today is Dosco GPM Holdings (Dosco), which has several local operations under its control and two (soon to be three) international fully integrated companies. The company directly employs some 210 people, with technical staff having received comprehensive training, both locally and at the overseas principals. All of the manufacturing facilities are certified to ISO 9001:2000. Dosco GPM has Ken Barnard (one of the original company founders) as group managing director and Ray Moore as group financial director with Ray driving the establishment of the international operations.

The focus of the original Dosco business was the repair and remanufacture of hydraulic pumps and this company, renamed Dosco Precision Hydraulics (DPH) remains in Johannesburg with a branch in Middleburg. Supporting such international brand names as Commercial, Sundstrand/Sauer, Rexroth, Vickers and Kawasaki Staffa, DPH has established itself over the last 15 years as one of the most advanced hydraulic pump repair and remanufacturing facilities in the world. Its comprehensive stores hold critical parts for the hydraulic pump range covered and unusual components not in stock can be obtained from overseas in under seven days. DPH currently has a capacity to repair some 70 units per day.

To complement the activities of DPH, Dosco established Flow Technology Systems (FTS) in Johannesburg. With Dosco's years of expertise in the field the company was able to develop a unique test bench design and FTS presently operates six computerised test benches. Together these cover a range of 37 to 550 kW in terms of power and can test open and closed loop pumps at flow rates up to 1,25 kl/m. These test benches have proved so successful that FTS has been able to manufacture more of them locally for export throughout the world to companies that include several OEMs. These test benches are used for pumps, cylinders and valves.

The Johannesburg site (which has provision for expansion) now also incorporates its own engineering shop (Manufacturing Technology Systems) as a dramatic increase in machining work saw Dosco invest in its own facility under its own strict quality control. The establishment of MTS is seen as part of the continuous expansion of the company and allows significant improvement in the service provided to customers.

Local expansion of the company started during 1999 when it bought out the then Debex Cape Manufacturing plant in Cape Town, changing its name to Gear Pump Manufacturing (GPM). GPM produces gear pumps similar to the international Commercial range and has become the largest commercial replacement manufacturer outside of the USA. Despite complaints by other local companies about international competitiveness due to the rand strength, GPM currently exports more than 75% of its production. The company's product range includes hydraulic bushing pumps, bearing gear pumps, power take offs and some valves.

Since taking over this facility, Dosco GPM has invested significantly in it. In order to ensure the quality of the castings used for the pumps a new foundry was established which operates under the name of Engineering Technology Services (ETS). The equipment for the foundry was imported from the UK from a closed down facility and has been upgraded to become one of the best sand foundries in South Africa using high quality sand from the Cape region. With its environmental policy based on ISO 14001 ETS recycles most of this sand. The foundry enables Dosco to ensure the quality of the castings used by GPM and can produce up to 10 000 castings per month. Before the castings can be used they must undergo precision machining and as a result GPM has been equipped with numerous CNC machines. Over the last four years in fact more than R10 million has been invested in this facility to make it state-of-the-art and self-sufficient.

In terms of the company's commitment to investment in local human resources Dosco recently opened the Siyaphambili Development Centre in Midrand. This is a 800 m2 training facility than can accommodate some 50 people at a time and numerous PDIs have been coached in life and basic technical skills. Since the introduction of the programme Dosco itself has appointed eight graduates into its own staff complement.

The final company in the local structure is Wooster Properties - which owns the buildings and property in Johannesburg and Cape Town. It is about to undertake a major expansion of the Cape Town facility in anticipation of the increased export sales.

As the group has a significant share of the local market the decision was taken in the late 1990s to increase the export market through a physical presence in the main regions serviced. Management strongly believes that by being successful in the highly competitive export market it will be better able to defend and expand its local (and African) market. Using the name Gear Pump Distributors (GPD) the company opened its facility in Bromsgrove in the UK during 1999. The UK facility services the EU, Middle East and Mediterranean markets. Two years later a second operation was established in Sydney, Australia and will service the South East Asian and Australasian markets. During November this year the company is opening a further facility in the USA and they intend to compete strongly in that difficult marketplace. All of these international operations purchase complete pumps and units directly from GPM in the Cape and are fully self-sufficient having their own stores as well as repair and maintenance facilities for gear pumps.

The new GPD facility in North America is expected to grow rapidly and become by far the largest of the company's international operations. Predictions are that in order to accommodate the additional exports generated here Dosco should be able to employ almost 40 new people over the next 18 months.

Dosco GPM and its constituent companies participate in many international trade shows and fairs. On the current agenda is Electra Mining Africa in September, a trade show in Birmingham, England, during the same month, Conexpo in Las Vegas in March next year and of course a regular, namely the Hannover Fair in April 2005. As a global player the company also advertises regularly in both local and international publications.

Despite a huge international presence with exports to more than 37 countries throughout the world, Dosco is a registered 'Proudly South African' company and takes pride in displaying this logo on all its brochures and literature.

Dosco GPM is now well into a new phase in its development with enhanced facilities and a strong focus on international sales. From a small beginning some 15 years ago it has proved itself capable of competing internationally while building a stronger relationship with its local customers. Quality and service are paramount and the latter is epitomised by the introduction of the policy: 'If we do not have it, we cannot sell it'. This ensures that a large inventory is carried at its local facilities as well as at its distribution centres worldwide.

For more information contact Ken Barnard, MD, Dosco, +27 (0) 11 452 5843, [email protected], www.dosco.co.za





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