Back in 2014, the domestic steel-making industry was flailing.
Battling cheap Asian imports, global oversupply and price drops, local steelmakers were furiously lobbying the International Trade Administration Commission (Itac) for greater tariff protection.
It seems surprising then, that local entrepreneur Mayleen Kyster chose June of that year to register new steel-making and steel-asset holding company Africa Steel Holdings (ASH).
It appears, though, that the risky decision is paying off. Three years later, ASH is trading in raw, manufactured and fabricated steel.
The group has successfully delivered steel to several major construction projects, including energy projects, dams, bridges, buildings and road construction.
Kyster has also joined forces with reinforcing steel major and multinational Reinforcing Steel Contractors (RSC) to form joint venture entity RSC Avelo, which specialises in the fixing of rebar on site.
ASH also recently signed an enterprise development agreement with SA construction group Stefanutti Stocks.
Kyster says her love for the commodity was sparked during an internship at ArcelorMittal in Vanderbijlpark almost 15 years ago while she was an accounting student at Wits University.
finweek spoke to her about her plans for the business and how she manages the many challenges of the local steel industry.
How do you manage to stay competitive in an industry that’s struggling?
With great difficulty. Steel trading is a high-volume, low-margin business.
Our strategy in this economy is to pursue profitable work, even if the result is low volumes, and to keep working capital as low as possible.
How did you get funding to get started?
It is really difficult to get funding for a new business. I started with my savings. I then started trading and secured a few projects.
I was also given my first credit facility by the executive chairman of the RSC Group, Carlo di Nicola. This was really risky because he had never met me before and Africa Steel Holdings had no credit history.
I am forever indebted to him for this.
What is the motivation behind the joint venture with RSC, named RSC Avelo?
Any joint venture must yield results for both parties to the joint venture. The objective is to grow a profitable business.
The RSC group is a market leader in reinforcing steel solutions and I am humbled to have been afforded the opportunity to learn and be mentored by the best in the industry.
RSC Avelo is majority black-owned and our shareholders are also executive directors in the business.
We do get support from the private sector and I am beginning to lobby the public sector for more support at profitable margins.
We’d like to grow RSC Avelo into a R 500m turnover per annum business in the next three years.
What surprised you most?
Sweat equity – the hustle is hard.
What is the best business advice you’ve ever received?
Fail fast, learn to pivot.
How do you stay motivated?
My bank balance.
What are your non-work habits that help with work/life balance?
I don’t have a good work/life balance. My responsibility to my family keeps me grounded and thus every spare moment is spent with them.
I also love my spiritual home, the church which I attend and am very active in the church in various capacities.
The annual Southern African Metals and Engineering Indaba is taking place on 14 and 15 September in Sandton. Click here for more information.