Specialist pipe fittings and valves manufacturer Philmac will soon ship out its first export order to Germany with its products bound for use across the country’s water utility sector and beyond.
A 40-foot container of approximately 35,000 Philmac fittings manufactured at its North Plympton facility will leave South Australia in December.
Under the contract, a German company which has been a long time trading partner with Philmac has now agreed to source a niche range of compression fittings and joiners to distribute across Germany.
Philmac Managing Director Mark Nykiel said the contract followed initial negotiations with the German- based company Friatec back in December and a subsequent trade visit to Europe earlier this year.
“Germany is a very established market for compression fittings and has extremely high quality and rigorous regulatory standards for entry,” Mr Nykiel said.
“Germany is also well known for its domestic manufacturing excellence. Winning this contract to supply a range of complementary products to Friatec’s current market leading offering is a strong vote of confidence in our own world-class operations in Adelaide.
“The deal also opens up new distribution networks into Switzerland and Austria so we see opportunities to break into both these markets in the near future. The water utility sector is the initial focus. This opportunity provides a modest start but it’s a very important and high specification market. Our initial order is valued around $250,000 and we expect steady growth in this market over time.”
Under the contract, Philmac will be supplying its largest compression fitting sizes from 75mm to 110mm as well as UTC transition joiners. The UTC transition coupling is used to connect pipes of varying materials in both low and high pressure environments and are used as repair joiners for water utilities overseas as well as being sold in hardware stores and commercial plumbing outlets in Australia.
The products are manufactured using the new injection moulding machinery Philmac installed last year as part of a $9.6 million upgrade of its facilities. Philmac invested $7.2 million with a further $2.4 million provided by the Federal Government through its Manufacturing Transition Programme.
“Investing in innovation and boosting the capability of our South Australian manufacturing facility is paying dividends. We have won major contracts in Italy and the Middle East over the past year, and now Germany, while our traditional export markets continue to perform to expectations,” Mr Nykiel said.
Philmac is a leading manufacturer and supplier of polyethylene pipe system fittings and valves to national and global markets. Almost half of its product is exported to 30 overseas markets across Europe, the UK, the Middle East, Asia, and the Americas.