Kremsmünster, Austria -- Flexible foam group Greiner Foam International (GFI) is forming a joint venture in the Republic of South Africa with local foam manufacturer Unifoam, and says its aim is to make the business the number one foamer in the country.
"The foam market in South Africa has enormous growth potential. Our goal is to raise Unifoam to the number one spot in this market over the medium term," said GFI managing director Manfred Marchgraber, in an 18 Feb statement.
The new business is a venture with the former Unimattress company, set up in 1997, and now operating under the name Unifoam (PTY) Ltd.
Unifoam currently employs 230 workers, and in 2012 achieved roughly €20 million ($26.2 million) in sales. The former sole proprietor will remain in executive management.
Greiner said that in 2011, Unimattress sold around 6000 tons of foam, has a market share of 20 percent, and ranks third in the region. Its corporate headquarters is 70 km north of Durban, near South Africa's east coast.
Together with the former owner, Greiner said its unequivocal goal is to become the number one company in the South African foam market - a goal they expect to achieve over the next few years.
Currently, only a third of South Africa's mattresses are foam, so the market has strong potential for high-grade foam types, GFI said.
"In South Africa, the demand for top-notch quality mattresses is on the rise. With our expertise in qualitatively superior foam, we will consistently improve the overall image of foam mattresses and identify solutions," said Marchgraber.
Among other goals, the joint venture partners plan on tapping into additional segments - such as the automotive market - and expanding into neighbouring countries.
GFI said this expansion into South Africa represents group's first step on the African continent, and is another milestone in its internationalisation strategy. "We are keeping our eyes wide open and continuing to review new projects, especially in China, India, and Brazil," commented Axel Kühner, ceo and chairman of Greiner Holding AG, headquartered in Kremsmünster, Austria.
PIC: Manfred Marchgruber of Eurofoam
