Greiner Foam International (GFI) is forming a joint venture in the Republic of South Africa together with a local foam manufacturer. The new business enterprise emerged from the former Unimattress Company, established in 1997, and now operates under the name Unifoam (PTY) Ltd. “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,” says GFI Managing Director Manfred Marchgraber.
Unifoam currently employs 230 workers, and in 2012 achieved roughly EUR 20 million in sales. The former sole proprietor of the company will remain in executive management. In 2011, Unimattress sold around 6,000 tons of foam, and with a market share of 20 percent, ranks third among the competition. The corporate headquarters is located 70 kilometers north of Durban, near South Africa’s east coast.
Clear goal: South Africa’s Number One
Working jointly with the former owner, Greiner is pursuing one unequivocal goal: To become the number one company in the South African foam market. They expect to achieve this goal over the next few years.
Currently, only one-third of the mattresses produced in South Africa are made out of foam. The South African market has vast potential for high-grade foam mattresses. “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,” explains Manfred Marchgraber. Among the other goals, these joint venture partners plan on tapping into additional segments – such as the automotive market – and expanding into neighboring countries.
Focus remains on BRICS countries
The expansion of GFI into South Africa represents the Greiner Group’s first step on the African continent, and another milestone in the corporation’s strategy of internationalization. “We are keeping our eyes wide open and continuing to review new projects, especially in China, India, and Brazil,” tells Axel Kühner, CEO and Chairman of Greiner Holding AG.