Castaways
Fishing, both salt water and fresh water, is becoming one of the largest sport and hobbies in South Africa.
A great number of small time operators are manufacturing sinkers from their backyards using handheld moulds and quite often stolen lead. They supply small quantities of sinkers to some of their local retail fishing and tackle shops, sometimes at ridiculously low prices (depending on their financial needs). The quantity they can supply are however limited and their supply not always that regular and reliable.
The major supply of fishing sinkers, which runs into the hundreds of thousands, are distributed by major wholesalers in the provinces. These wholesalers are looking for manufacturers who can supply large volumes with quick turnover times at competitive prices. Of these bulk manufacturers there are a few in the country of which Castaways is one.
Manufacturing these large volumes can only be accomplished by using automatic die casting machines.
CASTAWAYS has three Die-casting machines Each of these machines has a capacity, with one trained operator, to produce 5 000 sinkers per day on a normal 7 hour day. Dies for these machines are expensive, in the region of R 30 000.00 each and the company owns 22 of these dies.
The company also utilizes a spincasting machine for the manufacture of specialized sinkers. Moulds for the spincasting machine are made out of silicon which is much cheaper than the dies of the Die casting machines. This machine could also be used for the manufacture of medals and a whole range of articles requiring casting.
Manual and pneumatic machines are also employed for manufacture of surf sinkers as well as diving weights.
The company sells to both the Retail and Wholesale market, with established clientele and great potential for expansion of client base.
This is an ideal opportunity to acquire a running concern for a purchase price below asset value.
Asking price R650 000,00 (Asset value approx. R1 400 000,00)