TRENCON CONSTRUCTION: Building for the Long Term

South Africa’s construction industry, like its economy, is unpredictable and challenging. To make it here, you have to truly understand the market and appreciate the local conditions in the country which presents significant opportunity alongside considerable risk.

A boom pre–FIFA World Cup 2010 was fantastic for construction sector, but the fallout saw the industry crumble. The big players toppled and the mid-tier companies began to pick up projects as the industry right-sized. Modest growth up until the end of 2019 saw employment and project pipelines stabilise, and investment confidence seemed relatively steady. However, the pandemic demolished any recovery and the industry – once the cornerstone of the economy – was once again crushed. Employees not allowed onto sites, money not moving, and any plans for new projects scrapped. At this point, understanding local conditions, and having a knowledge base for survival through the unexpected was critical.

At Trencon Construction, the Gauteng-based fully integrated and diversified construction entity, a South African flag flies from the flagpole at the front gate in the industrial centre of Edenvale. This is a company that was built in South Africa and has experience overcoming South African challenges.

As the trouble of the pandemic saw others close their doors, Trencon adjusted its strategy and strengthened its relationships with key partners. It became closer than before, understanding needs, challenges, and expectations. An obvious trend became clear, and the company pivoted away from a large contribution of office structure construction towards core infrastructure, including hospitals, energy, retail precincts, educational facilities, and mixed used developments. This was not a difficult change as the company was already recognised for excellence in these sectors.

But in July 2021, Trencon was dealt another blow with the passing of Founder and CEO Dino Singh, an industry stalwart who powered the business for more than a quarter century. Yavani Singh-Ninan, took the reins as CEO in 2021, and has made it clear that she will continue with the legacy and values instilled by Dino.

MULTI DISCIPLINARY

As well as experience in general construction, and a portfolio of mega projects to show, Trencon is a leader in civil engineering, structural steel, groundworks, industrial and commercial projects, and design and construct projects.

As the company enters a new phase of growth under the guidance of Singh-Ninan, the message is clear: “We pride ourselves on the ability to deliver projects of high complexity on time and within budget, while contributing to the social environment that it operates in,” she says.

“We like to position the company as an industry leader as a lot in the sector were nervous following the change in leadership and there was anxiety with the new team coming in. The new team has a solid base and is full of strategic thinkers.”

COO Toni Flavio has been in the civil and building industry for more than 40 years, and with Trencon for a decade. Commercial Director Garth Robinson has more than 30 years in the industry and helped to establish the business alongside Dino. Contracts Executives Anton van der Mast and Godfried Grobler have been with Trencon for 10 and 12 years respectively and have senior experience in the industry to rival any. CFO Kalpana Singh, and Human Capital and Transformation Director Aradhna Singh-Sewdial complete a leadership team that is highly qualified, endlessly experienced, and – importantly – human and approachable.

A flat structure sees the management team hands on with delivery of projects and this allows Trencon to be nimble and flexible in decision making. This approach was on full display as the company successfully completed the construction of the flagship Netcare Alberton Hospital, south of Johannesburg in early 2022.

NETCARE ALBERTON

“We recently finished the Netcare Alberton Hospital which is one of the largest hospitals in South Africa,” smiles Singh-Ninan.

“We are very proud to have delivered this project on time and to the highest quality, given the impact of Covid-19 and difficult market constraints. It was also a very difficult time for our business with the passing of our founder during the construction. We would like to thank the Netcare team for this opportunity, and congratulate them on adding their largest newly built hospital to their portfolio. We look forward to working together in the future,” she added.

The hospital was developed by Rejem-Linton-Netcare, a joint venture consisting of Netcare Properties, local businessman Riaan Jonker, and Nedbank. Trencon was given the construction contract because of its historic success in the healthcare market, and its clear understanding of local conditions and industry. Netcare was delighted with the end result.

Jacques du Plessis, Managing Director of Netcare’s hospital division commented on the quality of integration on site. “The handover represents a significant milestone in the development of our new future fit healthcare facility. I would like to thank Trencon Construction and express our appreciation to the highly professional team of project manager, architect, quantity surveyor and the consulting engineering firms, as well as the many local, national and international sub-contractors and suppliers, for their hard work and exacting standards in bringing this large construction project to fruition.”

Netcare Alberton is home to 427 beds, across four storeys, with a total gross building area of 60,343m² including a basement parking area. This complex but exciting project is a feather in the cap for Trencon as it looks to separate itself from the pack.

INDUSTRY EXCELLENCE

In residential property, the company’s skills were called on by reputable developer Tricolt Property Developments to create one of Johannesburg’s most exciting new developments – the Tree Tops Houghton. This luxury apartment building sits at the intersection of Rosebank and Houghton and is considered as one of Africa’s most desirable postcodes. Of course, nothing but the best was acceptable and Trencon rose to the challenge.

“[A project like this] obviously seemed like an insurmountable task while we were all locked up at home, but we decided to up our marketing spend, be a little more strategic in terms of who we were marketing to, and this week we’re proud to be handing over the 131 Tree Tops apartments to the appointed construction company, Trencon,” said Tim Kloeck, CEO of Tricolt when the project broke ground in 2020, after a difficult period during the height of the pandemic.

The R300 million project saw Trencon take the position of development partner and main contractor, employing a range of skilled partners to ensure brand-Trencon was upheld and the strict specifications of Tricolt were delivered unanimously.

Similarly, at the Tlhabane Square mixed use precinct, developed by the PIC in Rustenburg, the focus on local labour and locally-sourced materials, while promoting skills development in the region, was high on the agenda. A 100% black, female-owned business, Trencon was happy to be a part of a project, alongside WBHO, which made a real impact in the area.

A retail mall, office space, ancillary buildings, a new magistrates court, taxi drop off, and other buildings has transformed the busy area, west of Pretoria. A minimum of 30% of the work in the supply chain had to be completed by 51% black owned businesses – a target which was met, with Trencon Contracts Manager, Geoge Honey particularly happy with the skills transfer that was realised during the project. “We have a labour desk officer who was elected by the local community. He has a database of available people and we source labour through that database when needed,” he explained.

Completed in August 2021, the Tlhabane Square project had provided a source of pride in the local community, feeding into the core Trencon values of sustainability, integrity and excellence.

Valued at around $29 billion in 2021, the SA construction space is expected to grow, depending on your source, between 2% and 8% until 2026. Clearly, there is scope for companies that can adapt and change, and those with a multi-disciplinary background are set to thrive. Whether it’s hospitals, residential buildings, corporate head offices, or refurbishments to government infrastructure, the team at Trencon understands the requirements and is well placed to make the most of a South African value chain. Despite the economic sloth in the country, expect this business to continue doing good things and leaving its mark with each project that is successfully completed.