Ever Star Industries: on a growth trajectory

September 18, 2024

Ask any newly appointed chief executive officer what he would most like to achieve, and there’s normally one answer: “I would like to grow revenue.” Of course, this isn’t always achieved by a new CEO. However, it’s certainly a claim that Danny Li, recently appointed CEO of Ever Star Industries, can make. As COLIN WINDELL discovers at Electra Mining, Li hasn’t just marginally increased sales; he’s grown them by an impressive 20%!

Li was appointed just over a year ago and he’s upbeat about prospects for the company. He’s equally optimistic about potential growth in South Africa’s mining and construction market. “I think the South African economy is booming and we have an upturn in the market. Investors and customers alike seem to be a lot more confident with the new Government of National Unity, which seems to be bringing in a lot of new investment,” he notes.

Li believes that the close relationship between the South African and Chinese governments also bodes well for the future. “There have been lots of discussions between the South African president and the president of China in terms of increasing investments, and I think you can see it as well in our sales, which have increased by 20% in the past year. Many people have more confidence in the country,” he expands. “I think people were anxious before the elections, but they’re feeling more comfortable now. This has certainly helped us in the truck market. Greater confidence always results in increased orders!”

Alan Parry, general manager of Ever Star Industries, echoes this confidence in the future of the local market, pointing to the increased number of Chinese products on view at the show (even though there were fewer truck manufacturers than displayed at the last show).

Alan Parry, general manager of Ever Star Industries, says that the company has exciting plans in place.

“In previous years, there were many more OEMs at Electra Mining. The current scenario may be due to the fact that the way people buy is changing. The OEMs may not be getting the return on investment that we need to make to be able exhibit at a show like this, but I certainly believe there’s value in us being here. There has been a lot of interest in our incredible trucks, and we’ve had lots of people asking for quotes, which is great. This is testament to the growing popularity and success of the products within the Ever Star stable,” he tells FOCUS.

Established in August 2010, Ever Star Industries is the sole distributor of Powerstar trucks, Foton trucks, and Shantui construction and mining equipment in the Southern African Development Community (SADC) region of sub-equatorial Africa. The company is headquartered in Centurion, and it has an assembly plant located in the industrial hub of Pietermaritzburg, KwaZulu-Natal, where the Powerstar and Foton ranges are assembled according to ISO 9001 international quality standards.

At Electra Mining, the company exhibited a comprehensive range of its products. “We have water tankers, tippers, and our yellow equipment, with the Powerstar extra-heavy trucks displayed alongside the Foton medium truck range, and which is assembled from SKD packs in our Pietermaritzburg plant,” reveals Parry.

According to Li, the company is on an upward trajectory. “2023 was the company’s best sales year since 2010. Last month (August 2024), we had the best sales month in our history,” he tells FOCUS.

“We were one of the first companies to follow China’s ‘Silk Road’ initiative that seeks to increase investment potential in Africa,” he adds.

Li goes on to say the company has 180 local employees and is looking forward to increasing sales, expanding, and hiring more local employees.

“We are certainly geared up to take on all the challenges that the country and the market throw at us. Furthermore, we are definitely going to bring in new products to make sure we can supply the market with any of the trucks that they want, and in any of the categories they require,” adds Parry.

Although Ever Star Industries is deeply rooted in South Africa, it has independent dealerships in all SADC countries, including Namibia, Botswana, Mozambique, Zambia, Zimbabwe, and the Democratic Republic of Congo.

“Between 30 and 40% of annual sales are cross-border. Everything is routed through us. We assemble the trucks from SKD kits using local labour and some local components, and then we sell them on a wholesale basis to our dealerships,” says Parry.

Danny Li, the newly appointed CEO of Ever Star Industries, is upbeat about prospects for the company.

“Johannesburg and KwaZulu-Natal are our two biggest markets, followed by Cape Town, which is on a par with our cross-border trade,” he continues.

Much like the passenger automotive business, competition is rife in the commercial vehicle game. “We have a lot of competition, and as is the case in the car market, we are facing many other Chinese brands that are entering the local market,” Parry says.

While an increase in competition can make business tough, it is clear that the Ever Star team is remaining optimistic. “On a positive note, throughput in the ports has improved compared to a month or two ago. I really hope they are doing something about it and sorting it out on a more permanent basis,” emphasises Parry.

He also shares that, while he cannot divulge specifics, we will be writing many more articles about Ever Star in the not-too-distant future: “All I can tell you now is we have some exciting plans in place. Watch this space!”