Every business seeking long-term profitable and sustainable growth must have a reasonably sound cost structure. For aluminium industry players who are a part of the cost-intensive aluminium value chain, keeping costs to minimum is very crucial. Equipment cost, a major component of operating cost, can play a significant role in maintaining profitability if prudent investment decisions are made keeping market dynamics in mind. There are companies which deal in used equipment for metal businesses. Considering one of these entities for buying equipment and machineries for plants can prove cost-effective for aluminium companies which most of the time are hit by high price volatility.
The H.E. Phipps Company of Roxboro, North Carolina, USA is a leading metal processing equipment seller. The company deals in both new and used equipment and specializes in all sectors of the aluminum business except primary smelting and die casting other than taking up occasional consulting and metal trade projects. With over 60 years of experience in all verticals of aluminium business, the company knows exactly what is best for a buyer, and accordingly provides a solution at a price that is unbeatable in the industry.
Phipps’ winning business strategy:
The H.E. Phipps Company usually operates either on a commission basis with the owners, or employs a Buy & Resell approach where used equipment removal, packaging and shipping, modification, re-installation, startup and training can be provided. By opting to do business with them companies can turn their surplus or idle assets into immediate cash that can be used to pay down debt or reinvested in the business. So, basically it is a win-win situation for both buyers and sellers of used equipment.
In case, good quality used equipment is not available, companies can also buy new ones from Phipps Company, as we have access to sources for new continuous casting, rolling, thermal processing, tension leveling, coil coating Items and other equipment that are required in an aluminium plant.
The equipment dealer quite early in their years of operation decided on not to buy and maintain inventory but rather to offer a potential buyer an objective approach to obtaining the best equipment for the application at a fair price. This has created a wide and flexible market for them.
So, what exactly are the benefits of investing in a used mill?
- It involves lower installed cost
- Reduces project completion time significantly as compared with new equipment
- Enables a business to respond quickly to a new opportunity
- Facilitates faster commencement of operation than it is possible with a new equipment
All these factors contribute sales and profits to the bottom line much ahead in time.
Phipps Company provides a gamut of exclusive services for the buyers and sellers of aluminium process equipment which include:
- International sales of idled or surplus equipment
- Sourcing equipment for operation/plant
- Exclusive sales agreements
- Export packing
- Freight forwarding
- Reinstallation, start-up, and training (through their network of aluminum industry personnel worldwide)
- Sales representation for several high quality OEMs
Some of the cutting-edge technology driven solutions that Phipps Company takes pride in are conveyor type de-lacquering systems, swiveling & tilting rotary melting furnaces, patented Lauener block type continuous casters, pressure feed bar coil coating systems, near infra-red ovens, and casting and rolling systems for production of impact extrusion slugs.
Managing assets of a manufacturing company can be a daunting task. Especially in the present market scenario when excessive production of aluminium and rising exports from China are adding to the global glut leading to steady decline of prices and many aluminium companies finding it difficult to operate in full capacity. In such situations taking asset management decisions becomes all the more crucial. Then it makes more sense for businesses to rely on solution providers such as Phipps which can help them secure a better place in the market both financially as well as technologically.