The story of Steel & Tube Industries, one of Uganda’s top five steel companies and the largest indigenously owned steel maker is as fascinating as it is inspiring. His is a story of hard work, patience and commitment to quality which has in turn been rewarded by growth and success.
When Joseph Yiga, in 1985 incorporated Hardware Deals (U) Limited, his intention must have been to earn a living as a hardware suppliers dealer- mainly dealing in iron and steel products made by a few companies and manufacturers that were still in business at the time.
It shall be remembered that for most of the early 80s, Uganda was characterised by political instability and subsequently the 1985-1986 bush war that eventually ushered in the current NRM government. The peace and the subsequent post-war reconstruction that followed provided a good environment for construction materials dealers such as Yiga’s.
By 1995 Hardware Deals, had expanded and even acquired a new and larger location at Nakawa on the outskirts of the city, away from the crowded city centre. With expanded premises, demand grew and by this time, the company was retailing up to 30,000 metric tonnes of steel annually.
Business was so good that Joseph Yiga in November 2003 incorporated a second company, but this time a manufacturer, known as Steel & Tube Industries Limited (STIL). To stand out from the crowd, the company debuted Uganda’s first-ever Stainless Steel Tanks and MAT Tile roofing sheets. Total production capacity stood at a humble but significant 55,000 metric tonnes annually.
In 2004 STIL opened a second manufacturing plant in Kazinga on the outskirts of Kampala with an additional 84,000 metric tonnes annual capacity.
In 2008, Hardware Deals (U) Ltd was fused into Steel & Tube Industries Ltd to create one solid monolithic brand. In 2011, the company launched the first-ever s-wire nails, chequered plates and ribbed BRC (steel wire mesh) in the Ugandan market. This increased annual production capacity to 95,000 metric tonnes annually.
Growing demand and steady growth, saw the business add a new production line for expanded metal, barbed wire, smart link, smart tile sheets and box-type chequered plates.
In 2015, the company looked beyond the construction industry and introduced the first stainless steel food-grade grain silos in the Ugandan Market. In 2016, the company also pioneered the manufacturing of the STIL TMX B500 Rebars in Uganda. STIL TMX B500 is said by the company to be stronger and more reliable compared to the more common TMT bars.
Playing in the big league: 360,000 metric tonnes installed capacity
Growth in demand- domestically and in the East African region necessitated the opening of the third and this time much-larger manufacturing plant at the Namanve-based Kampala Industrial Business Park (KIBP). The Namanve plant alone had a total annual production capacity of 150,000 metric tonnes. The new plant was officially commissioned by president Yoweri Kaguta Museveni, President of Uganda in 2018. The president also launched the company’s new visual identity (logo).
In the same year, the company also, with funding from Uganda Development Bank (UDB) expanded production lines at its older plants, altogether, hitting a new installed capacity of 360,000 metric tonnes annually.
Total investment had reached over USD200 million by this time and STIL had grown to source both raw materials and technology from reputable suppliers from as far as Germany, South Africa, Russia, Taiwan, Japan and India.
By this time, STILL had also cut out a place for itself amongst Uganda’s top 5 still companies, the others being Roofings Limited, Roofings Rolling Mills, Uganda Baati and Tembo Steels. STIL, had as well expanded and diversified it product portfolio with some unique products such as MAT Tiles, flagship SMART Tanks, Ribbed BRC, and the STIL TMX, a higher grade of re-bars.
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But STIL is no stranger to quality awards. STIL in 2008 won the International Award for World Quality Commitment in Paris. They have also previously won the Quality Commitment Award in 2013 and 2014 from the Uganda National Bureau of Standards. They are also ISO9001:2015 Quality Management Certified.
The increased product portfolio, growing customer trust and demand also saw the company hit new financial highs. The company, at the end of 2019, according to figures available to CEO East Africa Magazine, made UGX327.7 billion in turnover and a net profit of UGX9.5 billion.
Although in 2020 turnover was reduced to UGX308.8 billion, the company made an even higher net profit- UGX37.4 billion, the highest ever in its 25-year history.
Although in 2021, net profit reduced considerably- due to the rising cost of production associated with the pandemic and the resultant macro-economic challenges, company turnover, still grew, reaching an all-time high of UGX427.2 billion. Net profit reduced to UGX8.9 billion. In fact, STIL was the only other steel company to turnover more than UGX400 billion in 2021 after Roofings Rolling Mills, a member of the Roofings Group, to date Uganda’s largest iron and steel conglomerate.
Beyond the financial growth, STIL has also continued to earn more trust from the market, with the company’s products being used in key national infrastructure projects such as power dams, major bridges and water projects.
Some of the power dam projects where STIL has been a major supplier, include the 600 MW Karuma Hydropower Dam, the 183 MW Isimba Hydropower Dam and the 41 MW Achwa 2 Hydropower Dam. STIL’s products have also been used in key road projects such as the Kampala Flyover Project, the Kampala Northern Bypass, the Paraa Nile Bridge in Murchison Falls National Park as well as the under-construction Kabaale International Airport in Hoima, western Uganda.
National Water & Sewerage Corporation (NWSC) also used STIL’s products at its gigantic 160,000m3 per daw Katosi Water Project. water project. And the Kabaale International Airport in Hoima.
Commitment to people, technology and quality
Joseph Yiga traces STIL’s success down to three things- people, technology and commitment to quality.
In a statement posted on the company’s website, Yiga says: “Steel & Tube’s growth is largely attributable to its highly skilled workforce, and the incorporation of modern technologies and methodologies in the manufacturing processes we employ. This combination has allowed us to identify and respond to the economy’s changing demand structures.”
“We strongly believe that the best quality product and service always wins business. Our commitment to quality runs straight from raw material to automated machinery to the finished product which allows our product to meet both Ugandan and International standards,” he further explains.
He adds that to ensure customers get the best products “all finished products are tested in the company’s onsite state-of-the-art laboratories.
