Pogotla kicks off
The thinking was simple – produce sawn timber instead of buying it from suppliers. Stripping out the extra expenses saw the numbers working in Abraham's favour with a second-hand circular mill and Wood-Mizer LT15 sawmill launching Pogotla in 2007.
A second Wood-Mizer LT15, two Wood-Mizer LX450s, and a Wood-Mizer six-head HR500 Resaw, later split into a two- and four-head setup to improve recovery, underscored Pogotla's rapid growth.
Pogotla's initial focus was milled timber for walk-in customers. The accuracy and quality of Pogotla's sawn product soon quadrupled into supply contracts across the province.
But Abraham had his eye on a larger prize.
He knew Pogotla's ability to maximize recovery and add value to sawn timber was the gateway to further growth.
The six-head Wood-Mizer resaw, later split into a two- and four-head unit, allowed Pogotla to reach its current 75% recovery rate.
With recovery in place, Abraham's focus then turned to value addition. A broomstick plant failed because it did not meet Pogotla's cost-to-income targets.
A move to door manufacturing delivered the margins Abraham wanted. Sawn material, plus finger-jointed offcuts and recovered material, are all now plugged into place to deliver a door range that now goes to the largest hardware stores in the area.
The third objective was in-house drying capacity. Wet-off-saw timber that could now be dried allowed Pogotla to dry its timber for structural applications and Pogotla's manufacturing plant.
A fourth objective was the waste left over after recovery and manufacturing. Offcuts from manufacturing are now chipped and sold to Sonae Arauco's White River board production plant. Shavings go to chicken and horse farmers in the area, all sold at a profit. Whatever's left over goes to Pogotla's kilns to drive the boilers that deliver steam to the kilns.
The current sawn timber output from the mill stands at between 900 and 1200 m3/month. A fleet of 10 trucks distributes Pogotla's product across the Limpopo Province. The current employee tally is 83, down from 110 due to industry challenges.