Reunert & Lenz, as the company was first known over a hundred years ago, can scarcely be recognised in the Reunert of today. Over the years the company has changed from a two-man concern in the early days, to a powerhouse in electronics, telecommunications and electrical engineering employing 5 000 people.
Established in 1888, the company was the creation of Theodore Reunert, an enterprising young engineer from Leeds, and Otto Lenz, an export salesman. Their initial business was as the agency for John Fowler and Company of Leeds, suppliers of traction engines, plows, and later locomotives. Over the years they held many other agencies.
Reunert and Lenz quickly became South Africa's leading specialists in the new fields of electric lighting and power transmission. They brought power to East London, the country's first town using alternating current. They also electrified Kimberley and Bloemfontein, and stations as far afield as the former Lourenço Marques (today Maputo).
In 1907 the failure of a gas-engine power scheme in Johannesburg proved the perfect opportunity for Reunert and Lenz to make their name. With frequent power failures in the city affecting everything including the trams, the crisis in Johannesburg had to be resolved quickly. Reunert and Lenz came to the rescue with a replacement steam-generated power plant in a miraculous 6 weeks.
During the first part of the twentieth century Reunert and Lenz continued as agents for international firms such as Babcock & Wilcox, Bellis & Morcom, ASEA of Sweden and the North British Railway Company. Products included almost every aspect of engineering from ploughs and steamrollers to locomotives, tugboats and trams. By the mid '50s, Reunert & Lenz had supplied over 2 500 mainline locomotives from North British to the SAR.
In 1914 the company converted to a private limited liability company known as Reunert & Lenz Limited. The Great Depression of 1929 hit the company hard but Reunert & Lenz survived thanks to their sole agency for Babcock and Wilcox Ltd boilers. Power stations continued to need equipment and spares when all other business was halted.
Throughout the Second World War when imported goods were scarce, Reunert & Lenz survived by turning to engineering manufacturing and distribution of local products. After the war the company boomed with the economy, expanding activities to other southern African countries. By 1955 the marketing network had been strengthened to incorporate branches in over 20 industrial centres.
A new approach saw management seeking overseas principals to take a stake in the country. For Reunert & Lenz enormous growth demanded a heavy cash injection and in February 1948, 60 years after the original partnership was founded, the company was successfully listed on the JSE. In the post-war period up to 1980 three business areas dominated the company namely electrical, distributing the products of Fenner of England and locomotive equipment.
A decision in the 60s had brought overseas associates into South Africa to operate jointly controlled companies with Reunert & Lenz on the basis of 50-50 partnerships. Five such "company marriages" were made with European companies and continued successfully until the merger with Barlow Rand.
By the early 80s warning signals began to flash. Rivals sought to wrest control from existing shareholders and Barlow Rand was chosen as a majority holder to afford umbrella protection. Incorporated into Barlow, the company became known simply as Reunert Limited in 1983 and prospered with new activity for Reunert including a first entry into the computer business.
Reunert was hard hit by cutbacks in the spending of major quasi-government corporations like ESKOM and ISCOR during the mid 80s. Some restructuring followed. In 1986 Reunert acquired a further 30% shareholding in ATC (from BICC) bringing its stake to 55%. Reunert Computers was sold to a new company, Technology Systems International in 1987, whilst the 30% interest that Heinemann USA held in CBI was bought, making it a wholly-owned company.
Strengthening its telecommunications interests, Reunert acquired a 50% interest in Telephone Manufacturers of SA (Pty) Ltd through subsidiary GEC South Africa. Reunert was now structured in four divisions, namely electrical, telecommunications, consumer and commercial and defence and allied.
The early 1990's was a period of prosperity for Reunert and in 1993 the group was unbundled from Barlows. However, the group diversified too fast into a variety of non-core operations which had a negative effect on Reunert's profitability.
In 1997 a basically new management team was appointed who implemented a restructuring programme to turn the company into a focused, competitive organisation. The past few years have seen the composition of the group changing due to various disposals of non-core operations or closure of unprofitable businesses. In March 1999 Reunert sold its effective interest in GEC SA and its direct interest in Telephone Manufacturers of South Africa (Pty) Ltd to Marconi Communications. Other major disposals include the mechanical engineering division Reumech OMC that was sold to Vickers and the 50% stake in Alstom which was sold to its parent company Alstom France.
Entering its second century, the group is now focused on electronics and electrical engineering, supplying value-added products, systems and solutions to local and international growth markets. With a solid commitment to sustainable growth and earnings, Reunert seems poised for an ever-brighter future. The group and its people have proved that they have the ability to adapt to an ever-changing environment.
