Time for change at Sicor

We now have a situation where a buyer can source a product from a number of companies in any part of the world. A fishing vessel can have a winch from Norway, nets designed in Iceland and Danish processing equipment.

Fishing can be done in different fisheries around the world with a skipper from Spain and crew from Mozambique. It can land is fish in Cape Town and then the fish can be exported to Spain and eaten in Portugal.

On the other hand, quota and fleet cuts due to a decline in the fish stocks are dominating the commercial fishing panorama.

In the past, all fishing gear used in the UK was made in the UK, Spain or Portugal. Ten years ago, there were half a dozen net manufacturers in the UK. now, there is none.

All these changes have prompted a reaction within the companies involved in the fishing business.

Twelve years ago, when Sicornete, the Portuguese twine & net manufacturer started its business, all the production was destined for fishing industury. Now,other markets as camouflage, sports or industrial applications are also part of their production. However, fishing still plays an important role in the company but diversification has inevitably became an option for companies to survive.

Jose Carlos Ribas, manager director of Sicor Group, which includes Sicornete, Sicor, ropes and cords manufacturer, and distributors Sicor International and Sicorlis - says that diversification is the key to facing up to the crisis that can hit different markets.

Like many other European companies, the Sicor Group has being affected by the cuts hitting the sector and by the strong compettion on price from the Far East suppliers. "Competition is very strong and it is very difficult to compete in terms of prices with producers and exporters from the Far East. But we can really compete developing new products, based on good technology with new advantages to make fishing more efficient. We can also compete in quality and good service. This is the philosophy behind our group during the last few years and it seems to be working."

Sicornete has recently launched a high-tenacity polyethylene product and is now researching on new products for the pelagic market. As a consequence of its quality policy, the company has gained the ISO 9001/2000 quality certificate.

In Sicor, as part of the quality goal, the production department and the laboratory are working very close. Sicor says that communication between the two departments is constant and every product they make has to be tested. At the moment, the Group is involved in research projects with Portuguese and overseas universities.

The company says that investment in new machinery is also a priority. It has recently invested EUR 500,000 in a new braiding machine that makes 'stronger and more resistant ropes.' Miguel Tarujo, production manager of Sicor says that the new machine can make stronger and cheaper ropes from traditional materials. "In the past, if you wanted a rope with a strength of 150 tonnes you need to use products like Dyneema. Now, you can have the same strength using other materials like raffia, polyethylene and nylon, which are cheaper. This means that the new machine allows you to make cheaper ropes with the same strength."

Delivering a good service involves knowing customers demands.

Fishing is now a global activity but, paradoxically, necessities are now more local and more specific for different kind of fishing. Manufactures are working closer with customers.

This was the philosophy behind Sicor Group when they started up Sicor International 10 years ago to have their own distribution channel for the UK, and Sicorlis to supply the Portuguese market and some African countries since 1994. "We want to be close to the final market. We want to have shares in distribution companies around the world to have our own channel of distribution for our products. We are looking for companies to invest in," says Mr Ribas.

He complains about the effects that the 'ambiguity' of the new Common Fisheries Policy (CFP) regarding mesh sizes regulations is having in the industry. "The lack of definition in the new CFP is conditioning investments. Shipowners that need to equip vessels do not take decisions and, therefore, do not stock or buy new nets. They are waiting for the situation to clarify." The way customers approach to the market has changed. Both manufactures and suppliers point out the stocks issue.

In the past, final customers used to buy large amounts of ropes and nets. Now, manufactures and suppliers have to stock. Alan Nute, managing director of Sicor International explains:

"Major customers in Scotland used to buy 10,000t and now 1t. They just buy what they need. They used to stock. Now, they expect the supplier to stock and you have to. If you cannot supply what they want, someone else will."

Sicor Group started in the fishing business more than 50 years ago and it says fishing will continue being a priority within the company.