By Eamonn Ryan
Sebastian Hills, sales director of Staycold International, explains the advantages of local manufacturing.
Founded in 1979, Staycold has become a leading producer of refrigeration units specifically tailored for the African market. Hills emphasises that a key factor in its success is the company’s deep understanding of local needs and challenges. This, he believes, is essential to creating products that truly meet customer requirements.
Hills reflected on Staycold’s history, noting that the company’s roots in Parys, where it was founded to provide energy-efficient fridges to the farming community, are a testament to its long-standing commitment to local manufacturing. “We employ over 100 people here, making a meaningful impact locally,” he says, underscoring the company’s contribution to both the economy and the community.
While many argue that manufacturing overseas, particularly in countries like China, offers cost efficiencies, Hills believes that such an approach often compromises quality and control. “You lose oversight, and ultimately, the products may not be suitable for the local market. By manufacturing locally, Staycold can closely monitor production, ensuring that our refrigeration units are built to withstand the unique demands of the South African climate.”
Regarding the technical complexities of refrigeration, especially in hot climates, Hills explains that refrigeration is often perceived as just a “box that makes cold”, but designing units for regions like South Africa—where temperatures can exceed 30°C—requires more than just basic functionality. “Units designed for cooler climates, like Europe, can quickly fail in South Africa’s heat. Products built to operate in environments around 25°C might struggle when placed in environments where temperatures reach 40°C, causing significant performance issues.”
The key to effective refrigeration in these conditions lies in selecting the right refrigerants and investing in high-quality insulation and compressor technology, which is something Staycold prioritises in their designs.
The cost of quality
Staycold’s products are often priced at a premium compared to our competitors, but Hills believes this is justified. “Investing in a quality refrigeration unit can save significant money in the long run. While customers may initially be deterred by the higher purchase price, operational costs— the electricity cost alone can be more than the cost of the cooler many times over from a TCO perspective – our normal ROI is after 18-24 months, with the savings over a seven year period equating to the cost of a new unit. A unit designed for higher efficiency in hot climates can reduce electricity costs and provide better long-term value.”
As a local manufacturer, Staycold benefits from certain protections, such as tariffs on imports, which help make their products competitive despite being priced higher. Hills noted that the cost of importing refrigeration units from places like China does not always result in a lower final price when factors like shipping tariffs, and the need for specialised adaptation to local conditions are considered.
Staycold primarily serves the middle to premium segments of the beverage cooler market, holding about 15-20% of the market share. While larger companies can afford to invest in quality products, smaller retailers and informal market businesses—such as spaza shops—often opt for cheaper alternatives. “Spaza shop owners typically look for the lowest price, as many have limited capital for more durable, energy-efficient equipment,” Hills explains.
An often-overlooked benefit of local manufacturing is the easier access to technical support and spare parts. “When you buy a local product, you have better access to after-sales service and support. This is particularly important for larger businesses that require consistent maintenance and monitoring of their refrigeration units. For corporate clients, Staycold has introduced remote monitoring solutions that can help optimise performance and reduce costs,” he says.
Corporate relationships and refrigerant innovation
Staycold’s largest customers include beverage bottlers and brewers, who use Staycold’s products for trade marketing purposes. Hills explains how these companies often brand the refrigeration units with popular labels, ensuring their beverages are kept at optimal temperatures in supermarkets. The company operates through both direct and indirect sales channels, working with around 250 dealers who distribute to the general market, such as bars, cafes, restaurants and spaza shops.
The company’s commitment to sustainability is reflected in its innovations with refrigerants. Hills discusses the environmental challenges posed by traditional refrigerants, such as hydrofluorocarbons (HFCs), which have a high global warming potential. Hills notes that, much like the transition from HCFCs to HFCs, the local industry will likely experience future shifts in refrigerant standards. “In response to this, Staycold is focusing on the use of hydrocarbon refrigerants like R-290, which offer much lower global warming potentials, though some challenges remain with its use in freezers, due to the need for larger compressors.”
Hills also pointed out that while the demand for refrigeration in retail environments continues to rise, especially in the frozen food sector, the shift away from HFCs will require both innovation and adaptability. He warns that as regulations tighten, the cost of maintaining older, non-compliant units will increase, which could have a significant impact on the industry.
Hills also discusses the role of equipment longevity in the transition to more sustainable refrigerants. Units that are well-maintained can last for 20 to 30 years without needing refrigerant replacements, provided they don’t develop leaks. “Well-maintained units won’t be affected by the phase-down of HFCs, while there is also potential for retrofitting older units with R-290-compatible components, which aligns with the principles of the circular economy.”
By sourcing components from trusted suppliers like Cubigel in Spain, ebm papst fan motors, and Danfoss controllers, Staycold ensures the quality and reliability of its products while supporting the local economy.
Hills emphasises the importance of considering the total cost of ownership when purchasing refrigeration equipment. “While upfront costs are often a concern, businesses that focus on energy efficiency, durability and support will ultimately achieve greater value over time. Staycold’s commitment to innovation, quality and sustainability positions it well to continue leading the market, offering tailored solutions that meet the specific demands of the South African market.”
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