R/€ = 13.18
R/$ = 12.12
Au 1181.24 $/oz
Pt 1123.00 $/oz
Oct 24, 2007
Another construction-related firm joins the AltXBack
Construction|Components|Design|Eskom|Export|Mining|Projects|Reinforcing|Transnet|Democratic Republic Of Congo|Zambia|Automotive|Manufacturing|Product|Products|Services|Steel|Infrastructure|Operations
© Reuse this Government's R420-billion infrastructure spend, Eskom and Transnet's capital expenditure and a booming construction industry were key motivators for the AltX-listing of steel products company Battershill Steel Industries (BSI), CEO William Battershill said on Wednesday.
BSI listed over 719-million shares on the exchange and raised R157,6-million in a private placement of some 157,6-million shares at R1 a share before listing.
Battershill said that, despite some pressure on the market during the past two quarters, the large-scale infrastructural development projects were starting to materialise and this would stimulate steel consumption and facilitate the organic growth of the company.
He expected the sector to be "quite buoyant for at least the next five years", adding that steel demand would be strong.
He foresaw significant growth in the construction industry for the company and said that it would be increasing its structural steel range, which had already been on the market for about a year.
BSI also wants to enter the reinforcing bar industry by acquisition. However, Battershill said that he this would only be finalised by the middle of next year.
Battershill noted that the only potential cloud on the horizon was the manufacturing sector, which accounts for just over 50% of steel consumption, as it is affected by competition from imported goods, the threat of the Chinese market and productivity issues.
However, he believed the challenges could be managed, adding that the sector was diverse and that some manufacturers would benefit from the construction boom, as well as the revision of import/export regulations.
On the subject of manufacturing, BSI is currently overhauling (stripping and rebuilding) a slitting line to produce steel for the manufacture of automotive components. The new processing line will be operational in six to nine months and will allow BSI to ramp up this product range.
The group recently bought 23 ha of land in Meyerton and is currently in the design phase of developing a new premises where the processing and distributing activities, which presently take place separately in Alrode and Isando, will be combined.
Construction of the between 15 000-square metres and 20 000-square metres factory will start in February next year.
BSI's four primary activities include the processing of steel (slitting, blanking and cutting), providing stockist services to local clients, trading to bulk end users and exporting mainly to Zambia and the Democratic Republic of Congo's mining operations.
Edited by: Liezel Hill© Reuse this Comment Guidelines (150 word limit)
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.