http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.87Change: 0.01
R/$ = 13.30Change: 0.00
Au 1133.54 $/ozChange: -1.31
Pt 1018.00 $/ozChange: -2.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Feb 25, 2011

Structural steel company optimistic about growth

Back
Engineering|Africa|Building|CoAL|Explosives|Health|Projects|Safety|Storage|Africa|Angola|Automotive|Explosives|Manufacturing|Products|Services|Steel
Engineering|Africa|Building|CoAL|Explosives|Health|Projects|Safety|Storage|Africa|Angola|Automotive|Explosives|Manufacturing|Products|Services|Steel
engineering|africa-company|building|coal|explosives|health|projects|safety|storage|africa|angola|automotive|explosives-industry-term|manufacturing|products|services|steel
© Reuse this

Structural engineering company B&T Steel warns that recent increases in steel prices, as a result of the flooding in Queensland, Australia, are having a devastating impact on the profit margins of projects for which prices were quoted in 2010.

The company, which designs and manufactures steel structures, says that the floods that devastated Queensland, which is a major exporter of coking coal, an essential steelmaking ingredient, resulted in increases in the steel price in January and February.

Further, it notes that the weather-related events in Australia have also led to shortages of certain steel products. “We find that merchants are on allocations and are only allowed to keep a certain amount of stock or purchase a certain amount of stock. Regular price increases from the mills also make pricing on jobs difficult,” says B&T Steel sales and marketing director Ben Dicks.

The company reports that one way to combat these issues is to carry stock, but it adds that not all companies are able to do so. Companies then also risk the possibility of projects being cancelled or delayed, which could further impact on the com- pany’s bottom line.

Meanwhile, the company reports that, over the past few years, the steel industry has dealt with, and overcome, many challenges.

It states that the steel industry showed a steady growth pattern in 2010, despite the fact that the market has become competitive.

“Last year also showed that the profit margins on projects are being minimised, which means that everyone needs to work smarter – a trend that is sure to resonate throughout 2011,” says Dicks.

“With the local market being so competitive and price sensitive, companies are beginning to look across borders for contracts. For some reason, South Africa seems to be excluded from the rest of Africa, as opposed to being part of Africa,” he adds.

Trading in Africa

Nevertheless, B&T Steel has a strong presence in Africa and, through good marketing, hopes to maintain and increase its presence. For this reason, the company also has a strategic marketing campaign in place that serves to create awareness among key stakeholders.

“We are currently involved in three projects in Angola, which includes a go-kart facility in Luanda, a warehouse and a workshop in Soyo and other mini warehouses.”

B&T Steel reports that it is also busy building a feed mill, in Mozambique, a manufacturing factory, in New Guinea, and a storage facility for explosives on a mine, in Sierra Leone. Two large projects that the company recently completed, include an automotive assembly plant, in Rosslyn, Pretoria, and a warehouse for agricultural biotechnology corporation Monsanto, in Lichtenburg.

“At B&T Steel, we are continually upgrading and improving our occupational health and safety management and, during 2011, we will be concentrating on obtaining our Occupation Health and Safety Advisory Services 18001 accreditation, which has great credibility in our industry,” comments Dicks.

“Currently, we find ourselves moving into a market that is competitive. We are tendering on some of the larger projects and we have invested in employing new staff and machinery to meet the demands of this market,” he says .

Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Steel News
OVERCAPACITY The global steel industry is currently experiencing an oversupply of steel
Latin America nonprofit steel organisation Latin American Steel Association (Alacero) in June announced that the global steel industry calls on governments to take action against China’s new steel policy, Steel Adjustment Policy, and overcapacity. The association...
NEW-GENERATION STEEL ROLLER Megaroller’s steel roller is designed to ensure accurate bearing alignment
To meet the materials handling industry’s need for a cost-effective, energy efficient and long-lasting steel roller that also creates less noise pollution, conveyor rollers manufacturer and distributor Megaroller launched a new-generation steel roller onto the market...
FLUCTUATING COMMODITY While importing steel is sometimes the most economic option, Universal Storage Systems remains committed to local procurement
A significant number of South African manufacturers have been forced to import steel over the past two years instead of buying it locally because local steel prices are high, says steel racking, shelving and mezzanine flooring manufacturer, supplier and installer...
More
 
 
Latest News
A preliminary investigation by the Railway Safety Regulator (RSR) into the derailment of a Shosholoza Meyl train in Kimberley earlier this month, found that Transnet Freight Rail (TFR) had failed to communicate with the Passenger Rail Agency of South Africa (PRASA)...
Three of home improvement company Illiad’s major shareholders – Sanlam, Visio and Coronation, which held 69.25% – have agreed to vote in favour of a takeover by Steinhoff, with the company’s remaining shareholders to vote on the deal on September 29. Seventy-five per...
Government should face the fact that South Africa’s full-blown jobs crisis is a matter of urgent public importance, the Democratic Alliance (DA) said on Friday. MP James Vos, the DA shadow minister of tourism, was responding to a letter by Baleka Mbete, the Speaker...
More
 
 
Recent Research Reports
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96