http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.93Change: -0.04
R/$ = 12.68Change: 0.06
Au 1094.89 $/ozChange: 5.03
Pt 983.00 $/ozChange: -5.00
 
 
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  
 
 
Jul 12, 2012

Cottage, secondary steel industries hold biggest growth potential – ISF

Back
Construction|Engineering|Africa|Components|Design|Environment|Export|Fabrication|Ghana|Housing|Industrial|Mining|PROJECT|Projects|Renewable Energy|Renewable-Energy|transport|Vital Engineering|Africa|Angola|Australia|Canada|Ghana|Malawi|South Africa|Tanzania|Uganda|Cottage Steel Industries|Cottage Steel Industry|Cottage Steel Sector|Energy|Equipment|Local Light Steel Frame|Local Manufacturer|Local Secondary Steel|Maintenance|Manufacturing|Products|Secondary Steel Industries|Secondary Steel Industry|Secondary Steel Products|Secondary Steel Supply|Steel|Steel Components|Steel Industry|Steel Sector|Structural Steel Mining Contracts|EPCM|Dodds Pringle|Maryland|Wind Farm Technology
Construction|Engineering|Africa|Components|Design|Environment|Export|Fabrication|Ghana|Housing|Industrial|Mining|PROJECT|Projects|Renewable Energy|Renewable-Energy|transport|Vital Engineering|Africa|Angola|Ghana|Tanzania||Energy|Equipment|Maintenance|Manufacturing|Products|Steel||EPCM|||
construction|engineering|africa-company|components|design|environment|export|fabrication|ghana-company|housing|industrial|mining|project|projects|renewable-energy|renewable-energy-company|transport|vital-engineering|africa|angola|australia-country|canada|ghana|malawi|south-africa|tanzania|uganda|cottage-steel-industries|cottage-steel-industry|cottage-steel-sector|energy|equipment|local-light-steel-frame|local-manufacturer|local-secondary-steel|maintenance|manufacturing|products|secondary-steel-industries|secondary-steel-industry|secondary-steel-products|secondary-steel-supply|steel|steel-components|steel-industry|steel-sector|structural-steel-mining-contracts|epcm|dodds-pringle|maryland|wind-farm-technology
© Reuse this



South Africa’s small-scale steel sector, also known as the cottage steel industry, has the potential to develop into a more significant sector, which, if developed, could create downstream benefits for the rest of the steel industry, says International Steel Fabricators of South Africa (ISF) chairperson and MD of local manufacturer Vital Engineering Dodds Pringle.

Since its inception in 1991, one of the primary goals of the ISF has been to drive exports of locally fabricated secondary steel products for the international market. Pringle believes this goal can be achieved by further developing the cottage steel industry, which, in turn, entails encouraging local community members to use raw materials and their own equipment to fabricate steel components and products.

“While we are seeing the bigger picture in trying to secure structural steel mining contracts [for ISF members] in countries like Canada and Australia, as well as the rest of Africa, we are also considering the development of the cottage steel sector, with a possible future for exports in mind,” he says.

He adds that the unregulated environment of a small-scale sector enables local entrepreneurs to manufacture high-quality products at a relatively low cost, which provides endless possibilities for South Africans, such as job creation, wealth creation and new-enterprise developments.

“[The cottage sector] might be relatively small in terms of the [steel] industry as a whole, but we could probably start developing it into a fairly large industry if we start sector by sector, area by area,” says Pringle. He maintains that this could easily lead to a future in exports for previously unemployed individuals, and cites Uganda, Tanzania, Malawi, Angola and Ghana as examples of countries that are successfully promoting their cottage steel industries.

Pringle believes South Africa has many potential entrepreneurs who are artistically inclined. “They work wonders with steel and have the incredible ability to create things of beauty.”

He adds, that, although the ISF has partly achieved its goal to drive exports, there is still a lot of work to be done in terms of understanding the international market, particularly in the secondary steel industry.

This sector of the industry needs to work at developing a higher level of confidence and faith in South African secondary steel supply. “We hope that the secondary steel industry will take more of a pole position in terms of exports,” says Pringle.

Latest Industry Trends
The ISF’s attempt to establish local secondary steel in the international market will be further supported by new secondary steel industries in South Africa. Once established, these industries naturally turn to the international markets to achieve the benefits of mass production.

Pringle cites the recently established local light steel frame (LSF) housing industry as an example of an upcoming secondary steel industry.

He points out that, traditionally, South African steel has always been associated with the industrial environment, but interest in the use of this material is growing in the commercial sector. “[LSF] buildings are fairly easy to transport and erect; they also require a lot less maintenance,” he says, adding that the added benefits of LSF buildings far outweigh those of traditional brick and mortar buildings.

This relatively new industry has already started exporting products to the rest of Africa.

Meanwhile, the ISF has encouraged investment in wind farm technology and promoted partnerships with overseas companies to develop wind towers for the expansion of South Africa’s renewable-energy sector. “A lot of that fabrication will be done in South Africa, rather than importing [the towers],” says Pringle.

The local steel industry is developing new steels that will be able to manage the particular loads on the wind towers, he says. As a result, there are a variety of steel grades that are now being upgraded from traditional standards to 350, 400 and 500 WA materials.

“Improving our grades of steel to international standards enables us to improve on production and design, and to keep up with international design trends,” he notes.

Pringle stresses that, from a strength and performance perspective, the grade of steel that the South African industry is using at the moment is equal to any other steel produced globally. “So, from a downstream competitive perspective, our steel industry can compete fairly favourably with international projects,” he says.

Once the establishment of the wind tower industry in South Africa has been completed, it will be logical for this industry to also start looking north beyond South Africa’s borders for new opportunities in neighbouring countries, he adds.

Government Assistance
The steel industry is currently seeking protection from imports for the local secondary steel sector against dumping from subsidised countries. As a result, it is interacting with government on a regular basis to negotiate local industry protection.

“Government recently announced the new Manufacturing Competitiveness Enhancement Programme, which is very positive,” says Pringle. He adds, however, that if preventive measures for the South African secondary steel industry are not implemented now, steel business could soon start to move offshore, which has happened in other countries, like Australia.

As head of the ISF, Pringle has suggested that government consider placing import duties on all finished steel goods, but not on raw steel. “This would allow us to become a focused converter of internationally competitive raw materials, which will further improve our competitiveness,” he says, adding that it might also meet some of government’s goals for job creation, wealth creation and growth in the industry.

The ISF is also part of a current movement to establish ‘South Africa Incorporated’, also referred to as SA Inc, which would aim to bring together the various South African construction industries as one unit for the export markets. This would provide international customers with a holistic view of the country, compared with viewing local companies as individual entities.

“Traditionally, you find that a particular engineering, procurement and construction management (EPCM) company would secure a portion of a contract for a particular plant or project, but would be isolated,” explains Pringle. However, if that EPCM was part of a corporation like SA Inc, more than one local company could be involved and would benefit from a single project.

Pringle also stresses the importance of international confidence in South Africa and suggests that government do what it can to mitigate any lack of confidence in the local industry, which will, hopefully, boost the state of the industry in the long run.

Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Metals News
Updated 4 hours ago Embattled South African steel producer ArcelorMittal South Africa (AMSA) has offered insight into the “fair pricing model” it has tabled before government in return for tariff protection and a government stipulation that locally manufactured steel be designated for...
Newcastle Works
Africa's largest steelmaker ArcelorMittal South Africa said on Friday its half-year losses widened amid lower international demand and a weak economy in its home market. Its headline loss per share rose to nearly 25 cents per share for the six months ended 30 June...
Article contains comments
More
 
 
Latest News
Updated 4 hours ago Embattled South African steel producer ArcelorMittal South Africa (AMSA) has offered insight into the “fair pricing model” it has tabled before government in return for tariff protection and a government stipulation that locally manufactured steel be designated for...
Updated 5 hours ago Telecommunications group Telkom on Friday said it had posted a 1.7% uptick in net revenue for the three months to June 30, on the back of a strong performance by mobile on data revenue and higher fixed-line subscription revenue. Mobile net revenue for the first three...
Updated 5 hours ago Dangote Cement revised its 2015 spending plans to $1-billion from the $700-million estimated nine months ago after it commissioned two new African plants this June, Nigeria's biggest listed company said on Friday. The company, majority owned by billionaire Aliko...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Road and Rail 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
Daimler truck test engineer Dirk Stranz pushes one button, and then retracts his hands from the steering wheel of the Mercedes-Benz Future Truck 2025. “And now the truck is driving itself.”
The statutory body responsible for skills development and support in the banking sector, BANKSETA, was investing R68-million in the capacity building project of the University of Venda (UniVen), announced Bankseta company secretary Caroline King at a media event in...
LIONEL MOYAL Cloud services providers must compete against other cloud services providers for business by providing up-to-date systems and services
Legacy information technology (IT) systems are becoming increasingly obsolete because of the maturity, efficiencies and cost effectiveness of cloud-based IT services, says information and communication technology major T-Systems subsidiary Intervate head Lionel...
ARMANDÉ KRUGER Balancing the collection and processing of data must be aligned to strategy
Many complementary services enable companies to derive broad value from data inside and outside them. The complexity of data management means that companies’ strategies determine the various data systems and functions they will use, says PBT Group regional sales...
The South African Civil Aviation Authority (SACAA) has announced that it had awarded the country’s first remotely piloted aircraft systems (RPAS) pilot’s licence. It was issued on Friday, July 10, to SACAA employee and qualified commercial pilot Nicole Swart,...
 
 
 
 
 
 
 
 
 
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