http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.17Change: 0.03
R/$ = 11.07Change: 0.01
Au 1238.28 $/ozChange: -4.47
Pt 1258.00 $/ozChange: 3.00
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jun 08, 2012

Steel merchant expands through acquisition

Back
Construction|Johannesburg|Richards Bay|Africa|Bell Equipment|Brown McFarlane Africa|BSI Steel|BSi Steel KZN|GM|KZN|System|Water|Africa|Automotive|Capital Equipment Manufacturer|Equipment|Manufacturing|Mining|Product|Products|Service|Steel|Steel Merchant|Steel Plate Profiling Service Centre|Steel Plate Range|Steel Plates|Steel Users|Brown McFarlane|Lee Daff|Ross Teichmann|Water
Construction||Africa|Bell Equipment|System|Water|Africa|Automotive|Equipment|Manufacturing|Mining|Products|Service|Steel||Water
construction|johannesburg|richards-bay-city|africa-company|bell-equipment|brown-mcfarlane-africa|bsi-steel|bsi-steel-kzn|gm|kzn-company|system|water-company|africa|automotive|capital-equipment-manufacturer|equipment|manufacturing|mining|product|products|service|steel|steel-merchant|steel-plate-profiling-service-centre|steel-plate-range|steel-plates|steel-users|brown-mcfarlane|lee-daff|ross-teichmann|water
© Reuse this



AltX-listed steel merchant BSi Steel is acquir- ing Richards Bay-based steel plate profiling service centre and steel merchant Brown McFarlane Africa, says BSi Steel South African Stockists CE Ross Teichmann.

Negotiations to acquire Brown McFarlane began this year and were finalised in April; however, the deal still needs to be approved by the Competition Commission, with a final ruling expected shortly.

The acquisition is expected to increase BSi’s product offering to specifically include Brown McFarlane’s quench and tempered steel plates, which will add to the company’s newly opened BSi Steel Service Centre division in Johannesburg, Gauteng.

The steel plate range is a high-strength, hard-wearing product range used in the mining and construction sectors, besides others.

The acquisition allows BSi to penetrate this niche market instantly, as opposed to slow organic growth, says Teichmann.

The acquisition will also benefit the KZN branch, as Richards Bay-based McFarlane is suitably placed to service one of BSi’s biggest clients – capital equipment manufacturer Bell Equipment.

The acquisition will also raise the steel merchant’s ability to service all steel users in the Richards Bay area.

BSi Steel KZN executive GM Lee Daff reports that, although it performed well last year, it aims to further position itself as a major steel merchant and enter new markets in the KZN region in future.

He adds that steel demand in the region has remained stable in recent times.

“The first quarter of this year has been quieter, in line with the usual cyclical consumption for the industry.

“January and February are quiet months but demand starts increasing in May. The demand pattern indicates a steady increase until September, reaching its peak in October,” he explains.

Teichmann says that the steel industry has experienced relative price stability in the last 12 months, unlike the period between 2008 and 2010. While price volatility appears to have stabilised, steel buyers are still aware of the risk of price volatility and are more inclined to take a conservative approach when buying steel.

KZN supplies mainly to the yellow goods sector – construction and earthmoving equipment – but it also supplies product to the manufacturing, metalwork, automotive and water utility sectors.

The KZN branch, being a stockholding branch, has a holistic approach in terms of its product range, says Daff.

“BSi Steel KZN stocks a range of products, in line with customer requirements, and adopts a just-in-time stock control system to save warehouse space and costs.

“The branch is an intermediary between the steel mill and the end-user. “Steel mills have very strict minimum order criteria and end-users generally require break-bulk quantities, which the merchant is able to provide.”

Edited by: Chanel de Bruyn
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Metals News
After a R1.5-billion impairment charge resulted in Hulamin reporting negative earnings per share (EPS) of 422c for the 2013 financial year, the aluminium supplier said on Monday that EPS and headline earnings per share for the 2014 financial year were expected to...
The World Steel Association (worldsteel) on Monday lowered its global steel demand growth forecast to 2% for 2014 and 2015, as the positive momentum seen during the second half of 2013 abated in 2014, with a weaker-than-expected performance in emerging and developing...
Henk Langenhoven
The Steel and Engineering Industries Federation of Southern Africa (Seifsa) warned on Friday that the metals and engineering sector could contract by between 2% and 3% in 2014, owing primarily to the fallout from a month-long strike in July. The sector, which made...
More
 
 
Latest News
A former employee of the Manufacturing, Engineering and Related Services Sector Education and Training Authority (Merseta) and his accomplice have each been sentenced to 20 years imprisonment after being found guilty of fraud by the Specialised Commercial Court, in...
The Richards Bay Bulk Terminal, in KwaZulu-Natal, loaded 1.49-million tons of cargo in September, exceeding its monthly target of 1.32-million tons, Transnet Port Terminals (TPT) said on Monday. TPT said the reaching of vessel targets ahead of deadline created...
Judge Dennis Davis
The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted on Monday that recommendations were being considered to “detect and...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
 
 
 
 
 
 
 
 
 
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