R/€ = 15.15Change: -0.01
R/$ = 14.28Change: -0.01
Au 1072.00 $/ozChange: 0.67
Pt 852.50 $/ozChange: 0.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

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 About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Jun 08, 2012

Steel merchant expands through acquisition

Construction|Johannesburg|Richards Bay|Africa|Bell Equipment|Brown McFarlane Africa|BSI Steel|BSi Steel KZN|GM|KZN|Mining|System|Water|Africa|Automotive|Capital Equipment Manufacturer|Equipment|Manufacturing|Product|Products|Service|Steel|Steel Merchant|Steel Plate Profiling Service Centre|Steel Plate Range|Steel Plates|Steel Users|Brown McFarlane|Lee Daff|Ross Teichmann
Construction||Africa|Bell Equipment|Mining|System|Water|Africa|Automotive|Equipment|Manufacturing|Products|Service|Steel||
© 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
Creamer Media Senior Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
Other Carbon Steel News
ArcelorMittal's South African unit priced its $320-million cash call at more than a 50% premium on Tuesday as it battles falling steel demand and rising costs, sending its shares soaring. "They're sending the signal that someone with deep pockets is backing them and...
South Africa’s crude steel production increased by 23.8% year-on-year to an estimated 650 000 t in October. Global crude steel production for the 66 countries reporting to the World Steel Association (worldsteel) was down 3.1% year-on-year to 134-million tons.
ArcelorMittal plans to cut up to 450 jobs in Liberia and lower iron ore exports from the West African nation as it battles to reduce costs, the world's largest producer of steel said. ArcelorMittal Liberia said its executives met with union leaders earlier this week...
Latest News
Business confidence has dropped by a full 15 points over the past year to reach its lowest level in five years, the latest Rand Merchant Bank (RMB)/Bureau for Economic Research (BER) Business Confidence Index (BCI) has shown. After falling from 43 to 38 in the third...
JSE-listed beverage, food and nonperishable packaging manufacturer Nampak’s basic earnings a share rose 3% to 228.3c for the year ended September 30, from 221.7c the year before. The company also reported an increase in group revenue and trading profit of 13%, to...
As Parliament mulls the new regulatory framework to govern South Africa’s financial industry, the sector is preparing for its promulgation; however, it will require a complete “rethink” of the way regulators guide financial institutions. The tabling of the Financial...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
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,...
This Week's Magazine
Updated 2 hours 49 minutes ago The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
Updated 2 hours 49 minutes ago The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
Updated 2 hours 49 minutes ago City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
NICK CHRISTODOULOU As about 58% of data stored by organisations is dark, they must identify this dark data to expose risks and valuable information
Updated 2 hours 49 minutes ago About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
BRIAN VERWEY Effective management, review and administration of non-core elements can improve business operations and increase revenue and decrease unforeseen risks
Updated 2 hours 49 minutes ago Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...
Alert Close
Embed Code Close
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
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