R/€ = 13.64
R/$ = 10.99
Au 1197.91 $/oz
Pt 1223.00 $/oz
Jan 30, 2008
Podcast - January 30, 2008Back
Engineering|Johannesburg|Africa|ArcelorMittal South Africa|BAE Systems|Cement|Central Energy Fund|Defence|Eskom|Industrial|Ipsa|Lighting|Materials Handling|Petrochemicals|PPC|PROJECT|Public Enterprises|Pumps|Sasol|Systems|Africa|South Africa|Building|Electricity Conservation Programme|Electricity Consumption|Electricity Situation|Electricity Supply Problems|Energy|Logistics|Materials Handling|Petrochemicals|Short-term Steel Shortage|Steel|Steel Industry|Systems|Eastern Cape|Alec Erwin|Matthew Hill|Power|Rick Reato|Operations|Eastern Cape
© Reuse this From Engineering News in Johannesburg, I am Matthew Hill
In our lead story this week:
South Africa has unveiled plans to cut the country’s electricity consumption by 10% over the next six months, in an attempt to deal with the prevailing power crisis.
This new plan comes as industry and mines took a hammering this week, when Eskom could not guarantee uninterrupted supply, forcing many companies to suspend operations.
The programme will initially centre on load shedding and preemptive load curtailment, but will later introduce power rationing.
This latest plan will run in conjunction with government’s electricity conservation programme, which hopes to save 3 500 MW through interventions such as solar power, efficient lighting, metering and fuel switching.
But despite the electricity situation being declared a “national emergency” and making international news headlines, the government insists that power constraints are not deterring investment.
Public Enterprises Minister Alec Erwin:
The country’s power crisis is also taking its toll on the steel industry, with one of the country’s largest producer warning that it cannot meet its clients’ demands.
ArcelorMittal South Africa CEO Rick Reato says the company’s output will take a knock of 300 000 t if the electricity supply problems continue for two more weeks.
A Johannesburg-based analyst describes the situation as disappointing and says the company may have to reconsider its expansion plans. He also says that fears of a short-term steel shortage are indeed warranted.
Petrochemicals giant Sasol has resumed normal production capacity at its plants producing transportation fuels to the inland region, laying to rest concerns that country’s pumps may run dry.
But while a short-term shortage may not be an immediate threat, experts warn that a huge liquid fuels shortage is looming as a result of the country’s economy growth patterns.
Independent power producer Ipsa has signed a deal with the Central Energy Fund for a key role to the integrated energy project being developed at the Coega Industrial Development Zone in the Eastern Cape.
Under the agreement, Ipsa will install a 521-MW open-cycle gas turbine plant and will look at building four more plants with the same capacity.
Also in this week’s Engineering News Online:
Global defence group BAE Systems will transfer the development and production of the new Pinzgauer military vehicles to the group’s Benoni site.
Cement producer PPC says growth in regional cement demand will cool this year, following double-digit rates for a number of years.
Global steel output reached a new record in 2007, growing to 1,34-billion tons. This is an increase of 7,5% from 2006 and the fifth consecutive year that steel production grew by more than 7%.
And in this week’s Engineering News magazine, out on Friday, read our cover story Africa’s presence in space.
We also have in-depth coverage of South Africa’s current power instability deepening into an economic crisis and some of the short-term measures that can be put in place to help both reduce demand and increase supply.
Finally, don’t miss our features on materials handling & logistics and gas.
That’s a round up of this week’s stories on Creamer Media’s Engineering News. For more on these and other stories, visit engineeringnews.co.za
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Intellectual Property Law News
Pharmaceutical companies typically invest substantial amounts of money into research and development. Their research, however, is not only aimed at discovering new active pharmaceutical ingredients (APIs). Instead, some companies make small modifications to existing...
A controversial patent process known as ‘ever-greening’ is being carried out by many pharmaceutical brands, and is preventing medications from being made available as generics, affecting many South Africans who are struggling to keep up with the cost of medication....
It has been over six years since the government began developing the draft policy on intellectual property (IP) that has been the focus of major public controversy following the PharmaGate scandal, which involved a leaked pharmaceutical industry email by Knowledge...
Updated 8 minutes ago Increased maintenance costs, poor rolling mill yields and strike action have widened Evraz Highveld Steel’s operating loss, from R149-million in the nine months ended September 30, 2013, to R483-million for the comparative 2014 period. The company added on Monday...
Updated 9 minutes ago Energy Minister Tina Joemat-Pettersson has misled Parliament and should be suspended pending an investigation, the DA said on Monday. "Reports indicate that the minister was involved in recommending and appointing Mr Tshepo Kgadima as chairman of the board of...
Updated 35 minutes ago The world’s biggest mining company BHP Billiton has agreed a R10-billion, five-year liquid metal supply contract with a black-controlled consortium in a transaction that gives the South African aluminium industry a shot in the arm. The diversified major, which is in...
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
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.